State Tax Rules Should Continue Under Loper Bright, Lawyers Say

State revenue agencies shouldn’t shy away from issuing regulations on controversial matters out of fear their efforts will be challenged under the Supreme Court ruling that gutted the Chevron deference doctrine, a senior state tax lawyer said.

The high court’s ruling last year in Loper Bright Enterprises v. Raimondo upends the way courts are instructed to interpret agency rules and guidance statements, but it doesn’t diminish the critical role regulations play in guiding taxpayers and improving tax compliance, said Brian Oliner, general counsel for the Federation of Tax Administrators.

In Loper Bright, the high court overturned the ...