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California Governor Gavin Newsom has signed legislation (i.e., S.B. 113) to, among other things, reinstate business tax credits and net operating loss (NOL) deductions originally limited by the enactment of A.B. 85 in 2020.

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Two organizations, the Washington Bankers Association and American Bankers Association (collectively, the “Associations”), are urging the U.S. Supreme Court to review the constitutionality of Washington’s business and occupation surtax on large financial institutions. On January 28, 2022, the Associations filed a cert petition arguing that the surtax discriminates against interstate commerce in violation of the Commerce Clause and that the Washington Supreme Court’s decision upholding the surtax is erroneous.

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Pillsbury SALT attorneys Carley RobertsRobert P. Merten IIIJeff Phang, and Lexi Louderback recently published “How to Be Reasonable When Reasonably Approximating the Market: Part II”  in Tax Notes State. Read more here.Tax-Notes-logo

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California Supreme Court holds that courts can entertain arguments that a BID assessment scheme violates certain provisions of Proposition 218 when raised by a party who did not articulate these objections in public hearings held to consider protests.https://seesalt.pillsburylaw.com/files/2020/05/250px-Seal_of_California.svg_.png

On December 20, 2021, the California Supreme Court reversed the court of appeal which had concluded that petitioners failure to present their objections to proposed business improvement districts (“BIDs”) and related assessment schemes at the appropriate public hearings meant they had not exhausted their extrajudicial remedies, a lapse that prevented the court from deciding petitioners’ claims on the merits.  Hill RHP Housing Partners, L.P. et al. v. City of Los Angeles, No. S263734.

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