Tax Law

Recent Posts

The not so great escape: California limitation on retroactive property tax assessment did not apply where notice was not filed.
Posted on 18 Sep 2020 by Eversheds Sutherland LLP

A California Court of Appeal found that because the taxpayer did not file proper notice with the California Board of Equalization (BOE), the limitation on the number of years the county assessor can levy retroactive escape assessments did not apply. The... Read More

Tiny Interest + Big Property = California Nexus: Office of Tax Appeals Determines Minority LLC Interest Creates Taxable Nexus
Posted on 16 Sep 2020 by Eversheds Sutherland LLP

On July 7, 2020, the California Office of Tax Appeals (OTA) held that a foreign LLC was subject to the state’s $800 LLC tax because it held a 0.7830849% ownership interest in an LLC that owned property in San Diego. In addition to a more traditional nexus... Read More

California Supreme Court Denies Review in Local Tax Simple vs. Super-Majority Vote Case
Posted on 10 Sep 2020 by Eversheds Sutherland LLP

On September 9, 2020, the California Supreme Court denied review of the opinion of the First District Court of Appeal in City and County of San Francisco v. All Persons Interested in the Matter of Proposition C , which held a voter-initiated local special... Read More

California DTFA proposes guidance on drop shipment taxation
Posted on 9 Sep 2020 by Eversheds Sutherland LLP

On August 25, California’s Department of Tax and Fee Administration released a discussion paper and proposed amended regulations to clarify when marketplace facilitators are considered the retailer with regard to drop shipment transactions. The CDTFA... Read More

Eversheds Sutherland files amicus curiae brief on behalf of COST in Fresno Measure P case
Posted on 8 Sep 2020 by Eversheds Sutherland LLP

Eversheds Sutherland has filed an amicus curiae brief on behalf of the 550 members of the Council On State Taxation (COST) on the important issue of whether imposition of certain local special taxes in California requires a two-thirds vote by the California... Read More

Eversheds Sutherland files amicus curiae brief on behalf of COST in San Francisco Prop C (June 2018) case
Posted on 4 Sep 2020 by Eversheds Sutherland LLP

Eversheds Sutherland has filed an amicus curiae brief on behalf of the 550 members of the Council On State Taxation (COST) on the important issue of whether imposition of certain local taxes is required to be passed by a two-thirds vote by the California... Read More

Webcast: SALT Issues Related to Worker Classification and Teleworking
Posted on 3 Sep 2020 by Eversheds Sutherland LLP

September 10, 2020 | 12:00 – 1:00 p.m. PDT In this marketplace webcast, we will discuss ongoing worker classification disputes in California, as well as other states, and the SALT implications resulting from those disputes. We will also discuss SALT... Read More

Don’t Be Shocked: California Cities Allege that PG&E Willfully Miscalculated Electricity Tax
Posted on 2 Sep 2020 by Eversheds Sutherland LLP

Several California localities filed a complaint alleging that PG&E willfully miscalculated the electricity user’s tax (“Electricity Tax”) causing harm to the cities, their employees and public services. California cities and counties impose Electricity... Read More

California DTFA Proposes Guidance on Drop Shipment Taxation
Posted on 2 Sep 2020 by Eversheds Sutherland LLP

On August 25, California’s Department of Tax and Fee Administration released a discussion paper and proposed amended regulations to clarify when marketplace facilitators are considered the retailer with regard to drop shipment transactions. The CDTFA... Read More

SALT Scoreboard – California Local Tax Edition
Posted on 17 Aug 2020 by Eversheds Sutherland LLP

A recent wave of local tax initiatives passed by simple majority vote in cities and counties across California has resulted in either court validation actions or challenges under the state constitution. Article XIII C, Section 2(d) of the California Constitution... Read More

Recent CA, TX and UT Tax Rulings on Income Tax, Unclaimed Property and Electricity Taxes
Posted on 13 Aug 2020 by Eversheds Sutherland LLP

In this episode we discuss three recent developments, including an electricity tax matter in California ( City of Arcata v. Pacific Gas & Electric Co. ) a Texas unclaimed property matter ( CKD Homes Direct, Ltd v. Comptroller ) and a Utah income tax... Read More

The Long Road to Clarity: FTB Holds Latest Meeting in Multiyear Project to Clarify Alternative Apportionment Petition Process
Posted on 13 Aug 2020 by Eversheds Sutherland LLP

On Aug. 11, the California Franchise Tax Board (FTB) held the latest Interested Parties Meeting (IPM) in its three-year long project to amend the state’s alternative apportionment petition regulation. The meeting covered changes in the latest proposed... Read More

Hearing Held on Controversial California Corporate Tax Disclosure Bill
Posted on 13 Aug 2020 by Eversheds Sutherland LLP

On Aug. 11, the California Assembly Appropriations Committee held a hearing on S.B. 972 , a controversial bill that authorizes the disclosure of otherwise confidential taxpayer information. S.B. 972 requires the Franchise Tax Board (FTB) to compile... Read More

California’s Flawed Proposal to Expand False Claims Act to Tax
Posted on 7 Aug 2020 by Eversheds Sutherland LLP

In a forthcoming article in State Tax Notes , Eversheds Sutherland SALT partner Jeff Friedman and associate Dennis Jansen explore the issues with A.B. 2570 – California’s latest attempt to extend the state’s whistleblower statute to tax claims. The... Read More

California Court of Appeal Finds That Sourcing of Income for Individuals Applies to Trusts
Posted on 24 Jul 2020 by Eversheds Sutherland LLP

The California Court of Appeal held that California income tax applies to the entire amount of trust income that is derived from California sources, even though a trust is managed in part by a non-resident trustee. The taxpayer had requested a refund... Read More