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On May 18, the California Office of Tax Appeals (“OTA”) issued a pending precedential decision holding that community income derived from nonqualified stock options (“NQSOs”) and restricted stock units (“RSUs”) granted to a resident in exchange for services performed exclusively in California and vested while a California resident is taxable California source income to a…

A three-judge panel of California’s Office of Tax Appeals (“OTA”) issued a precedential decision ruling that taxpayers remained domiciled in and residents of California at the time they sold their aviation business despite renting an apartment in Nevada prior to purchasing a home in the same area.

At the time of the sale, the taxpayers…

On June 4, 2021, the California Franchise Tax Board (“FTB”) held its sixth interested parties meeting (“IPM”) to discuss the latest proposed amendments to FTB’s market-based sourcing regulation, Cal. Code Regs., Title 18, Section 25136-2.  At the IPM, FTB staff provided an explanation of the newly-proposed regulation language, which includes:

  1. A definition of “asset

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On Friday, June 4, 2021 at 10:00 a.m. PST, the California Franchise Tax Board (“FTB”) will hold its sixth interested parties meeting (“IPM”) to discuss its latest proposed amendments to the market-based sourcing regulation, Cal. Code Regs., Title 18, Section 25136-2. At the IPM, FTB will discuss and solicit public input on the newly-proposed regulation…

On May 20, 2021, California AB 71 was approved by the Assembly Appropriations Committee. The bill will now head to an Assembly floor vote within the next two weeks.  Please see our previous post here for more information on AB 71’s proposed corporate tax increases, including the inclusion of GILTI and repatriation income of affiliated…

California AB 71 is set for hearing in the Assembly Appropriations Committee tomorrow, May 12, at 9 am.  The Appropriations Committee is typically the final committee to consider a bill before it goes to an Assembly floor vote. Please see our previous post here for more information on AB 71’s proposed corporate tax increases, including…

On April 26, 2021, the California Assembly voted to approve AB 1402, which in addition to sales tax would extend the requirements of a marketplace facilitator law to fees administered pursuant to the California Fee Collection Procedures Law that are imposed on the retail sale of tangible personal property in the state. The bill…

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State taxation of a nonresident employee’s equity award, such as nonqualified stock options (NQSOs) or restricted stock units (RSUs), has long been a thorn in the side of many tax practitioners, payroll departments, and – of course – employees. In Appeal of Prince, California’s Office of Tax Appeals (OTA) recently addressed the state’s taxation…