Multistate Tax Alert: California Repeals the Multistate Tax Compact Election |
California Governor Jerry Brown has signed the 2012-2013 California State Budget (the “Budget”) and related budget trailer bills enacting changes to several tax provisions effective as of June 28, 2012. One of those trailer bills, Senate Bill (“S.B.”) 1015, repeals the Multistate Tax Compact (the “Compact”), including corporate tax provisions that allowed taxpayers to elect to use the Compact’s allocation and apportionment provisions. The new law also contains Legislative declarations that: (1) according to the “doctrine of elections,” unless otherwise provided, any election affecting the computation of tax must be made on an original timely filed return; and (2) repeal of the Compact election should not be construed to create an inference of a change in law with respect to the Compact election prior to its repeal. The bill also expands the Franchise Tax Board’s (“FTB’s”) authority to issue withholding orders, and the definition of “delinquent tax debtors” whose tax liabilities FTB may collect under the Financial Institution Record Match (“FIRM”) System. Both houses passed S.B. 1015 by a majority vote.
For more on this California law change, please see the attached Tax Alert.
Multistate Tax Alert: California Repeals the Multistate Tax Compact Election
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