BTAX OnPoint: Key California Tax Changes

California recently enacted legislation amending multiple provisions of the state’s income and sales and use tax laws. Together these changes are projected to increase taxes by billions of dollars per year, helping to close the state’s budget gap.

Most controversially, the changes include amending the corporate income tax to require that the formula used to apportion taxable income to the state be calculated based on net income, rather than gross receipts. For many corporations, this will result in a larger California income tax liability.

This OnPoint discusses:

• the codification of net income corporate income tax apportionment and related litigation;
• the ...