GeTtin' SALTy Podcast

Greenberg Traurig, LLP

GeTtin' SALTy is a podcast hosted by Greenberg Traurig, focusing on state and local tax policy, legislative, regulatory and litigation updates. The GT SALT Practice assists companies in need of state and local tax counsel whether in a single location or multiple locations throughout the United States. With the largest footprint of any law firm in the United States, the SALT Practice has attorneys in 16 of the firm's domestic offices, including California, Colorado, Delaware, Illinois, Florida, New York, Oregon, and Texas. The firm's breadth of experience across the full SALT spectrum allows GT to offer a wide range of services, including counseling and controversy. The team also regularly partners with the firm's nationally recognized Government Law and Policy Practice to help shape the tax law which affects our clients most.

  1. Apr 30

    AB 1790: California's Push to Repeal the Water's Edge Election - Loophole or Sound Tax Policy?

    In this episode of Greenberg Traurig's GeTtin' SALTy podcast, host Nikki Dobay is joined by Peter Blocker, Vice President of Policy at the California Taxpayers Association, and Alan Pasetsky, Owner and Founder of Tax Policy LLC, for an in-depth discussion of California Assembly Bill 1790 - a measure that, if passed, would repeal California's Water's Edge election for corporate income tax purposes. The conversation covers the fiscal and political backdrop driving the bill, including California's projected multi-billion dollar budget shortfall and pressure from the State Employee Union (SEIU) to identify new revenue sources.  The guests discuss the characterization of the Water's Edge election as a "loophole," explaining its long-standing role in state tax policy, its use in the majority of states with combined reporting regimes, and the risks of double taxation and compliance burdens that worldwide combined reporting would create. They also examine the international dimension of the proposal, including a letter signed by eight foreign governments expressing concern about potential double taxation and the prospect of retaliatory trade measures against California businesses.  Peter and Alan outline the opposition coalition being led by CalTax, the legislative path forward through the Assembly Appropriations Committee and the May 14th suspense hearing, the two-thirds vote requirement, and the possibility that the measure could be folded into the budget process.  The episode closes with a look at the longer-term landscape, including the governor's stated opposition to tax increases and the implications for California's upcoming gubernatorial race.

    36 min
  2. Apr 15

    Data Centers and the Sales Tax Misnomer

    In this episode of the GeTtin' SALTy podcast, host Nikki Dobay is joined by Jared Walczak, Senior Fellow at the Tax Foundation and founder of the Walczak Policy Consulting Group, for a focused discussion on the evolving state and local tax treatment of data centers. Jared explains how many states initially structured their favorable treatment of data center equipment as targeted incentives rather than incorporating that treatment into their existing business input exemption structure (i.e., manufacturing/machinery and equipment exemptions).  While the practical effect was largely the same at the time, this framing decision has created significant political and policy complications.  As state revenues have normalized and public sentiment toward data centers has grown more mixed in some communities, those incentives have come under increasing scrutiny -- with lawmakers questioning why the state is "giving away" revenue, a framing that would not arise if the exemption had been built into the standard sales tax framework from the outset. Nikki and Jared discuss the core policy argument: that data center equipment is a classic business input, no different in principle from manufacturing machinery and equipment, and that subjecting it to sales tax runs counter to the foundational design of a consumption-based tax.  They also address the economic stakes, including the capital-intensive nature of data center investment, the regular refresh cycles driven by AI and technological advancement, and the significant local tax revenues these facilities generate through real and personal property taxes. The episode closes with a look at the broader competitive landscape -- including the relevance of foreign VAT regimes -- and a reminder that the question for states is not whether data centers will be built, but where.

    30 min

Ratings & Reviews

3.4
out of 5
5 Ratings

About

GeTtin' SALTy is a podcast hosted by Greenberg Traurig, focusing on state and local tax policy, legislative, regulatory and litigation updates. The GT SALT Practice assists companies in need of state and local tax counsel whether in a single location or multiple locations throughout the United States. With the largest footprint of any law firm in the United States, the SALT Practice has attorneys in 16 of the firm's domestic offices, including California, Colorado, Delaware, Illinois, Florida, New York, Oregon, and Texas. The firm's breadth of experience across the full SALT spectrum allows GT to offer a wide range of services, including counseling and controversy. The team also regularly partners with the firm's nationally recognized Government Law and Policy Practice to help shape the tax law which affects our clients most.

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