Throughout the week, we highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons. Read the recent alerts below or visit the archive.
California OTA: Activities related to deductible income permitted in apportionment factor On March 17, 2023, the California Office of Tax Appeals (OTA), in a pending precedential opinion, concluded, among others, that for the taxable years at issue (2008 through 2011), the taxpayer properly included in its combined reporting group’s apportionment percentage, its property, payroll, and sales attributable to income deducted under California Revenue and Taxation Code section 24404, disagreeing with the California Franchise Tax Board’s (FTB) longstanding position under FTB Legal Ruling 2006-01 that factors related to deducted income are not includible in the apportionment percentage. On June 26, 2023, the OTA issued an opinion denying FTB’s petition for rehearing.
This Multistate Tax Alert summarizes the decision and provides taxpayer considerations.
[Issued: August 8, 2023] More
Oregon extends pass-through entity tax and enacts CAT updates On July 27, 2023, Oregon House Bill 2083 (“H.B. 2083”) and House Bill 2073 (“H.B. 2073”) were signed by the governor. H.B. 2083 extends the elective pass-through entity level business alternative tax to the end of 2025. H.B. 2073 creates new exclusions from the Corporate Activity Tax (“CAT”) and clarifies the filing deadline for the CAT. H.B. 2083 and H.B. 2073 become effective on the 91st day after the legislature adjourned sine die on June 25, 2023.
This Multistate Tax Alert summarizes some of the relevant provisions of H.B 2083 and H.B. 2073. [Issued: August 4, 2023] More
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