On January 14, 2021, California’s Supreme Court concluded in Vasquez v. Jan-Pro Franchising Int’l, Inc. (2021) 10 Cal.5th 944, 273 Cal.Rptr.3d 741, 478 P.3d 1207 that its Dynamex decision and its use of the so-called ABC test, later codified after the passage of Assembly Bill 5, applies retroactively. The Vasquez holding subjects taxpayers, potentially even
Nothing Compares 2 RSUs: California OTA Affirms Grant-to-Vest Allocation for Nonresident Restricted Stock Income
California’s Office of Tax Appeals issued a non-precedential decision on the state’s taxation of restricted stock units (RSUs), affirming the Franchise Tax Board’s “grant-to-vest” allocation method. In Appeal of Prince, the OTA approved the FTB’s long-standing position that nonresident income from RSUs should be allocated to California based on the employee’s working days in
Quick Update: California, Wisconsin and Idaho
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a California income tax matter concerning the sourcing of an individual’s income, a Wisconsin corporate income tax matter involving the dividends received deduction, and two Idaho individual income tax decisions addressing domicile.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
Successfully Changing California Residency For Tax Purposes
It goes without saying that an individual is free to move about the country and to change their state of residency/domicile for state income tax purposes. However, that change is potentially complex under the law, especially when an individual who is a longtime resident/domiciliary of California plans to become a nonresident.
In this article for
Quick Update: New York, Illinois and California
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a New York letter ruling concerning sales tax treatment of a database service, a New York Tax Appeals Tribunal decision concerning residency for individual income tax, an Illinois letter ruling addressing sourcing of sales for sales tax and a California Office of Tax
The Ol’ Switcheroo: Franchise Tax Board Now Says a Board Hearing on Alternative Apportionment Petition Not Required to Exhaust Administrative Remedies
At a March 4, 2021 meeting of the California Franchise Tax Board’s (FTB) three-member Board, FTB Staff announced on the record that a Board hearing on an alternative apportionment petition is not required to exhaust administrative remedies. The announcement was made during Staff’s recommendation to the Board to begin the formal regulatory process to amend
California OTA Finds True Object of Elective Ultrasound is the Pictures of the Baby, Not the Service
In a pending precedential decision, the California Office of Tax Appeals (OTA) held that the true object of a taxpayer’s prenatal imaging business involving elective 3D and 4D ultrasound services is the sale of images captured on tangible medium such as photos, CDs and DVDs. Thus, receipts from such sales are subject to sales
Quick Update: Kansas, California and New York
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a Kansas proposal to enact a marketplace facilitator law, two residency cases from California, and a New York decision concerning sales tax treatment of certain advertising services.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
Webcast: 2021 California tax landscape
2020 saw significant state and local tax activity in California.
In this webcast, Eversheds Sutherland attorneys Tim Gustafson and Eric Coffill look ahead into 2021 and what promises to be another unpredictable year in California tax legislation, administration and litigation.
View the presentation slides here.
California OTA Finds Four-Month Work-Related Relocation to Alaska Not Enough to Sever California Domicile
On December 2, 2020, a three-judge panel of California’s Office of Tax Appeals (“OTA”) issued a non-precedential decision ruling that a husband and wife remained domiciled in and residents of California for the 2013 tax year despite the husband leaving the state for an alleged “permanent” job in Alaska that lasted from April to July