In The Marketplace
Highlights of the latest equipment leasing news from around the country.
Proposed 4% Lease Tax Would Raise Cost of Leasing in Chicago
Cook County Illinois Board President John Stroger has proposed a new 4% lease tax. This tax is modeled on the Chicago Transaction Tax, which shifts the imposition from the lessee to a flat 4% tax on lessors (including nonpossessory lessors) receipts. The State Government Relations Committee Chair of the Equipment Leasing Association, Valerie Pfeiffer of CIT, reports that under this proposed tax, the only exempt lessors are governmental bodies, and lessors that are organized and operated exclusively for charitable, educational or religious purposes. The ordinance provides no exemption for government or other typically exempt charitable, educational or religious lessees.
The Progressive Lawyer
We can all stand to improve the way we practice the non-adversarial, settlement-oriented part of our profession by paying attention to the way we employ the principles of advocacy and inquiry.
The Fundamentals of Political Risk Insurance
Political Risk Insurance protects an insured from financial losses as a result of unpredictable actions by host governments, especially in emerging countries or in unstable environments. It has become a vital part of risk management for global enterprises involved in international business, finance and investments.
Litigation
Recent decisions of importance to you and your practice.
The Costs of Code Upgrades
When a property is physically damaged by some insurable event — such as a flood or fire — laws or ordinances that were not in place when the original property was first constructed must be considered in the repairing or rebuilding of that property. After Hurricane Andrew in 1992, for example, Dade County Florida required that ruined houses be rebuilt in compliance with stricter severe-weather standards than the damaged houses had previously exhibited. These upgrade requirements must be reconciled with replacement-cost insurance for property owners, which puts the insured in the <i>same</i> position, with the same quality of property, as existed before the insured event — not in a <i>better</i> position, with a higher quality of property (<i>eg,</i> a stronger roof, better ventilation, wider egresses, and the like). Consequently, courts, insurers and insureds need to resolve the question of which party pays the costs of compliance with changed construction codes.
Case Briefs
Highlights of the latest insurance cases from around the country.
Undifferentiated Support Orders: Can They Be Taxable Alimony?
The income tax effect of cash payments made by one spouse in a divorce proceeding to the other is determined under section 71 of the Internal Revenue Code. To be taxable to the recipient of the payments as alimony, and deductible by the payor, the payments must meet the four requirements of section 71(b)(1). Of these requirements, the one that has caused the most difficulty is found in section 71(b)(1)(D): there can be "no liability to make any such payment after the death of the payee spouse ... " nor can there be any liability to make a substitute payment.
Massachusetts and Same-Sex Marriages: An Update
As reported on these pages late last year, on Nov. 18, 2003, the Massachusetts Supreme Judicial Court decided <i>Goodridge v. Department of Public Health</i>, holding, in a 4-3 decision, that the denial of marriage licenses to same-sex couples in the Commonwealth of Massachusetts violated the state's constitution.
