LexisNexis® Legal Newsroom
California Court of Appeal Permits Retroactive Taxes to Remedy Unconstitutional Discrimination; Upholds Post-Amnesty Penalty

By Thomas H. Steele, Eric J. Coffill, Andres Vallejo, Carley A. Roberts, and Scott M. Reiber The California Court of Appeal, First Appellate District, recently issued an opinion against the taxpayer in River Garden Retirement Home v. Franchise Tax Bd., 2010 Cal. App. LEXIS 1146 (Cal. App. 1st Dist...

Litigation Challenging New York's Controversial Nexus Statute Continues

By Jeffrey A. Friedman , Michele Borens , and Mark W. Yopp On November 4, an appellate court held that the New York affiliate nexus law does not violate the Equal Protection Clause and is facially constitutional under the Due Process and Commerce Clauses. However, the court remanded the case to further...

No Economic Nexus for ConAgra Intangibles

The West Virginia Supreme Court of Appeals held that the licensing of intangible trademarks and trade names by ConAgra into West Virginia did not subject ConAgra to corporate income tax. In sustaining the opinion of the state circuit court, which overturned the Board of Tax Appeals finding in favor...

California Taxpayers Whipsawed!

QSBS Exclusion, Deferral Statutes Unconstitutional In August 2012, California's Second District Court of Appeal determined that the "qualified small business stock" (QSBS) exclusion and deferral statutes were unconstitutional. See Cal. Rev. & Tax. Code Sections 18038.5 and 18152...

Constitutional Limitations on State Taxation of Securities Transactions

by Andrew W. Singer, Esq.* I. Introduction Income from securities transactions may be subject to both federal and state income taxes, at least in the substantial majority of States that impose income taxes. The US Constitution imposes limits on State taxes to which the federal income tax is not...