The purpose of this quarterly California Tax Legislative update is to provide our clients and prospective clients with timely and meaningful tax legislative updates that will affect both their personal and businesses taxes.
While the First Quarter of 2013 was considerably slower from a legislative perspective then the Fourth Quarter of 2012, California continued on its path of making the state considerably more difficult to live and operate in for both individuals and businesses. Taxpayer’s had a chance to voice their concerns over pending legislation in California designed to make the lucrative Enterprise Zone tax credit process much more stringent.
In addition, taxpayers who rightfully benefited from California’s QSB exclusion/deferral provisions will now be assessed tax and interest retroactively for following the law, in light of the California Supreme Court’s decision in Cutler v. Franchise Tax Board. Proposed legislation would make the change in ownership of real property reporting requirements much more onerous.
Finally, while not California related, a number of states are looking for additional ways to tax online retailers by establishing nexus rules based on affiliate and “click-through” nexus relationships.
This tax alert includes information on the following:
• Enterprise Zone Credit Public Hearings on Draft Regulations
• California Supreme Court Rules QSBS Gain Exclusions and Deferral Invalid
• Proposed Bill to Increase Property Tax Filing Requirements
• Proposed Expansion of Sales and Use Tax Nexus Outside of California