Reed Smith Client Alerts

The 2018 calendar year included a number of interesting developments from a California tax perspective, including the ongoing saga of implementing Wayfair, proposed amendments to the market-based sourcing regulations, the decision not to conform to the federal transition and GILTI taxes, and the decision to conform to the federal partnership audit rules. In addition, the Office of Tax Appeals went through many rounds of regulation changes that will govern tax appeals into the future.

(This is a republication of Law360’s January installment of Reed Smith’s California Tax Takes monthly column.)1

2018 California tax highlights

As this year has come to a close, we thought it would be appropriate to provide a high-level recap of some of the most interesting and significant California tax developments from 2018.

  • California’s attempt to implement Wayfair use tax collection rules for online retailers

On December 14, 2018, Senator Mike McGuire and Assembly Member Autumn Burke jointly introduced Assembly Bill 147 (“AB 147”) to implement the U.S. Supreme Court decision in South Dakota v. Wayfair, Inc.2 The use tax collection requirements under the bill would differ from the requirements announced by the California Department of Tax and Fee Administration (“CDTFA”) by way of a notice the previous week.