Tax publication

Financial Services State and Local Tax Newsletter - Vol 37

Publication
10 minute read
October 31, 2025

In this issue

As we close out another compliance season, this is a valuable time to take stock of the latest state tax developments and their potential impact on your asset management business as you prepare for year-end.

This quarter brings several noteworthy changes across key jurisdictions. California finalized long-anticipated amendments to its market-based sourcing regulation, bringing new clarity, and in some cases retroactive application, to how management fees and other service revenues are sourced. At the same time, Illinois and New Hampshire announced tax amnesty programs, while New Jersey launched a pilot mediation program designed to resolve tax controversies more efficiently. States such as Maine, Pennsylvania, and Washington, D.C. also have new or revised pass-through entity tax proposals, reflecting the ongoing evolution of SALT deduction workarounds.

As we move toward year-end, our focus turns to planning, assessing the implications of these developments, identifying filing or refund opportunities, and focusing on readiness for 2026 changes. We hope this issue provides timely insights to support your state tax strategy in an increasingly complex landscape.

Best regards,

Caragh DeLuca