California

KBF’s quarterly newsletter updates clients on sales and use tax news, developments, and trends from around the country. This edition includes important rulings in taxable software services and digital goods, sales tax for third-party retailers, taxability of credit reporting services, sales tax for ticket resale, and more. Learn more about these developments by downloading the…

KBF’s quarterly newsletter updates clients on sales and use tax news, developments, and trends from around the country. This edition includes important filing deadlines for businesses, changes in tax rates, tax requirements on digital services and remote sellers, and more. Learn more about these developments by downloading the newsletter here.

Companies doing business in San Francisco (the city) are required to register and pay an annual registration fee. The general deadline for paying license fees for the 2023-2024 period is May 31, 2023. Furthermore, general businesses may be subject to up to four city taxes: the San Francisco Gross Receipts, Homelessness Gross Receipts, Commercial Rents,…

Companies and individuals doing business in the City of Los Angeles and its neighboring cities may find themselves subject to the annual Los Angeles City Business Tax (LACBT), due on February 28, 2023. With work-from-home arrangements becoming more common, along with broad nexus standards, companies may find themselves unexpectedly triggering a filing obligation or increasing/decreasing…

Summary Since the passage of the Tax Cuts and Jobs Act (TCJA) in 2017, individuals who itemize their federal tax deductions have been limited to a $10,000 deduction for state and local income taxes. A pass-through entity (“PTE”) tax is meant to be a workaround for the federal $10,000 state tax limitation. It imposes an…

Summary Beginning in 2022, the California Franchise Tax Board (FTB) will require most businesses to disclose the status of their unclaimed property compliance on their business tax returns.  This information will be shared with the State Controller’s Office (SCO) with the purpose of increasing the awareness of, and compliance with, unclaimed property reporting requirements.  To…

Background California allows qualifying manufacturers and certain research and developers a partial exemption from sales and use tax on various purchases of machinery and equipment used primarily for manufacturing, research, and development activities.  Additionally, the state expanded the partial exemption to certain power generators and distributors for equipment used for power generation, production, storage or…