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State & Local Taxation

Fall 2004

 

SYLLABUS

 

Mon. 8:30-10:00                                                                      Prof. Peter Enrich

Wed. 8:30-10:00                                                                      Rm. 79 Cargill

617-373-5094

                                                                                                Office Hrs.: Mon. 10:30-12:30

Thurs. 2-4 or

by appointment

 

REQUIRED MATERIALS:

 

Hellerstein & Hellerstein, State & Local Taxation (7th Edition) [hereinafter "H&H"]. 

 

Supplemental Photocopied Materials [hereinafter "PM"], available as a packet from Gnomon Copy.

 

Call the bookstore (617/373-2286) or Gnomon Copy (617/536-4600) to determine if the course materials are available in advance.

 

NOTE:  The assignments listed below are tentative.  Specific assignments and, particularly, the pace at which we move through the materials are subject to change.  All modifications will be announced in class.

 

NOTE: Due to the several Mondays when class will not meet, I have booked make-up classes for the Friday 3:15-4:45 PM reschedule period (Sorry!) on three dates: Dec. 12, Jan. 9, and Jan. 23.  In addition, I have reserved the reschedule period on Feb. 6, in case of snow days.  Please mark these dates on your calendar.

 

 

I. Introduction

 

Class 1 (Sept. 1) -- Course overview and introduction to key concepts

 

READINGS:      H&H pp. 1-17

J.S. Mill, excerpt from Principles of Political Economy (PM pp. 1-9)

Musgrave & Musgrave, excerpts from Public Finance in Theory and Practice (PM pp. 11-16)

O.E.C.D. Statistics on Taxes and GDP (PM p. 17)

Institute on Taxation & Economic Policy, excerpts from Who Pays? (PM pp. 19-43)

Excerpts from Mass. Tax Expenditure Budgets (FY 2004 & FY 1992) (PM pp. 45-72)


 

Class 2 (Sept. 8) -- Introductory Case-study: Education Financing

 

READINGS:    San Antonio Indep. School Dist. v. Rodriguez (U.S. 1973) (PM pp. 73-106)

Dupree v. Alma School Dist. No. 30 (Ark. 1983) (PM pp. 107-12)

H&H pp. 50-55, 62-64

 

 

Class 3 (Sept. 13) -- Education Financing, concluded and generalized

 

READINGS:    Claremont School District v. Governor, I and II (N.H. 1993 and 1997) (PM pp. 113-29)

Missouri v. Jenkins (U.S. 1990) (PM pp. 131-50)

H&H pp. 66-76

Bacchus Imports, Ltd. v. Dias (U.S. 1984) (PM pp. 151-54)

 

 

II.  Property Taxation

 

NOTE: An extra class has been scheduled for Tues. Sept. 14 from 12:15 to 1:45.

 

Classes 4 & 5 (Sept. 14 & 20) B Basic structure and introduction to valuation

 

READINGS: H&H pp. 89-90, 95-98, 102-107

Board of Assessment Appeals v. Colorado Arlberg Club (Colo. 1988) (PM pp. 155-64)

H&H pp. 117-129, 176-182

 

Class 6 (Sept. 22) -- Statutory and constitutional constraints on valuation

 

READINGS: Robert Strauss, Why Homeowners Hate the Local Property Tax (PM pp. 165-69)

H&H pp. 100-102, 107-117

Allegheny Pittsburgh Coal Co. v. County Commission of Webster County (U.S. 1989) (PM pp. 171-73)

Nordlinger v. Hahn (U.S. 1992) (PM pp. 175-85)

 

 

Class 7 (Sept. 27) -- Incidence of the property tax

 

READINGS: H&H pp. 98-100

Henry George, excerpt from Progress and Poverty (PM pp. 187-195)

Henry Aaron, excerpt from Who Pays the Property Tax? (PM pp. 197-208)

Gold & Liebschutz, excerpt from State Tax Relief for the Poor (PM pp. 209-26)


 

III.  Sales Taxes

 

Class 8 (Sept. 29) -- Basic concepts

 

READINGS:    H&H pp. 661-70; 775-77; 790-91

Excerpt from Massachusetts Report on Tax Expenditures (FY 92) (PM pp. 229-232)

Dine Out Tonight Club v. Dept. of Rev. Services (Conn. 1989) (PM pp. 227-228)

H&H pp. 749-53; 777-84

 

Class 9 (Oct. 4) -- Basic structure: exemptions for resale and manufacturing

 

READINGS: H&H pp. 707-717 (through item F); 720-46 (starting with item J on 720).

 

Class 10 (Oct. 6) -- Basic structure and the value-added tax

 

READINGS: Excerpt from U.S. Treasury Dept., Report to the President on the Value-Added Tax (1984) (PM pp. 233-40)

 

Class 11 (Oct. 12) -- Sales taxes on services

 

READINGS: H&H pp. 746-49; 672-700

Excerpt from Massachusetts Report on Tax Expenditures (FY 93) (PM pp. 241-52)

 

Class 12 (Oct. 13) -- Sales taxes on services and e-commerce

 

READINGS: H&H pp. 839-58 [skip discussion of jurisdiction/nexus on pp. 852-54]

Hellerstein & McLure, Sales Taxation of Electronic Commerce: What John Due Knew All Along (PM pp. 253-58)

 

EXERCISE: Problem 1 (PM pp.  259-65)

 

Class 13 (Oct. 18) -- Nexus and the use tax

 

READINGS: McLeod v. J.E. Dilworth Co., General Trading Co. v. State Tax Comm=n, and International Harvester Co. v. Dep=t of Treas. (U.S. 1944) (PM pp. 267-74)

H&H pp. 804-17

National Bellas Hess v. Dept. of Rev. (U.S. 1967) (PM pp. 275-79)

H&H pp. 336-54; 863-65; and skim 865-884.

 

 

 

IV.  Income Taxation -- Personal and Corporate


 

Class 14 (Oct. 20) -- Personal Income Taxation

 

READINGS: H&H pp. 887-89

Opinions of the Justices (Mass. 1982) (PM pp. 281-87)

Mass. Taxpayers Foundation v. Secretary of Administration (Mass. 1986) (PM pp. 289-93)

Mass. Initiative Petition 91-22 (PM p. 295)

H&H pp. 895-904, 913-28

 

Class 15 (Oct. 25) -- The Power to Tax Income, cont=d: Corporate Income

 

READINGS: H&H pp. 188-201, 412-14, 454-57, 211-223, 385-403          

 

Class 16 (Oct. 27) -- Corporate Taxation: Apportioning Income

 

READINGS: H&H pp. 418-23, 457-71, 570-84, 479-92

 

Classes 17 & 18 (Nov. 1 & 3) -- Corporate Taxation: Apportionment with Complex Corporations

 

READINGS: H&H pp. 496-533 [Yes, I do want you to stop in the middle of the case!], 433-47, 371-78

 

EXERCISE: Problem 2 (PM pp. 296-97)

 

Classes 19 & 20 (Nov. 8 & 10) -- Business Tax Incentives: Economic, Political and Legal Issues

 

READINGS: P. Enrich, Business Tax Incentives: A Status Report (PM pp. 299-305)

Wall St. Journal article (July 18, 2001) on Toledo (PM pp. 307-08)

H&H pp. 258-89

West Lynn Creamery v. Healy (U.S. 1994) (PM pp. 309-20)

 

 

 

                                                              THE END.