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SALT top stories of 2015

2015 was notable in large part because of a series of decisions issued by state and federal courts that could pave the way for future resolution of several gray areas in state and local taxation. For example, the U.S. Supreme Court issued several major decisions affecting state and local taxes, including Obergefell v. Hodges and Comptroller of the Treasury v. Wynne. In Obergefell, the Court held that same-sex couples had the right to marry. States that did not recognize same-sex marriage prior to the decision issued guidance on filing returns after Obergefell.

In Wynne, the Court determined that Maryland law was unconstitutional because it failed to allow a credit against county personal income tax for Maryland residents for their pass-through income from an S corporation’s out-of-state activities that was taxed by other states. The costly financial impact of the decision is emerging as Maryland starts issuing refunds. The amount of interest to be paid is unclear and a class action complaint on this issue has been filed.

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