The California Office of Tax Appeals (OTA) held that a taxpayer was liable for use tax on parts used to repair equipment in California before shipping it back to out-of-state customers. The taxpayer is a distributor, retailer, and repairer of endoscopes and other medical devices, and as part of its optional lump-sum maintenance contracts, the
Turnabout is fair play? California Office of Tax Appeals says timeshare developer can’t leave without paying price
The pending precedential Office of Tax Appeal’s (OTA) decision of Appeal of L. Smith, OTA Case No. 20036033 (Dec. 7, 2022) concerned whether California could impose income tax on a nonresident’s distributive share of gain from the sale of an interest in a timeshare developer operating in California as a limited liability company (Timeshare).
POAs & the FTB: Tips & best practices for submitting a Power of Attorney
In this article originally published by CalCPA in the January/February issue of California CPA, Eversheds Sutherland Senior Counsel Eric Coffill provides helpful tips for having a Power of Attorney (POA) submission to California’s Franchise Tax Board accepted the first time and for anticipating problems in using the POA.
Read the full article here.
5 proof of domicile takeaways from Calif. Tax Appeals ruling
A recent significant precedential and unanimous decision by the California Office of Tax Appeals, Matter of the Appeal of Beckwith, provided more guidance on how to determine California domicile and residency for state personal income tax purposes.
In his article for Law360, Eversheds Sutherland Senior Counsel Eric Coffill provides five domicile takeaways and…
Valid check-the-box election: California resident entitled to a stepped-up basis
On August 31, 2022, the California Office of Tax Appeals (“OTA”), in the Matter of the Appeal of B. Housman and B. Pena, held that an Australian software company holder, Housman, and his wife are California residents and Housman is entitled to a stepped-up basis as a result of a valid check-the-box election to be…
Not just Hotel California – OTA finds taxpayer’s ties give rise to California residency
The California Office of Tax Appeals held that a taxpayer was a California resident and domiciliary when he redeemed shares of his Tennessee-based employer in 2012. Accordingly, the taxpayer was assessed additional state income tax on the value of the redeemed shares.
In 2008, the taxpayer moved from California to Tennessee and purchased a home.…
Keep it close and approximate: New rules for market sourcing
Approximately 34 states require market sourcing to source sales of other than tangible personal property. Many states adopted market-sourcing rules in recent years and are only now beginning to finalize regulations regarding their implementation. A number of states have also adopted market-sourcing regulations attempting to provide additional clarity through more detailed rules.
In this installment…
SALT Partners to present at BTI Annual Conference, Annual Meeting of the California Tax Bar and California Tax Policy Conference
This week, Eversheds Sutherland Partners Jeff Friedman, Charlie Kearns and Dan Schlueter will present on a variety of tax topics during the 2022 Broadband Tax Institute Annual Conference in Palm Beach, FL.
Topics will include:
- October 31 − Litigation Trends in State Taxation – Jeff Friedman
- October 31 − State Tax Policy − Charlie Kearns
An interview with BOE Executive Director Yvette M. Stowers
In his latest installment of Across State Lines for Tax Notes State, Eversheds Sutherland Senior Counsel Eric Coffill interviews the executive director of the California State Board of Equalization, Yvette M. Stowers.
Read the full article here.
Something smells like a tax: California Supreme Court says waste management fee may be illegal tax
The California Supreme Court recently held that the City of Oakland’s waste management franchise fees may constitute illegal taxes that fail to meet the state’s constitutional voter approval requirements. Accordingly, the state supreme court upheld the reversal of a trial court decision sustaining the city’s demurrer.
The plaintiffs challenging the fees are owners of multifamily…