Multistate Tax Asset Management Alert: California Propositions Possible Impact on Fund Managers and Partners |
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On November 6, 2012, California voters cast their ballots in favor of Propositions 39 and 30. Proposition 39 generally imposes mandatory single sales factor apportionment, with market-based sourcing for sales of other than tangible personal property and is effective for tax years beginning on or after January 1, 2013.
Proposition 30 includes an increase to personal income tax rates for incomes over $250,000. The tax rate increase is effective for taxable years beginning on or after January 1, 2012, and sunsets after December 31, 2018.
The attached alert discusses the potential implications and considerations of these measures for certain fund management companies operating as partnerships, and their resident or non-resident partners.
Multistate Tax - Asset Management Alert - California propositions possible impact on fund managers and partners
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