Last Week in Allyn Tax News (June 5-9)

Extinguish the Tax

On June 1, 2023, the Michigan Court of Appeals approved for publication its earlier decision holding that the annual fire inspection charge assessed on owners of commercial real property and multiunit residential real property located in Detroit is a fee, and not a tax, and so did not violate the state's Headlee Amendment. Section 31 of the Headlee Amendment prohibits units of local government from levying any new tax or increasing any existing tax above authorized rates without the approval of the unit’s electorate. The statute bars a city or village from imposing a tax, other than an ad valorem property tax, on any subject of taxation, unless the tax was being imposed by the city or village on January 1, 1964. The court found that even with the charge at issue being involuntary, that fact alone is not sufficient to overcome the other two factors that the appellant received a benefit and that the fee is proportional. After weighing these factors, the court found that the charges were a fee, and not a tax. Therefore, there were no violations of the Headlee Amendment. The court also held the charges did not violate the city charter or ordinances and there was no cause of action for the appellant's equal protection claim.

 

The Art of Tax

Effective 06/02/2023, Minnesota exempts materials and supplies used in and equipment incorporated into the construction, reconstruction, upgrade, expansion, or remodeling of the River Place Arts, Culture, and Events Center in the city of Warroad, if the materials, supplies, and equipment are purchased after May 31, 2023, and before January 1, 2026. The tax must first be paid and collected and then a refund requested in the same manner provided for projects under Minn. Stat. § 297A.75, subd. 2(7). Refunds for eligible purchases cannot be issued until after June 30, 2023.

 

Unclaimed property services

Unclaimed Property (also known as abandoned or escheat property) is exactly that – money or tangible assets that belong to you but are viewed as “abandoned” because there’s been no activity or contact with you (by the holder) for one year or more.

Every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, several Canadian provinces and a few other foreign countries have active unclaimed property programs in place. Currently, states, federal agencies, and other organizations collectively hold more than $58 billion in unclaimed cash and benefits.

When there are so many nooks and crannies for money to be kept, it’s relatively easy to misplace, forget about, or leave behind property, funds, and other forms of wealth that remain untouched for an extended period… that’s why we are here to help you with your unclaimed property needs.

Using Allyn as your unclaimed property recovery service maximizes your chances of recovery. We save you time and effort, give expert guidance through the claims process, and have access to advanced search tools and databases.

If you would like to learn more about how Allyn can help you claim your unclaimed property, ask an expert here: https://lnkd.in/eMTnUw3y   

 

Farmers Only

L. 2023, H1279 (c. 154), effective 07/01/2023, creates the Florida farm Tax Exempt Agricultural Materials (TEAM) card which allows farmers, whose property has been classified as agricultural or that have implemented agricultural best management practices adopted by the Department of Agriculture and Consumer Services to claim applicable sales tax exemptions on purchases. Eligible farmers may present the TEAM card in lieu of an exemption certificate or affidavit that would otherwise be required. Upon acceptance of the TEAM card, sellers are relieved of the obligation to collect sales tax on exempt sales. Accordingly, the Florida Department of Revenue looks only to the purchaser for recovery of tax if the purchaser was not entitled to an exemption. Also, beginning January 1, 2024, the Department accepts applications for the TEAM Card. Applications are subject to the review and expiration provisions currently applicable to agricultural exemptions.

 

Abandoned Property

Nevada revises the state's abandoned property statutes to make various changes relating to the dates on which certain property is presumed abandoned. The L. 2023, A55 (c. 179) bill also states that a gift certificate that is no longer honored by the issuer is presumed abandoned. The bill further provides that the administrator of unclaimed property (the Nevada State Treasurer) must create and maintain a publicly searchable electronic statewide database on its website that include all information related to the unclaimed property.

 

---

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com