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Did the Anti-Taxers Win on Tuesday?

In Washington they did. Voters overwhelmingly rejected the measure that would have imposed an income tax on the state's wealthiest citizens. They also voted to repeal the sales tax on candy and a special excise tax on soft drinks. . . . But in Colorado, three tax cutting measures, that were so extreme...

Outrage in California

The Los Angeles Times ran a great story yesterday about corporate hypocrisy. Genentech is a California bio tech firm with a market cap of about $100 billion and annual sales of a million. Genentech was also one of the major opponents of Proposition 24, which appeared on the ballot in California last...

State Net Capitol Journal - May 21, 2012

Budget & taxes CONGRESSIONAL REPUBLICANS CALL OUT STRUGGLING US STATES: As economic turmoil returned this month to Greece and Spain, key Republicans in Congress issued a tough message for struggling U.S. states. "Recent experience on Wall Street and in Athens suggests that if decision makers...

State Net Capitol Journal - May 21, 2012

Budget & taxes CONGRESSIONAL REPUBLICANS CALL OUT STRUGGLING US STATES: As economic turmoil returned this month to Greece and Spain, key Republicans in Congress issued a tough message for struggling U.S. states. "Recent experience on Wall Street and in Athens suggests that if decision makers...

New From California: Flexible Purpose Corporations

[Editor's Note : This narrative is derived from Trust Administration and Taxation, § 3.03[5] (Matthew Bender) b y Joseph L. Wyatt, Jr., J.D., Morrison & Foerster LLP, Los Angeles, CA. It describes California's Corporate Flexibility Act of 2011, establishing a new Division of the Corporations...

New From California: Flexible Purpose Corporations

[Editor's Note : This narrative is derived from Trust Administration and Taxation, § 3.03[5] (Matthew Bender) by Joseph L. Wyatt, Jr., J.D., Morrison & Foerster LLP, Los Angeles, CA. It describes California's Corporate Flexibility Act of 2011, establishing a new Division of the Corporations...

Sutherland SALT Shaker: September 2014 Digest

Click here to read our September 2014 posts on stateandlocaltax.com or read each article by clicking on the title. A printable PDF is also available here . To read our commentary on the latest state and local tax developments as they are published, be sure to download the Sutherland SALT Shaker mobile...

A Pinch of SALT: What New York Can Learn From California's Combined Reporting History

As part of a sweeping law change, New York will require taxpayers to use a water’s-edge combined reporting method when filing corporate income tax returns beginning January 1, 2015. In this edition of A Pinch of SALT, Sutherland tax attorneys Carley A. Roberts, Pilar Mata, Stephanie Do and...

Sutherland SALT's Prentiss Willson Receives the California Bar's Benjamin F. Miller Award

pleased to announce that Prentiss Willson has been recognized with the Benjamin F. Miller Award from the State Bar of California Taxation Section. He will accept his award at a luncheon on November 6 at the California Tax Policy Conference. The Benjamin F. Miller Award is given annually to recognize...

You're Gonna Have to Do More Than That: Passive Investment in California Limited Liability Company Insufficient to Meet Statutory Nexus Threshold

By Evan Hamme and Timothy Gustafson A California Superior Court held that passive membership in a limited liability company (LLC) is insufficient to meet California’s statutory “doing business” standard. In Swart Enterprises, Inc. v. California Franchise Tax Board, an Iowa corporation...

California Real Property Deal Did Not Cause Change in Ownership

By Zachary Atkins and Douglas Mo A California Court of Appeal held that the sale of real property to a lessee having an original lease term of more than 35 years did not result in a change in ownership triggering reassessment for property tax purposes. Proposition 13 established a 2% per-year ceiling...

Hubba, Hubba, Hubba! Money, Money, Money! Who Do You Trust? California and North Carolina Differ on the Constitutionality of Taxing Undistributed Foreign Trust Income

By Michael Penza and Timothy Gustafson The California Franchise Tax Board (FTB) issued an information letter explaining that a trust is taxable in California if any of the following three conditions are met: (1) the trust has income from California sources; (2) a trustee is a resident of California;...

Residence Precedence? California State Board of Equalization Considers Issuing Formal Opinion in Taxpayer-Favorable Residency Ruling

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 domicile in Washington three months earlier than...

Hog Wild: In Harley-Davidson, California Court of Appeal Finds Discrimination, Affirms Nexus

By Michael Penza and Andrew Appleby The California Court of Appeal held that California’s disparate treatment of intrastate and interstate unitary businesses discriminated against interstate commerce. California requires taxpayers engaged in a unitary business within and without California to...

Bad Day for California as TTA Sales Tax Exemption for Software Is Broadly Reaffirmed by Appellate Court - Will Taxpayer Refund Claims Now Move?

In a significant rebuff of the California State Board of Equalization (BOE), the California Second District Court of Appeal held that a manufacturer’s sale of software on tangible media was exempt from sales tax under the technology transfer agreement (TTA) statutes. Lucent Technologies, Inc. v...

Sutherland Expands State and Local Tax Practice with Four Attorneys; Continues Growth in Sacramento Office

We are pleased to announce that Sutherland has expanded its premier State and Local Tax (SALT) practice with the addition of four associates: Elizabeth S. Cha and Samantha K. Trencs in Washington DC, Nicholas J. Kump in Sacramento, and Hanish S. Patel in Atlanta. The new group joins Sutherland’s...

What's Good for Today's Goose Is Not So Good for Yesterday's Gander: California Board of Equalization Rejects Taxpayer's Retroactive Economic Nexus Argument

By Evan Hamme and Timothy Gustafson The California State Board of Equalization (Board) unanimously rejected Craigslist, Inc.’s (Craigslist) argument that California’s adoption of a factor-presence nexus regime in 2009 reflected pre-existing federal constitutional nexus standards pursuant...

Legal Alert: California Supreme Court Holds Multistate Tax Compact is Not Binding

On December 31, 2015, the California Supreme Court closed the book on California’s Multistate Tax Compact election saga, unanimously holding that the Compact is not a binding contract among its members and the State was not bound by its provisions before the State’s repeal of the Compact...

California BOE Adopts Beneficial Amendments to Sales Tax Exemption for Manufacturing and R&D Equipment Over Department of Finance's Objections

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 tax exemption available for certain manufacturing...

No Ifs, Ands, or Buts: California Court Invalidates Regulation Limiting Consultant Contingent Fee Arrangements

By Olga Goldberg and Marc Simonetti The California Superior Court struck down a regulation that imposed a de facto ban on contingent fee arrangements between businesses applying for the California Competes tax credit and consultants. The Court ruled that the regulation exceeded the scope of the statute...

Alabama Tax Tribunal Rules That Freight Charges Not Subject to Sales Tax

By Jessica Eisenmenger and Leah Robinson The Alabama Tax Tribunal ruled that freight charges paid by the seller but passed through on an invoice to the customer are not subject to sales tax. Alabama law exempts shipping and freight charges “paid by the purchaser” from sales tax. Chief Tax...

Sourcing the Ticker Tape: California Ruling Addresses Sourcing of Financial Information Provider's Services

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 on where the taxpayer’s customer receives...

Sutherland Partner Carley Roberts Recognized as One of Tax Analysts' 2016 Outstanding Women in Tax

Sutherland is pleased to announce that Partner Carley A. Roberts has been recognized as one of the “Outstanding Women in Tax” by T ax Analysts , a leading publisher of tax news and analysis. A group of Tax Analysts editors, reporters and board members reviewed more than 300 submissions...