Introduced this week, California AB 87 implements Governor Gavin Newsom’s proposed budget plan to allow taxpayers to again fully utilize business tax credits, like the R&D credit, and net operating loss deductions in 2022 (see our previous coverage on Governor Newsom’s proposed budget here). For tax years 2020 to 2022, AB 85 (enacted in
California
California doesn’t need GILTI
In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove is joined by Associate Annie Rothschild for a quick review of GILTI, a 2021 failed California proposal to conform to GILTI and how GILTI has been treated in other states.
They examine the history and purpose of GILTI, and what…
California governor releases proposed state budget, including restoration of currently suspended NOLs and limited tax credits
On January 10, California Governor Gavin Newsom issued his proposed budget for the upcoming fiscal year. Of interest to business taxpayers, the proposal would allow taxpayers to again fully utilize business tax credits, like the R&D credit, and net operating loss deductions in 2022. For tax years 2020 to 2022, AB 85 (enacted in 2020),…
California ACA 11 proposes significant corporate and personal income tax hikes to fund state single-payer healthcare system
On January 5, members of the California Assembly introduced Assembly Constitutional Amendment (ACA) 11. The bill would impose both a new excise tax and a new payroll tax, and increase personal income tax rates to fund universal single-payer health care coverage and a health care cost control system for state residents. These new taxes…
GILTI and California
Currently, there is no California conformity to GILTI, and GILTI is not part of the tax law in California unless and until the California Legislature adopts it.
In this column for the November/December issue of Journal of Multistate Taxation and Incentives, Eversheds Sutherland attorneys Eric Coffill and Annie Rothschild discuss the California Legislature’s recent…
California updates publication for local allocation of Internet sales
The California Department of Tax and Fee Administration (CDTFA) revised its revised Publication 109, Internet Sales to add information relating to local sales taxes. Updated Publication 109 clarifies that online retailers are required to allocate sales among local jurisdictions, either directly or through a “countywide pool.” California generally imposes a 7.25% sales tax (with 1%…
Catching up with CalTax – part II
In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay is joined again by Rob Gutierrez, President and CEO of the California Taxpayers Association (CalTax) for round two of their discussion. Catch up on part one here.
Rob updates Nikki on the final days of California’s…
At California State Court, streaming video providers notch another video service provider fee win
On September 20th, the Los Angeles County Superior Court held that local video service provider fees do not apply to streaming video providers. This decision is consistent with a prior decision by the United States District Court for the District of Nevada, which held that streaming video providers were not subject to Nevada localities’ franchise…
California implements marketplace facilitator fee collection
On September 30, California Governor Gavin Newsom signed AB 1402, which amends California’s sales and use tax law to require marketplace facilitators to register, collect, and remit certain fees on the retail sale of various items of tangible personal property sold in California. Under current law, a marketplace facilitator that facilitates the retail sale…
California legislative session ends with no major tax increase bills
The California Legislature adjourned on September 10 and ended the 2021 legislative session without passing any major tax increase bills during the session. Several proposals were under consideration during the early part of the session, but were not revived before adjournment.
In his article for Financial Advisor Magazine, Senior Counsel Eric Coffill describes important