In a pending precedential decision, the California Office of Tax Appeals (OTA) held that the true object of a taxpayer’s prenatal imaging business involving elective 3D and 4D ultrasound services is the sale of images captured on tangible medium such as photos, CDs and DVDs. Thus, receipts from such sales are subject to sales
Quick Update: Kansas, California and New York
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a Kansas proposal to enact a marketplace facilitator law, two residency cases from California, and a New York decision concerning sales tax treatment of certain advertising services.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
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.
California OTA Finds Four-Month Work-Related Relocation to Alaska Not Enough to Sever California Domicile
On December 2, 2020, a three-judge panel of California’s Office of Tax Appeals (“OTA”) issued a non-precedential decision ruling that a husband and wife remained domiciled in and residents of California for the 2013 tax year despite the husband leaving the state for an alleged “permanent” job in Alaska that lasted from April to July
You Can Leave California: California OTA Rules Taxpayer Became Nonresident Upon Move to Saudi Arabia
On December 21, 2020, a three-judge panel of California’s Office of Tax Appeals (“OTA”) ruled in a non-precedential opinion that an ophthalmologist successfully abandoned his California domicile and became a California nonresident from May 25, 2013 through December 31, 2013 after moving to Saudi Arabia. For a brief overview of the various legal concepts involved
Strike Two-and-a-Half: California Court of Appeal Holds Voter-Initiated Local Special Taxes Not Subject to Constitutional Two-Thirds Supermajority Voting Requirement (Again)
On January 27, 2021, a California Court of Appeal in the state’s First Appellate District affirmed a San Francisco trial court decision which held the California Constitution’s requirement that local taxes be approved by a supermajority vote does not apply to taxes imposed by voter initiative. This is the second decision out of the First
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,
California Franchise Tax Board Announces 20-Day Comment Period for Alternative Apportionment Regulation Amendments
On December 29, 2020, California’s Franchise Tax Board (FTB) staff announced a twenty-day comment period for four changes to the proposed draft language of its 25137 Regulation (Alternative Apportionment). After the twenty-day comment period expires, FTB staff intends to present the newly revised proposed draft Regulation language to the three member Franchise Tax Board to
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