Will New York State renew a lucrative housing tax break? The tax incentive, designed to encourage the development of multifamily dwellings in New York City, has not been available for 18 months. Advocates of the provision say that without it, rental units could be replaced with luxury condos, requiring more spending on subsidized housing for the city’s lowest-income residents. Opponents say it’s a giveaway to the already lucrative real estate industry. Politico reports on the prospects for renewal.  

Twenty-five-year sentence for $1.4 billion in tax fraud. Jack Fisher was sentenced to 25 years in prison after being found guilty of selling $1.4 billion in fraudulent charitable deductions to wealthy investors, cheating the federal government out of $458 million in taxes. Fisher and his accomplices used exaggerated appraisals of land in syndicated conservation easements, guaranteeing investors charitable deductions. As of 2022, charitable deductions for conservation easements are limited to 2.5 times the amount a person invests. Syndicated conservation easements are now banned. 

Kansas starts a new legislative session with tax cut talk. Democratic Gov. Laura Kelly has proposed a bipartisan tax reform plan, but House Republicans haven’t embraced it. Rather, they plan to debate the potential benefit of moving to a single, flat individual income tax rate.

California lawmakers are considering a wealth tax this week. With California facing a daunting budget deficit, and the State Assembly’s Revenue and Taxation Committee is reviewing a bill (Assembly Bill 259) that would impose a 1.5 percent tax on assets of California residents who have a net worth of $1 billion, as well as a 1 percent tax on assets on Californians with a net worth of $50 million (starting in 2026). The committee is holding a hearing on the bill today.

Michigan’s staged repeal of tax on retirement pensions is in effect, but some seniors want immediate relief. The Lowering MI Costs plan was signed into Michigan law last month. It rolls back the retirement tax enacted under Republican Gov. Rick Snyder and increases the working families tax credit. The phaseout of the retirement earnings tax would be implemented over the next four years, but Democratic Lt. Gov. Garlin Gilchrist is hearing from retirees who’d like quicker relief. 

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