Tax publication

Financial Services State and Local Tax Newsletter February 2026 / Vol 38

Publication
7 minute read
February 04, 2026

In this issue

Welcome to our annual year-in-review issue, where we highlight some of the most impactful state and local tax developments for asset managers over the past year and what they mean as you plan for 2026.

One development that’s easy to overlook but could have very real compliance consequences is the US Postal Service’s updated postmark procedures, effective December 24, 2025. Because postmarks may now be applied at a regional processing center rather than the local post office where mail is dropped off, the postmark date may be later than the date the USPS takes possession of an item. For filings and payments where timeliness is determined by the postmark date, that disconnect creates risk, especially when something is mailed close to a deadline.

We’re also looking ahead to several changes that will start in 2026, including California’s finalized market-based sourcing rules and other state developments affecting both business and individual taxpayers. Between continued momentum toward market-based sourcing and single sales factor sourcing and evolving pass-through entity tax (PTET) regimes, this is a good moment for asset managers to reassess footprint, documentation, and reporting positions as part of 2026 planning.

Thank you for your continued readership and collaboration. We look forward to partnering with you in the year ahead.

Best regards,
Caragh DeLuca