On September 1, 2026, the California Department of Tax and Fee Administration (CDTFA) published a Discussion Paper, including proposed emergency regulations (Draft Regulations) that would amend existing sales and use tax regulations and adopt new ones, on the application of the sales and use taxes to digital products. The Discussion Paper is CDTFA’s first
Join us for another California tax update: Once again, we’ve got plenty to discuss
On Wednesday, August 26, 2026, join SALT attorneys Tim Gustafson and Eric Coffill at 3 p.m. ET for another California tax update webinar, where they will examine key California tax developments and what they mean for taxpayers. The discussion will cover a new sales tax on software, important tax cases making their way through the
California OTA confirms severance payments are sourced to a nonresident’s domicile
The California Office of Tax Appeals (OTA) held that severance payments and employer-paid medical premiums received following an employee’s termination constituted income from intangible personal property and were therefore sourced to the taxpayer’s Nevada domicile. The taxpayer, a former California-based bank CEO, was terminated without cause in late 2015, relocated to Nevada around the same
California’s sales tax expansion: What businesses need to know
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
California Court of Appeal holds mall owner not entitled to property tax disaster relief for COVID-19 losses
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
California Court of Appeal holds Texas radiologist not a unitary business
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
California Budget bills incorporate software tax, credit caps
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
Mind the warehouse: California OTA says inventory storage alone can trigger “doing business”
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’s 21st-century sales factor
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
Webinar: Join us for a California Tax Update
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