Missed These 2025 SALT Updates? Time to Take Notes
State and Local Tax (SALT) attorneys Jennifer Karpchuk and Olivia Klein co-authored an article for Tax Notes State recapping notable developments in SALT practice in 2025. The article opens by analyzing continued issues surrounding P.L. 86-272; the authors look at proposed regulations in New York, New Jersey and Massachusetts responding to the Multistate Tax Commission's (MTC) revised guidance on the law and addressing the tax implications of business transactions conducted over the internet under it. They then turn to the U.S. Supreme Court's decision holding that Wisconsin discriminated against Catholic Charities by denying it an unemployment tax exemption and explain the ruling's implications for other nonprofit charitable organizations facing questions of religious neutrality in tax exemptions. Ms. Karpchuk and Ms. Klein conclude their piece by reviewing a sourcing dispute before the Massachusetts Supreme Judicial Court and the Pennsylvania Supreme Court's determination that Pittsburgh's "jock tax" violated the state's uniformity clause by unconstitutionally discriminating against nonresidents.