California has enacted one of its most significant sales tax changes in decades, expanding the state’s sales tax base to include electronically delivered and remotely accessed software. In this episode of the SALT Shaker Podcast, hosts and Partners Jeremy Gove and Chelsea Marmor are joined by Partners Michele Borens and Charlie Kearns, both of whom
In The Retail Property Trust v. Orange County Assessment Appeals Board No. 1, the California Fourth District Court of Appeal affirmed the denial of property tax disaster relief to the owner of the Brea Mall, holding that neither COVID-19-related closure orders nor the virus itself constitute the “physical damage” required for calamity reassessment under Revenue
The California Court of Appeal held that a Texas radiologist did not owe California personal income tax because it did not operate a unitary business in the state. During the years at issue, a medical corporation sent the Texas radiologist imaging studies collected at medical facilities in other states, including California. He then read the
The California Legislature may vote today on the Governor’s tax provisions, including sales tax on software. For additional background, see materials from our recent webinar on the proposal. The state Constitution requires the Legislature to pass a budget bill by June 15 at midnight. The Constitution also requires that a bill be in print for
The California Office of Tax Appeals held that storing inventory at a third-party warehouse constitutes “doing business” for income and franchise tax purposes.
The taxpayer was a Pennsylvania-based corporation making online sales of apparel through a third-party digital marketplace. The taxpayer also contracted with the marketplace to hold and ship inventory from warehouses (fulfillment centers)
California adopted UDITPA in 1966, with its equally weighted three-factor formula for apportioning multistate income – property, payroll, and sales. Over time, however, the sales factor has emerged as the primary mechanism for determining tax liability in California.
Today, California’s sales factor is the same as it was nearly 60 years ago. Although the fraction
Is this the year for updated conformity? Will FTB and CDTFA finalize long-awaited regulatory amendments? What key tax cases are pending in California courts and what hangs in the balance?
On August 20, join Eversheds Sutherland attorneys Tim Gustafson and Eric Coffill as they try and answer these questions and more in this California tax
Closing out a process that began nearly nine years ago, the California Franchise Tax Board (FTB) recently submitted proposed amendments to its market sourcing regulation, California Code of Regulations, title 18, section 25136-2, to the Office of Administrative Law (OAL) for final approval. The version submitted to OAL includes the same simplifying presumptions for sourcing
A California appeals court held that taxpayers challenging city fees as unconstitutional without seeking a refund need not exhaust their administrative remedies. The taxpayers alleged that the City of Azusa’s sewer and trash franchise fees violated Proposition 218, Article XIII D of the California Constitution because the fees exceeded the cost of providing those services
The California Franchise Tax Board’s method of taxing banks and financial institutions is consistently complex, and a bit messy. This complexity would worsen under the January budget proposal of California Governor Gavin Newsom to tax banks (and savings and loans) using single-sales-factor apportionment.
In this installment of “A Pinch of SALT” published by Tax Notes
