On its own motion, and for good cause, a California court of appeal has vacated its earlier decision in Gillette v. Franchise Tax Board and ordered a rehearing in the taxpayer’s challenge to the FTB’s position that despite California’s participation in the Multistate Tax Compact (MTC), California taxpayers were required to utilize the double-weighted sales tax formula to apportion their net business income for corporation franchise and income tax purposes. In the decision that was vacated, the court had ruled that the FTB’s interpretation was incorrect and that so long as California was a member of the MTC, taxpayers could elect to utilize the MTC’s equally-weighted apportionment formula (TAXDAY, 2012/07/25, S.7 )
The Gillette Co. v. Franchise Tax Board, Court of Appeal of California, First District, No. A130803, decision vacated and rehearing ordered, August 9, 2012
