The purpose of this quarterly California Tax Legislative update is to provide our clients and prospective clients with timely and meaningful updates that affect both their personal income and business taxes.

The 2nd Quarter of 2013 saw a proposed law change that could significantly impact the California tax posture of in-state businesses.  The proposed law change, which was approved by the California State Assembly, will repeal the existing state wide enterprise zone program in favor of a targeted hiring credit and partial sales/use tax exemption on certain qualifying equipment.  Additionally, the state will now require disclosure of certain like-kind exchange transactions and there were recent developments in the area of penalties for demand notices issued by the Franchise Tax Board.

This tax alert includes information on the following:

  • Legislature Approves Changes to California Enterprise Zone Credit
  • Out-of-State Financial Securization Entities May Be Subject to Tax Based on Agency Relationship
  • Scheduled Public Hearing for DISA Regulation
  • State Board of Equalization Addresses Occasional Sales
  • Penalties Related to Failing to Respond to Demand Notices
  • Required Disclosure for Like-Kind Exchanges of Out-of-State Property