Tax Law

Recent Posts

California Franchise Tax Board Announces 20-Day Comment Period for Alternative Apportionment Regulation Amendments
Posted on 31 Dec 2020 by Eversheds Sutherland LLP

On December 29, 2020, California’s Franchise Tax Board (FTB) staff announced a twenty-day comment period for four changes to the proposed draft language of its 25137 Regulation (Alternative Apportionment). After the twenty-day comment period expires,... Read More

Strike Two: Another California Court of Appeal Holds Voter-Initiated Local Special Taxes Not Subject to Constitutional Two-Thirds Supermajority Voting Requirement
Posted on 18 Dec 2020 by Eversheds Sutherland LLP

On December 17, 2020, a California Court of Appeal in the state’s Fifth Appellate District reversed a Fresno trial court decision, which held the California Constitution’s requirement that local taxes be approved by a supermajority vote applies to taxes... Read More

California Department of Tax and Fee Administration requests comments on marketplace sales regulation
Posted on 17 Dec 2020 by Eversheds Sutherland LLP

The California Department of Tax and Fee Administration has informed the public that it intends to commence formal rulemaking to permanently adopt Emergency Sales and Use Tax Regulation 1684.5, Marketplace Sales . The regulation addresses issues regarding... Read More

California’s Three-Member Franchise Tax Board to Consider Proposed Market-Based Sourcing and Alternative Apportionment Regulations at December Meeting
Posted on 10 Dec 2020 by Eversheds Sutherland LLP

On December 18th, the three-member Board of the Franchise Tax Board (FTB) will hold its final quarterly meeting of 2020.  At the meeting, the Board will consider the 2021 Rulemaking Calendar .  The Calendar contains the agency’s schedules for its administrative... Read More

California Superior Court invalidates sales tax Regulation 1585 awarding refund on sales of bundled cellular telephones
Posted on 18 Nov 2020 by Eversheds Sutherland LLP

On October 27, 2020, the Sacramento Superior Court granted a writ of prohibition barring the California Department of Tax and Fee Administration (the Department) from applying  sales tax Regulation 1585 (Reg 1585) to bundled sales of cellular telephones... Read More

Legal Alert: California and San Francisco ballot measures raise important worker classification issues
Posted on 11 Nov 2020 by Eversheds Sutherland LLP

Last week, California voters passed Proposition 22 – which considers app-based drivers for rideshare and delivery companies to be independent contractors – and San Francisco voters passed Proposition L – which imposes an additional tax on businesses where... Read More

California OTA Tells CDTFA Its Audit Manual Has No Authority In Appeal
Posted on 6 Nov 2020 by Eversheds Sutherland LLP

In a pending precedential decision, the California Office of Tax Appeals (OTA) held that the California Department of Tax and Fee Administration (CDTFA) is bound to follow its own regulation and could not rely on its audit manual to disregard that regulatory... Read More

California 2020 Ballot Measures – Latest Results
Posted on 4 Nov 2020 by Eversheds Sutherland LLP

Voters in California headed to the polls (or mailboxes) this Election Day not only to choose the next president of the United States but also to make decisions on a range of tax policy questions.  From removing property tax protections for commercial... Read More

Episode: II SALT Issues Related to Worker Classification and Teleworking
Posted on 28 Oct 2020 by Eversheds Sutherland LLP

This is episode two of our two part podcast series based upon our webcast addressing “SALT Issues Related to Worker Classification and Teleworking. In this marketplace podcast, we discuss SALT issues that teleworking may create for marketplaces with various... Read More

Taxpayer Privacy Rights Prevail: California Governor Vetoes Controversial California Corporate Tax Disclosure Bill, S.B. 972
Posted on 30 Sep 2020 by Eversheds Sutherland LLP

On September 29, 2020, Democratic Governor Gavin Newsom vetoed S.B. 972 , the controversial taxpayer disclosure bill that would have required the California Franchise Tax Board (FTB) to provide the Legislature annually with the names, tax liabilities... Read More

Taxpayer Privacy Rights Prevail: California Governor Vetoes Controversial California Corporate Tax Disclosure Bill, S.B. 972
Posted on 30 Sep 2020 by Eversheds Sutherland LLP

On September 29, 2020, Democratic Governor Gavin Newsom vetoed S.B. 972 , the controversial taxpayer disclosure bill that would have required the California Franchise Tax Board (FTB) to provide the Legislature annually with the names, tax liabilities... Read More

California Property Tax and LLC Tax Decisions
Posted on 24 Sep 2020 by Eversheds Sutherland LLP

In this episode we discuss two recent California decisions, including a Court of Appeal decision concerning property tax escape assessments ( Prang v. Los Angeles Cnty. Assessment Appeals Bd. , Case No. B301194 (Cal. Ct. App. Aug. 27, 2020) and an Office... Read More

Webcast: SALT issues related to worker classification and teleworking
Posted on 10 Sep 2020 by Eversheds Sutherland LLP

In this marketplace webcast, we 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 issues that teleworking may create for marketplaces... Read More

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