California Gov. Jerry Brown has signed legislation that repeals the state’s Multistate Tax Compact provisions, clarifying that the standard three-factor apportionment formula is not an option for California corporation franchise and income tax purposes, except for businesses that derive more than 50% of their gross business receipts from certain qualifying business activities. In addition, the legislation
- clarifies existing law regarding elections;
- expands the definition of a ”state tax liability” for purposes of issuing withholding orders for taxes; and
- expands the state’s Financial Institution Record Match (FIRM) program to collect delinquent amounts payable to the State Board of Equalization (BOE) and the Employment Development Department (EDD).
Details of the legislation were previously reported. (TAXDAY, 2012/06/29, S.3 )
Ch. 37 (S.B. 1015 ), Laws 2012, effective June 27, 2012