Tax Law

Recent Posts

An Overview of the California Research and Development Credit
Posted on 9 May 2019 by Eversheds Sutherland LLP

The California research and development credit is frequently a high-ticket item for taxpayers. Indeed, according to the California Franchise Tax Board’s (FTB) 2017 Annual Report, $1,440,103,626 of corporation tax research credits were allowed in... Read More

Podcast: P.L. 86-272 Protection for Deliveries
Posted on 31 Jan 2019 by Eversheds Sutherland LLP

In this podcast , Eversheds Sutherland state and local tax attorney Chris Lee discusses California Technical Advice Memorandum 2018-3 and the application of P.L. 86-272 to deliveries by private trucks. Read More

California FTB Confirms Delivery by Private Vehicles Is Protected Under P.L. 86-272
Posted on 19 Jan 2019 by Eversheds Sutherland LLP

In a Technical Advice Memorandum issued on December 4, 2018, the California Franchise Tax Board (FTB) concluded that delivery of tangible personal property via private truck is a protected activity under P.L. 86-272. However, any activity that goes beyond... Read More

California FTB Chief Counsel Issues Ruling on Financial Corporations and Interest Rate Hedging Contracts
Posted on 20 Dec 2018 by Eversheds Sutherland LLP

On November 2, 2018, the Chief Counsel of the California Franchise Tax Board issued Chief Counsel Ruling No. 2018-01, determining: (1) that a taxpayer servicing mortgages was not a financial corporation for purposes of the corporation franchise tax; and... Read More

California Court of Appeal Affirms that Transactions Involving Out-of-State Title Transfer Are Subject to Local Use Tax, Not Local Sales Tax
Posted on 19 Dec 2018 by Eversheds Sutherland LLP

The California Court of Appeal affirmed a trial court decision finding that transactions involving an Internet retailer headquartered in Brisbane, California, were subject to local use tax, rather than local sales tax, because title in the transactions... Read More

Eversheds Sutherland SALT Scoreboard Publication–Third Quarter 2018
Posted on 1 Nov 2018 by Eversheds Sutherland LLP

This is the eleventh edition of the Eversheds Sutherland SALT Scoreboard, and the third edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT... Read More

Taking Taxpayers for a Ride: California Upholds Mandatory Combined Reporting for Interstate Motorcycle Retailer
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

The California Court of Appeals affirmed a trial court’s holding that the California Franchise Tax Board can require interstate unitary businesses to use combined reporting, even though combined reporting is optional for intrastate unitary businesses... Read More

New California Tax Agencies' Roles Clarified
Posted on 21 Sep 2017 by Eversheds Sutherland LLP

On September 16, 2017, California Governor Jerry Brown signed Assembly Bill 131, a budget trailer bill clarifying a number of provisions related to the roles of California’s two new tax agencies, the California Department of Tax and Fee Administration... Read More

More Taxes Coming in Oregon?
Posted on 27 Dec 2016 by Eversheds Sutherland LLP

By Eric Coffill New Oregon Gross Receipts Tax Proposal. On December 14, 2016, the group behind Measure 97 (which was defeated at the November 2016 general election), released a booklet setting forth its 2017 legislative proposals. The document includes... Read More

California Court of Appeal Holds Doing Business ≠ Any Activity Engaged In for Pecuniary Gain
Posted on 17 Jan 2017 by Eversheds Sutherland LLP

On January 12, 2017, the California Court of Appeal held in a published opinion that a taxpayer passively holding a 0.2 percent interest in a California-based limited liability company (CA LLC) was not “doing business” in the state for purposes... Read More

Sourcing the Ticker Tape: California Ruling Addresses Sourcing of Financial Information Provider's Services
Posted on 29 Feb 2016 by Eversheds Sutherland LLP

By Hanish Patel and Marc Simonetti In a Chief Counsel Ruling, the California Franchise Tax Board (FTB) ruled that, for purposes of determining its sale factor, a financial information provider should source the sales of its information services based... Read More

California Legislative Committee Holds Informational Hearing on Lucent and Administering California's Technology Transfer Agreement Law
Posted on 6 Feb 2017 by Eversheds Sutherland LLP

On January 30, 2017, the California Legislature Assembly Committee on Revenue and Taxation held an informational hearing on “Life after Lucent : Administering California’s Technology Transfer Agreement Law.” The California State Board... Read More

California Declines to Extend Landing-Based Situs Property Tax Rule to All Aircraft
Posted on 30 Nov 2017 by Eversheds Sutherland LLP

By Liz Cha and Carley Roberts The California Court of Appeal held that the entire value of an air taxi company’s jets were subject to the County of Los Angeles 1% personal property tax, despite the fact that the jets spent 40% of their time outside... Read More

Residence Precedence? California State Board of Equalization Considers Issuing Formal Opinion in Taxpayer-Favorable Residency Ruling
Posted on 23 Jun 2015 by Eversheds Sutherland LLP

By Robert P. Merten III and Timothy A. Gustafson The California State Board of Equalization (BOE) has issued a rare ruling on residency topics, finding in favor of individual taxpayers on two issues. First, the BOE found that the taxpayers established... Read More

California BOE Adopts Beneficial Amendments to Sales Tax Exemption for Manufacturing and R&D Equipment Over Department of Finance's Objections
Posted on 8 Jan 2016 by Eversheds Sutherland LLP

By Samantha Trencs and Amy Nogid The California Board of Equalization (BOE) voted to adopt an amendment to Ca. Code Regs. tit. 18, § 1525.4, to resolve a statutory ambiguity by clarifying that a taxpayer will qualify for the partial sales and use... Read More