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 State Board of Equalization Does Not Issue Guidance on Property Tax Disaster Relief for COVID-19
In a 3-2 split vote, the California State Board of Equalization (BOE) voted against issuing formal guidance to county assessors regarding mid-year re-assessments due to declines in value caused by the COVID-19 pandemic.
- Similar to a number of other states, California law provides valuation relief for property tax purposes due to calamities, emergencies, and disasters.
California Meets Budget Deadline, Passes Trailer Bill with Tax Increases
On June 15, 2020, the California Legislature passed SB 74, the state budget for the 2020-2021 fiscal year. The California Constitution requires a balanced budget to be finalized by June 15th of each year. SB 74 relies on additional federal aid to balance the budget and only invokes spending cuts if federal aid is
A Cup of Coffee with Peter Blocker, Vice President of Tax Policy at CalTax
This podcast is hosted by Tim Gustafson and features excerpts from the webcast of a casual conversation with Peter Blocker, Vice President of Tax Policy at CalTax. Tim speaks with Peter about his role at CalTax, as well as how the organization is analyzing certain California tax-related legislation, current bills he is following, and the
What Makes a California Resident?
California imposes an income tax on the entire taxable income of state residents. Cal. Rev. & Tax. Code § 17041. For those individuals seeking to avoid taxation by the state, the question becomes: what makes a California resident for income tax purposes? Below we provide a brief overview of the various legal concepts involved in
California Court Approves of Simple Majority Vote for Special Taxes Proposed by Voter Initiative
On May 11, a San Francisco trial court held that the California Constitution allows special local taxes proposed by voter initiative to be enacted with a simple majority vote, in contrast to the two-thirds vote required for special taxes proposed by local government. The ballot initiative in question imposed a $298 per parcel tax and
Who Wants to Take Credit for This? California Proposal Limits Business Tax Credit Usage to $5M per Year
On May 14th, California Governor Gavin Newsom issued his proposed May revision to the state budget for fiscal year 2020-21. The budget proposal included two revenue-raising income tax measures, applicable for tax years 2020 through 2022: (1) limiting the amount of business tax credits a taxpayer can use to $5 million annually, and (2) suspending
“Pay up or shut up”: California Court of Appeal holds that taxpayer must pay up before challenging a tax regulation’s validity
The California Court of Appeal recently held that a taxpayer must pay a tax assessment before seeking a declaration that the regulation giving rise to the tax assessment is invalid. California taxpayers cannot challenge unpaid tax assessments under Article XIII, section 32 of the California Constitution (“Section 32”). Therefore, a taxpayer seeking to challenge an
California May Be First to Allow Employers to File Group Income Taxes for Foreign Workers
On May 18, 2020, the California Assembly Revenue and Taxation Committee unanimously passed Assembly Bill 2660 (AB 2660) out of committee. AB 2660 would allow employers to file income taxes on behalf of their foreign workers, specifically providing for the optional filing of a group return by the employer for electing foreign workers who receive
California False Claims Act Expansion Bill Forges Ahead
On Monday, May 11, 2020, the California Assembly Judiciary Committee approved AB 2570 (Stone), which expands the state’s False Claims Act (FCA) to cover certain tax matters. Specifically, AB 2570 applies the FCA to claims, records, or statements made on or after January 1, 2021, under the Revenue and Taxation Code if damages pleaded