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Assembly Bill 2412 (Migden and Aroner), now pending in the California Legislature, would drastically expand the California rules for nexus to tax under the California Sales and Use Tax Law. The bill should be of high interest to Internet retailers who do not have a physical presence in California. A.B. 2412 would expand California law to provide that a retailer has nexus with California based solely on the relationship between the out-of-state retailer and another retailer who does have nexus with California.

(The remainder of this article can be accessed in the July/August 2000 edition of Cyberspace Lawyer.)

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Legislation: Income and Franchise Taxation
1999 Cal. Stat. ch. 64, amending Cal. Rev. & Tax. Code section 23153, amending and repealing Cal. Rev. & Tax. Code section 23221, adding Cal. Rev. & Tax. Code 23221, exempts every corporation that incorporates or qualifies to do business in California on or after January 1, 2000, from the minimum franchise tax for the second taxable year and the minimum franchise tax for the second taxable year.

(The remainder of this article can be accessed in the 2000 edition of the ABA’s State and Local Tax Lawyer.)