Pillsbury SALT attorney Zachary Atkins will present during Verizon’s Small Business Accelerator Program on October 1.
Taxpayer Files Court Action Challenging California’s Proposition 39 (2012) and its Mandatory Single-Sales Factor Apportionment Formula
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In One Technologies LLC v. Franchise Tax Board, an out-of-state California corporate taxpayer filed suit in California trial court challenging the state’s mandatory single sales factor apportionment formula on the basis its passage in 2012 via voter initiative Proposition 39 unconstitutionally violated the “single subject rule.”
CDTFA Proposes Amendments to Regulation 1706 (Drop Shipments) to Clarify that Marketplace Sales Are Generally Not Drop Shipment Transactions
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The California Department of Tax and Fee Administration (Department) has given notice that it proposes to amend California Code of Regulations, title 18, section (Regulation) 1706, Drop Shipments. Regulation 1706, subdivision (c) provides that a drop shipper making a drop shipment must report and pay tax measured by the retail selling price of the property paid by the California consumer to the true retailer, unless the sale and use of the property are otherwise exempt. The proposed amendments clarify that marketplace sales are generally not drop shipment transactions and provide more guidance about how a person can overcome the presumption they are a drop shipper. Continue Reading ›
California’s Long-Awaited Market-Based Sourcing Regulation Amendments: Why Participate in the Formal Regulatory Process?
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Five years and six interested parties meetings later, California is finally ready to proceed with the formal rulemaking process to adopt substantial amendments to its market-based sourcing rules. At the Franchise Tax Board’s September 9, 2021 meeting, FTB staff requested permission and received approval from its three-member Board to commence the formal regulatory process under California’s Administrative Procedure Act (APA) to amend California Code of Regulations, Title 18, section 25136-2 (Regulation 25136-2). Continue Reading ›
West Virginia: Streaming Services Subject to Sales and Use Tax
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The West Virginia State Tax Department released new guidance, TSD-445, that clarified that streaming services are subject to sales and use tax in the state. The Department’s guidance distinguishes streaming services from digital products, which are specifically exempted under the law. The Department explains that streaming services are subject to a 6% state sales and use tax, in addition to up to 1% in municipal sales and use tax if applicable, because West Virginia taxes all services unless a specific exception or exemption applies.
Western States Petroleum Association’s Virtual Property Tax and Excise Tax Educational Forum
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Pillsbury SALT partner Jeffrey Vesely will present during WSPA’s virtual event on October 13.
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COST’s 52nd Annual Meeting and Webinar
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Pillsbury SALT partner Carley Roberts will present during COST’s 52nd Annual Meeting on October 19 in Las Vegas, NV.
COST’s 2021 Property Tax Workshop
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Pillsbury SALT attorneys Craig Becker, Robert P. Merten III and Zachary Atkins will present during COST’s Annual Property Tax Workshop September 22 – 24.
California Lawyers Association’s Taxation Webinar
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Pillsbury SALT attorney Jeff Phang will present during CLA’s taxation webinar on September 13. Jeff is partnering with Annie Rothschild (Eversheds Sutherland) to present on the topic, “Recent Developments in California Income Tax Apportionment and Sourcing Law.”
Only Simple Majority Required (Again!): California Court of Appeal Holds SF’s Proposition G Citizen Initiative Did Not Require Supermajority Voter Approval; Reconsideration Request Pending
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California’s Court of Appeal again held that a special tax measure placed on the local ballot as a citizen initiative required only a simple majority, not a supermajority, vote to pass. 
Proposition G is a school parcel tax initiative that passed on San Francisco’s June 2018 ballot with 60.76% of the vote. The Proposition G school parcel tax is a special tax—in other words, the expenditure of its revenues is dedicated to a specific project or projects—and not a general tax, which revenues roll into the locality’s general fund. Here, the Proposition G school parcel tax funds are earmarked for educators’ salaries, staffing, professional development, technology, charter schools, and oversight of funding.