On September 10, 2021, the California Department of Tax and Fee Administration (the CDTFA) proposed amendments to the CDTFA’s regulations governing drop shipments, in an effort to clarify that marketplace sales are not drop shipments. In October 2019, the California Marketplace Facilitator Act became effective, making marketplace facilitators the seller and retailer for sales facilitated
California bill extending marketplace facilitator collection requirements to certain fees sent to governor
On September 9, California AB 1402 was enrolled and presented to Governor Newsom for his signature. The legislation requires marketplace facilitators to register, collect, and remit specified fees administered under the Fee Collection Procedures Law that are imposed upon the retail sale of tangible personal property in the state. Specifically, the legislation requires marketplace facilitators
City of Santa Barbara franchise fee not a local tax subject to Proposition 218 protection
The California Court of Appeal, Second Appellate District ruled that the franchise fee, including a surcharge imposed by electric utility Southern California Edison (SCE) on its customers in Santa Barbara, pursuant to SCE’s agreement with the city, was not a tax requiring voter approval under Proposition 218. Dating back to 1959, SCE has had franchise
Catching up with CalTax – part I
In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay is joined by Rob Gutierrez, President and CEO of the California Taxpayers Association (CalTax).
Rob provides an overview of CalTax and its mission, and then expands the discussion to California’s latest legislative session and how it was
Webcast: How the events of 2021 have impacted the California tax landscape so far
In a world and state already riddled with uncertainty, California holds a recall election. Through it all, however, taxes remain a constant.
On September 15, join Eversheds Sutherland attorneys Tim Gustafson and Eric Coffill as they cover key tax events that occurred in California during the first three quarters of 2021 and how the recall
C’est la vie: Nonresident must pay California tax on community income earned by resident spouse
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
Know when to fold ‘em – OTA rules taxpayers residents of California despite renting apartment in Nevada
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
Six and counting: California Franchise Tax Board holds another interested parties meeting on proposed market-based sourcing regulations
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:
- A definition of “asset
Transfer pricing and its effects on state tax
In this episode of the SALT Shaker Podcast, host and Associate Chris Lee is joined by Associate Justin Brown to discuss transfer pricing and how it affects state tax and in particular how states may use transfer pricing or other theories to make adjustments to sales tax. Recently, some jurisdictions have challenged sales tax on
California Franchise Tax Board to Hold Sixth Interested Parties Meeting on Proposed Market-Based Sourcing Regulations
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