Tax
Add to my areasEvery story on LexCircuit filed under tax: court orders, regulation, ethics opinions, litigation and research, each summarized across its sources.
Allahabad High Court dismisses challenge to 18% GST on online legal databases
The Allahabad High Court on October 26, 2026, dismissed a public interest petition challenging the 18% goods and services tax on online legal research databases such as SCC Online and Manupatra. Chief Justice Arun Bhansali and Justice Kshitij Shailendra rejected the plea at the admission stage on grounds of delay, noting the rate has applied since 2017, and did not rule on the tax classification.
Order (Bar & Bench) → · LiveLaw
Proclamation reshapes Canadian products subject to 50 percent section 338 duties, effective October 30, 2026
A presidential proclamation signed October 23, 2026 further modified the scope of Canadian products subject to the 50 percent additional duties imposed under Proclamation 11048 pursuant to section 338 of the Tariff Act of 1930. Annex I removed listed products, including plywood sheets and certain paper and machinery lines, and added others, including specified valves and carpets. The changes apply to goods entered on or after October 30, 2026.
Moonlit launches free AI-drafted, expert-reviewed commentary library on EU indirect tax
Dutch legal research company Moonlit has launched Commentaries, a free library of legal commentary that its AI drafts from primary sources and that paid academic editors and practitioner-authors review before publication, Artificial Lawyer reported on October 20, 2026. Moonlit dates its own announcement October 15. The launch covers EU indirect tax, organized article by article, and the commentary will also be available through Moonlit's data API and MCP connector for AI tools such as Copilot, ChatGPT and Claude.
Announcement (Artificial Lawyer) → · Moonlit
United States opens Social Security revocation window for clergy in 2029 and 2030
The president signed H.R. 227, the Clergy Act, on October 20, 2026. The Act permits a minister, a member of a religious order, or a Christian Science practitioner whose Social Security exemption is effective for 2026 to revoke that exemption by application to the Internal Revenue Service. A revocation applies to taxable years beginning after December 31, 2028.
Enrolled text (U.S. Government Publishing Office) → · House Committee on Ways and Means
West Virginia suspends dyed-diesel enforcement under 60-day emergency order
West Virginia declared a 60-day state of emergency on October 20, 2026, covering all 55 counties, and Executive Order No. 2-26 suspends state penalties for selling, storing, dispensing or using red-dyed diesel in highway vehicles. The order directs agencies to stop inspections aimed at detecting dyed diesel. The state motor fuel excise tax and commercial vehicle safety inspections remain in effect during the emergency.
Text (Office of the Governor of West Virginia) → · WV Office of the Governor, Bloomberg Law, American Quorum
Supreme Court agrees to decide whether 1868 federal ban on home distilling is constitutional
The U.S. Supreme Court on October 19, 2026, granted the federal government's petition in Department of Justice v. McNutt, agreeing to decide whether an 1868 law banning the production of distilled spirits at home is a valid exercise of Congress's taxing power. The Fifth Circuit struck the ban down in a suit by the Hobby Distillers Association, while the Sixth Circuit upheld it in a separate case.
Order (Supreme Court of the United States) → · CBS News, SCOTUSblog
Rulings this week
- UK · EWHC Spares 5,000 late-served Dieselgate claims but makes claimants share costs
- 9TH CIR. Keeps California's captive audience meeting ban on hold
- CANADA Ontario Court of Appeal says licensed paralegals can negotiate accident benefits settlements for parties under disability
- UK · UKSC Backs insurer against Spain and France in Prestige oil spill arbitration case
Legora adds Blue J tax research to its platform through MCP integration
Legora and Toronto-based tax research company Blue J on October 19, 2026, launched an integration that lets customers who subscribe to both products query Blue J from inside Legora and get answers with inline citations to Blue J sources. Built on the Model Context Protocol, it opens first to selected joint customers in early access, with general availability planned for November. Legora said it is not moving into tax.
Announcement (Artificial Lawyer) → · LawSites
New York raises volunteer firefighter and ambulance worker tax credit to $800, $1,600 for joint filers
New York enacted A.6790-A/S.6233-A on October 17, 2026, amending Tax Law section 606 to raise the personal income tax credit for active volunteer firefighters and volunteer ambulance workers from $200 to $800, and from $400 to $1,600 for spouses filing jointly who both qualify. The bill text applies the higher credit to taxable years beginning on or after January 1, 2026, and the act takes effect April 1, 2027.
Enrolled text (New York State Senate) → · EIN Presswire, Orleans Hub, Rochester Democrat and Chronicle
Michigan suspends dyed-diesel road bans for farm and logging vehicles through December 31
Governor Gretchen Whitmer signed Executive Order 2026-15 on October 12, 2026, declaring a statewide state of energy emergency. The order suspends Motor Fuel Tax Act provisions that bar dyed diesel in farm and wood-harvester vehicles on public roads. The suspension is effective immediately and runs no later than December 31, 2026.
Text (State of Michigan) → · Office of Governor Gretchen Whitmer, Brownfield Ag News
State and local law roundup, week ending October 9, 2026: 3 developments
Illinois and Iowa suspended state dyed-diesel penalties for farm hauling this week. Illinois Executive Order 2026-08, filed October 6, bars penalties for farm use of dyed diesel on highways through December 31, 2026; Iowa's October 7 disaster proclamation extends its suspension to livestock and feed loads through February 4, 2027. California's SB 799 (Chapter 980) lets the South Bay Regional Housing Trust fund moderate-income housing from January 1, 2027.
Entries (California Legislative Information) → · Office of the Governor of Iowa, State of Illinois, Office of the Governor
Idaho pauses discretionary dyed-fuel inspections for 30 days under Executive Order 2026-07
Under Executive Order 2026-07, Gov. Brad Little directed the Idaho State Police and the Idaho Transportation Department to stop initiating discretionary dyed-fuel inspections under Idaho Code 49-676 for 30 days, the governor's office said. The two agencies must review inspection policy and send recommendations to the governor. The order does not exempt drivers from federal law, other states' laws or warranty terms.
Text (Office of the Governor of Idaho) → · Office of the Governor, Gem State Chronicle
Maryland lets farm and forestry haulers use dyed diesel on public roads without state penalties under EO 01.01.2026.19
Under Executive Order 01.01.2026.19 (Oct. 9, 2026), Gov. Wes Moore declared a state of emergency over diesel prices. Vehicles hauling agricultural or forestry loads may use dyed diesel on public roads without state citations or fines, and fees for 30-day Exceptional Hauling Permits are waived on non-interstate state highways. Federal fuel tax and penalties still apply, and the Comptroller is asked to seek relief from the IRS.
Text (Office of Governor Wes Moore) → · The Equiery
Michigan caps county treasurer electronic parcel-record fees at 30 cents, $2,000 per request
Michigan enacted Senate Bill 102 as 2026 Public Act 112 on October 9, 2026, amending section 1 of 1895 Public Act 161. The act adds subsections (6) to (9) to MCL 48.101 for electronic copies of county treasurer records. A treasurer charges at most 30 cents per parcel record, capped at $2,000 per request, and transmits records electronically in a delimited, open-standards format.
Missouri suspends dyed-diesel highway ban for any purpose under Executive Order 26-20
Under Executive Order 26-20 (Oct. 9, 2026), Gov. Mike Kehoe suspended enforcement of Missouri's on-highway dyed-diesel ban (RSMo 142.932) and its penalties for any purpose. No state agency or officer may assess penalties under that section. The order replaces EO 26-19 and keeps a 90,000-pound limit for qualifying farm loads on non-interstate roads. It ends Dec. 31, 2026 unless extended.
Text (Missouri Secretary of State) → · Office of Governor Mike Kehoe, KCTV
North Carolina sets motor fuel tax to zero through November 30 under Session Law 2026-62
Session Law 2026-62 (HB 3), signed Oct. 9, 2026, sets North Carolina's motor fuel excise tax to zero from Oct. 10 through Nov. 30, 2026. Fuel cost may not include the suspended tax. Through Dec. 31, the Revenue Secretary may not penalize farm use of dyed diesel in highway vehicles. The State Controller must make monthly hold-harmless transfers from the Stabilization and Inflation Reserve; forgone revenue is estimated at $362.3 million, Brooks Pierce reported.
Enrolled text (North Carolina General Assembly) → · Governor Stein (governor.nc.gov), Brooks Pierce Capital Dispatch
Reynolds widens dyed-diesel penalty suspension to livestock and other farm products
Iowa Gov. Kim Reynolds signed a disaster emergency proclamation on October 7, 2026, suspending the dyed-fuel restrictions in Iowa Code sections 452A.74 and 452A.74A(1) for motor vehicles hauling soybeans, corn, livestock, livestock feed, soybean meal, fertilizer and other farm products, and suspending sales and fuel tax provisions on that fuel. The proclamation, which expands an earlier proclamation, took effect immediately and expires February 4, 2027.
Kentucky suspends dyed-diesel road-use ban and state penalties under Executive Order 2026-667
Under Executive Order 2026-667 (Oct. 7, 2026), approved by Attorney General Russell Coleman in AG Order 2026-07, Gov. Andy Beshear declared a state of emergency and suspended Kentucky's ban on using untaxed or dyed diesel on public roads (KRS 138.502(1)-(3)) and its state penalties, effective Oct. 8. The AG's approval limits the suspension to a period consistent with KRS 39A.090(2), generally 30 days; federal dyed-diesel rules still apply.
Text (Office of the Governor of Kentucky) → · Kentucky Lantern
Illinois suspends dyed-diesel road penalties for farm use through December 31
Illinois Gov. JB Pritzker signed Executive Order 2026-08 on October 6, 2026, directing the Department of Revenue and State Police not to impose state penalties for the sale or on-road use of dyed diesel for farming and agricultural purposes through December 31. Users must keep records of plates, gallons, fill-up dates and agricultural use for four years. Pritzker also declared all 102 counties disaster areas for 30 days.
Text (Illinois Department of Revenue) → · Office of Governor JB Pritzker, NPR Illinois
Trump order directs Treasury to weigh diesel tax deferral and waive dyed-diesel highway penalties
President Donald Trump signed Executive Order 14435 on Oct. 5, directing the Treasury secretary to decide within five days whether 26 U.S.C. 7508A allows deferring certain diesel fuel taxes incurred Oct. 5 through Dec. 31, 2026, without penalties or interest, and to have the IRS announce it will not impose penalties for highway use of dyed diesel in that period. The order also asks Treasury to explore eliminating the deferred tax.
Text (Federal Register) → · The White House, TheTrucker.com
State and local law roundup, week ending October 2, 2026: 23 developments
Twenty-three state and local measures dated September 25 to 29, 2026. California enacted laws on prescribed fire, children's meals, added-sugar menu warnings, diaper ingredients, disposable vapes, supplement sales to minors and disability-form fees. North Dakota, Texas, Arkansas and Georgia issued fuel emergency orders. New Jersey and New York signed school, reentry, Rutgers and climate bills, Massachusetts set emergency adult foster care rates, and San Jose paused detention-facility applications.
Entries (California Legislative Information) → · North Dakota Office of the Governor, City of San Jose, Office of the City Clerk (Legistar), Office of the Texas Governor +6
DeWine signs 90-day suspension of Ohio's gasoline and diesel fuel taxes
Gov. Mike DeWine signed House Bill 519 on Oct. 1, cutting Ohio's 38.5-cent gasoline tax and 47-cent diesel tax to one-hundredth of a cent per gallon for about 90 days starting Oct. 4. Retail and motor fuel dealers must pass the full reduction on to buyers. The act, passed Sept. 30 with an emergency clause, appropriates $725 million from the General Revenue Fund to replace lost revenue.
Enrolled text (Ohio General Assembly) → · Ohio Legislature, Land Line Media
Reynolds signs HF 2801 raising Iowa MEGA tax credit to 10% for steel mill
Governor Kim Reynolds signed House File 2801 on October 2, 2026, hours after the Iowa House approved it 75-17 and the Senate 28-19 in a special session. The law raises the Major Economic Growth Attraction program's investment tax credit from 5% to 10% for one business in a rural county, paid over ten years. It clears the way for Mesabi Metallics' planned $15 billion steel mill in Lee County, with state incentives officials estimate at $1.36 billion.
Enrolled text (Iowa Legislature) → · Office of the Governor of Iowa, The Des Moines Register, Bleeding Heartland
Indiana governor extends gas tax suspension through Nov. 4
Indiana Governor Mike Braun signed Executive Order 26-33 on September 30, 2026, renewing the state's energy emergency for 30 days, Oct. 6 through Nov. 4, in all counties. The Gasoline Use Tax and Gasoline Excise Tax are suspended for that period, and the Department of Revenue must not collect them. WDRB reported it is the sixth extension of a holiday that began in April.
Text (Office of the Governor of Indiana) → · Indiana Capital Chronicle, WDRB
Indiana governor signs EO 26-34 letting farmers run road trucks on dyed diesel
Indiana Governor Mike Braun signed Executive Order 26-34 on September 30, 2026, suspending the special fuel restriction in Ind. Code § 6-6-2.5-62(c) for farmers and timber harvesters for the duration of the state energy emergency, now renewed through Nov. 4. They may run untaxed dyed diesel in highway vehicles for farm and timber work; motor carrier safety rules other than hours of service still apply.
Text (Office of the Governor of Indiana) → · Indiana Capital Chronicle
California pilots partial property-tax exemption for moderate-income rental housing
Governor Gavin Newsom signed AB 1294 on September 29, 2026. It adds subdivision (h) to Revenue and Taxation Code section 214, a pilot partial welfare exemption equal to the value of rental units serving low- and moderate-income households. It covers properties in Alameda County, Sacramento County or San Francisco where units are newly built, or converted from commercial use, between January 1, 2027, and January 1, 2030.
Enrolled text (California Legislative Information) → · Office of the Governor
California imposes 25% annual tax on private detention facility operators from 2028
Governor Gavin Newsom signed AB 1633 on September 29, 2026. The Private Detention Facility Tax Law, Revenue and Taxation Code section 53000 and following, imposes an annual tax on private detention facility operators equal to 25% of their California-derived gross income, beginning July 1, 2028, whether the contracting agency is federal, state or local. The CDTFA administers the tax, and revenue goes to the Due Process for All Fund.
Enrolled text (California Legislative Information) → · Office of the Governor
California extends property-tax welfare exemption for conservation lands through 2032
Governor Gavin Newsom signed AB 1668 on September 29, 2026, as an urgency tax levy that took effect immediately. It amends Revenue and Taxation Code section 214.02 to keep the property tax welfare exemption for land used exclusively to preserve native plants, animals and open space through the 2032 lien date, with repeal on January 1, 2033. The state will not reimburse local agencies for lost revenue.
Enrolled text (California Legislative Information) → · Office of the Governor
California lets HCD shift residual receipts between developments of the same sponsor
Governor Gavin Newsom signed AB 2020 (Chapter 795, Statutes of 2026) on September 29, 2026. New Health and Safety Code section 50406.4.5 lets the Department of Housing and Community Development, in its sole discretion, transfer its residual receipts share or excess reserves from one HCD-regulated rental development as equity to another owned by the same sponsor or an affiliate. Transfers may not impair other lenders' payment rights or leave replacement reserves below $1,000 per unit.
Enrolled text (California Legislative Information) → · Office of the Governor
California limits ADU impact fees to floor area above 750 square feet
Governor Gavin Newsom signed SB 1117 on September 29, 2026. It amends Government Code section 66311.5 so that, for up to two accessory dwelling units on a lot, impact fees on an ADU larger than 750 square feet are charged proportionately and only on the area above 750 square feet. ADUs up to 750 square feet and junior ADUs up to 500 square feet remain exempt from impact fees.
Enrolled text (California Legislative Information) → · Office of the Governor
California denies charitable property-tax exemption to detention facilities
Governor Gavin Newsom signed SB 420 on September 29, 2026. It adds Revenue and Taxation Code section 214.12, providing that property operated as a detention facility is not exempt from property tax as religious, hospital, scientific, or charitable property for purposes of the welfare exemption. The bill is declaratory of existing law.
Enrolled text (California Legislative Information) → · Office of the Governor
Treasury and IRS issue temporary Trump Accounts regulations with automatic enrollment
The Treasury Department and the IRS issued temporary regulations (T.D. 10056), effective Sept. 30, for Trump Accounts, the tax-favored savings accounts for children under section 530A. On or about Oct. 1, Treasury will elect to open 'auto accounts' for eligible children who lack one, held in a master group trust until a guardian claims them. The rules also set requirements for qualified general contributions, including gifts of publicly traded stock.
Text (Federal Register) → · Thomson Reuters Tax & Accounting, Journal of Accountancy, Wealth Strategies Journal
California AB 2222 creates tax credits for local journalism jobs
Governor Gavin Newsom signed AB 2222, the Community NEWS Act, on September 30, 2026. For taxable years 2027 through 2031, qualifying local news outlets may claim a refundable credit of $20,000 for each of up to five full-time journalists, $15,000 for each additional full-time journalist, $7,500 per part-time journalist and an extra $15,000 per new position. Outlets must carry media liability insurance and publish an error-correction policy.
Enrolled text (California Legislative Information) → · Office of Governor Gavin Newsom, Palo Alto Online (CalMatters)
Missouri governor signs EO 26-19 letting farm haulers use dyed diesel and heavier loads
Missouri Governor Mike Kehoe signed Executive Order 26-19 on September 30, 2026, declaring a state of emergency and suspending enforcement of the motor fuel restrictions in Section 142.932, RSMo, so vehicles used strictly for agricultural purposes may run on dyed diesel on state highways and local roads, but not interstates. Six-axle farm combinations may carry up to 90,000 pounds. The relief runs through October 30.
Text (Missouri Secretary of State) → · Office of Governor Mike Kehoe, Missouri Farm Bureau
Law roundup: seven FAA airworthiness directives, IRS and HUD fee changes, Nebraska harvest weight relief
Sixteen federal rules and notices published September 24 to 28, plus one Nebraska executive order. They include seven FAA airworthiness directives and new IFR altitudes, an IRS estate tax closing letter fee rising from $56 to $76, a 1.05% HUD Section 108 guarantee fee for fiscal 2027, PHMSA's adoption of ASME Section XII for transport tanks, FTC rules of practice changes, and Nebraska's 90-day, permit-free 25% weight allowance for harvest haulers.
Entries (State of Nebraska, Office of the Governor) → · Federal Register
California grants property tax exemption to disabled-veteran homeowners
Governor Gavin Newsom signed SB 296 on September 28, 2026. For lien dates from January 1, 2027 through December 31, 2031, it exempts 50 percent of the first $1 million in value of the principal residence of a 100 percent disabled veteran, rising to 100 percent for claimants under a household income limit, and extends the exemption to eligible unmarried surviving spouses. As a tax levy, the act took effect immediately.
Enrolled text (California Legislative Information) → · Office of the Governor
Stephenson Harwood hires Jennifer Lavelle from Clyde & Co and Nicola Simmons from Mishcon
Stephenson Harwood hired Jennifer Lavelle as a London commercial litigation partner from Clyde & Co and Nicola Simmons as a London private wealth partner from Mishcon de Reya, the firm said on September 28, 2026. Global Legal Post reported both moves on September 29. Lavelle is a marine insurance specialist; Simmons is a chartered tax adviser focused on personal and corporate tax.
Announcement (Stephenson Harwood) → · Bloomberg Tax, The Global Legal Post
California requires short-term rental platforms to report listings to tribes on request
California enacted the Short-Term Rental Facilitator Act of 2026 (SB 594, Chapter 456, Statutes of 2026), adding Government Code sections 50997 to 50997.3. Where a federally recognized tribe adopts an ordinance applying the chapter, short-term rental facilitators must, on request, report each listing’s address and nine-digit ZIP code, with parcel numbers and URLs when needed to identify the rental. Tribes may fine non-reporting under tribal law. Signed September 25, 2026, it takes effect January 1, 2027.
Enrolled text (California Legislative Information) → · Governor of California
Nebraska declares fuel emergency, allows untaxed dyed diesel on highways
Governor Jim Pillen signed Executive Order 26-21 on September 24, 2026, declaring a statewide emergency over distillate fuel shortages. For 90 days, registered highway vehicles may hold and use untaxed dyed diesel without state penalty, sales of the fuel to those operators are permitted, the Tax Commissioner must seek IRS penalty relief within three business days, and diesel taxes on Nebraska agricultural hauling are refundable via Form 84AG.
Text (State of Nebraska, Office of the Governor) → · Office of Nebraska Governor Jim Pillen
K&L Gates adds state and local tax partner Jeffrey Reed in New York from Kilpatrick
Jeffrey Reed joined K&L Gates as a New York corporate partner focusing on state and local tax controversies and planning, Bloomberg Tax and the firm reported on September 22, 2026. A former Massachusetts Department of Revenue litigator, he joins from Kilpatrick Townsend & Stockton and advises on multistate controversies, unclaimed property, and M&A state-tax consequences.
Announcement (Bloomberg Tax) → · K&L Gates
Paul Weiss adds Weil PE co-head Christopher Machera and five-lawyer transactional team in New York
Paul, Weiss expanded its private equity practice with a six-lawyer transactional team led by Christopher Machera, who joined as a New York partner in the Private Equity M&A Group from Weil Gotshal & Manges, where he co-headed private equity, Pulse2 and Law360 Pulse reported on September 22, 2026. Timothy Burns, Noah Beck, Amanda Rotkel, Andrew Lawson, and Dylan Hans are expected to join in the coming weeks across PE M&A, tax, and executive compensation.
Announcement (Pulse2) → · Law360 Pulse, Paul, Weiss
Milbank adds former O’Melveny tax chair Alex Anderson as New York partner
Milbank LLP announced on September 22, 2026 that Alex Anderson joined its New York Tax Group as a partner from O’Melveny & Myers, where he had chaired the tax practice, International Tax Review and Pulse2 reported. Anderson’s practice covers U.S. federal income tax in restructurings, financings, securitizations, M&A, fund formation, and entertainment and media transactions.
Announcement (International Tax Review) → · Milbank, Pulse2
California creates a tax credit for film and television post-production work performed in the state
Governor Gavin Newsom approved AB 2319 on September 19, 2026, creating a new California tax credit for post-production of qualified motion pictures. The credit equals 35% of qualified editorial post-production expenditures for taxable years beginning on or after January 1, 2027, with per-project caps of $6 million for non-visual-effects work and $6 million for visual effects, plus uplifts for out-of-Los-Angeles-zone work, music scoring, and in-state principal photography.
Enrolled text (California Legislative Information) → · Office of the Governor of California
California extends film credit carryforward to 15 years and raises refunds to 95 percent under SB 186
Governor Gavin Newsom signed SB 186, a budget trailer bill, on September 19, 2026, as Chapter 344 of the Statutes of 2026, effective immediately. It extends the carryforward period for motion picture credits 2.0 and 3.0 from 9 to 15 years. It raises the refundable amount under motion picture credit 4.0 from 90 to 95 percent, payable over two years, and, for taxable years from January 1, 2027, exempts sold credits from the $5 million business credit limit.
Trump signs disaster tax relief act on casualty losses and wildfire payments
President Trump signed the Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366) on September 11, 2026. The law adds Internal Revenue Code section 165(h)(6), letting taxpayers deduct qualified disaster-related personal casualty losses from major disasters declared from December 28, 2019 through 2026 without itemizing, subject to a $500 per-casualty floor, for taxable years beginning after December 31, 2024. New section 139M excludes qualified wildfire relief payments from gross income for taxable years beginning after December 31, 2025.
Enrolled text (GovInfo (enrolled bill text)) → · The White House, Congressman Jimmy Panetta