In a forthcoming article in State Tax Notes, Eversheds Sutherland SALT partner Jeff Friedman and associate Dennis Jansen explore the issues with A.B. 2570 – California’s latest attempt to extend the state’s whistleblower statute to tax claims.
The bill is purportedly designed in increase revenues by targeting tax fraud. However, instead of exposing tax
The California Court of Appeal held that California income tax applies to the entire amount of trust income that is derived from California sources, even though a trust is managed in part by a non-resident trustee. The taxpayer had requested a refund on income taxes paid on capital gains, claiming that the income was incorrectly
The California Department of Tax and Fee Administration adopted an emergency regulation to clarify and resolve specified issues with the California Marketplace Facilitator Act (CMFA), as amended. The regulation clarifies, among other things, the registration requirements for marketplace facilitators and marketplace sellers and provides definitions for terms left undefined by the CMFA and relevant
The Ninth Circuit concluded that a plaintiff had standing to continue her lawsuit against a clothing company alleging that the company wrongly failed to pay interest on refunded Alaska sales taxes. After a related lawsuit was filed alleging that sales taxes were incorrectly collected, LuLaRoe, Inc. refunded the plaintiff $531.25 in sales tax charges. The
A California Court of Appeal held that San Francisco may not impose a documentary transfer tax on the value of an existing 41-year leasehold interest upon the sale of the underlying property because the leasehold interest does not constitute “realty sold”. The taxpayer owned a commercial building and agreed to lease the ground floor to
On June 30, 2020, a California Court of Appeal affirmed a trial court decision that held the California Constitution’s requirement that local taxes be approved by a supermajority vote does not apply to taxes imposed by voter initiative. For background on the case and coverage of the trial court’s decision, see our prior Legal Alert
California uses market-based sourcing to apportion sales of other than tangible personal property to the state. Under the governing statute, sales of services are sourced to California to the extent the purchaser of the service receives the benefit in the state.1 Sales of intangible personal property are sourced to California to the extent the
Following up on our recent coverage of the California budget negotiations, on June 29th Governor Newsom signed a package of bills comprising the state’s budget for the 2020-2021 fiscal year. The budget package is composed of the primary budget bills, AB 89 and SB 74, along with numerous budget trailer bills. One trailer
The California Department of Tax and Fee Administration has introduced clarifying proposed regulations for its marketplace facilitator regime. The regulations include definitions of statutory terms and clarify that: the $500,000 sales threshold for a marketplace facilitator includes both facilitated sales and direct sales; marketplace facilitators are required to register for a sellers permit or use
California imposes an income tax on the entire taxable income of state residents. For those individuals seeking to avoid taxation by the state, the question becomes: what makes a California resident for income tax purposes? In this podcast we provide a brief overview of the various legal concepts involved in and tests applied during the
