California AB 71, Proposing Repatriation Income and GILTI Inclusion, is Set for Second Committee Hearing
AB 71 was introduced earlier this year (see our prior coverage here) to provide additional state funding for homelessness programs, derived – in part – from increasing taxes on business income. In March, AB 71 was amended to eliminate steep corporate tax increases. The bill as amended, however, still would require corporate taxpayers that
New York State Advisory Opinion Finds IT Support Services Not Subject to Sales Tax
The New York State Department of Taxation and Finance released an advisory opinion finding the Petitioner’s fee paid for IT support services was not subject to sales and use tax because the only taxable component of the services was delivered to the Petitioner outside of New York. The Petitioner hired a New York-based company to
Successfully Changing California Residency For Tax Purposes
It goes without saying that an individual is free to move about the country and to change their state of residency/domicile for state income tax purposes. However, that change is potentially complex under the law, especially when an individual who is a longtime resident/domiciliary of California plans to become a nonresident.
In this article for
Webcast: 2021 California tax landscape
2020 saw significant state and local tax activity in California.
In this webcast, Eversheds Sutherland attorneys Tim Gustafson and Eric Coffill look ahead into 2021 and what promises to be another unpredictable year in California tax legislation, administration and litigation.
View the presentation slides here.
The California Office of Tax Appeals Looks at Residency
The topic of individuals leaving California, many of them for tax reasons, is a timely one. While some such moves are visible, the vast majority of these departures gather no publicity.
In an article for Bloomberg Tax, Eversheds Sutherland attorney Eric Coffill analyzes several recent decisions from the Office of Tax Appeals to see
California AB 71 Proposes Corporate Income Tax Rate Increase and GILTI Inclusion Rules
On January 13, the authors of California Assembly Bill AB 71, a bill introduced to address the state’s homelessness problem, amended the bill’s provisions to propose an increase to the corporate income tax rate and to establish global intangible low-taxed income (GILTI) inclusion rules.
The bill provides that for taxable years starting January 1,
Your losses may not be lost: Delaware NOL limitation violates state constitution
The Delaware Superior Court granted summary judgment in favor of the taxpayer finding that the Division of Revenue’s limitation on net operating losses violated the state constitution’s uniformity clause and that the Division improperly limited the amount of separate company NOL the taxpayer could claim on its Delaware income tax return to the amount of
Strike Two: Another California Court of Appeal Holds Voter-Initiated Local Special Taxes Not Subject to Constitutional Two-Thirds Supermajority Voting Requirement
On December 17, 2020, a California Court of Appeal in the state’s Fifth Appellate District reversed a Fresno trial court decision, which held the California Constitution’s requirement that local taxes be approved by a supermajority vote applies to taxes imposed by voter initiative. The Fifth District followed in the footsteps of the First Appellate District
Something to Keep an Eye On: Texas Comptroller Says Web-Based Services for Eye Doctors Is Taxable Data Processing
The Texas Comptroller of Public Accounts issued a private letter ruling concluding that several services provided to optometrists and ophthalmologists were subject to sales tax as data processing. Specifically, the Comptroller determined that the taxpayer’s web-based software system, which doctors use to manage patient relationships, schedule appointments, refill prescriptions, and communicate about treatment, is a