Law360: 3 Questions State Tax Pros Have About The Pandemic Relief Law
media mentionPolicymakers and state tax specialists noticed almost immediately that if states want to take full advantage of the $350 billion cash infusion the ARPA gives state and local governments, it appears they are going to have to give up some autonomy. While those who spoke to Law360 said only explicit guidance from the U.S. Treasury, which is still forthcoming, can make it completely clear, the consensus is the law appears to prevent states from cutting taxes. If states do cut taxes, starting from March 3 of this year up until the time that the stimulus money is spent, they will be required to give up the equivalent amount in stimulus, state tax professionals said.
“I think this is a big deal,” Carl Davis, research director for the Institute on Taxation and Economic Policy, told Law360. “It has the potential to dramatically reshape state tax debates for the next couple of years.”