All about business February 2018 Tax News

Market-based sourcing discussions continue

November 1 through 3, 2017, we participated in a market-based sourcing rules panel at the California Tax Policy Conference held in Carlsbad, California. The panel discussed the most recent Chief Counsel Rulings and proposed amendments to California Code of Regulations, Title 18, Section 25136-2. Specifically, the panel discussed assignment of asset management fees, government contracts, freight forwarding/brokering, and research and development contracts, along with the rules for invoking reasonable approximation as a method for sourcing sales from sales of other than tangible personal property.

Currently, we are reviewing proposed language for all proposed amendments. Prior to the next Interested Parties Meeting, draft language for all proposed amendments and staff's 50 state analyses will be published on our website.

The next Interested Parties Meeting will be held sometime this spring.