AHLSTARZ Tax and Accounting Service -- Numbers, Simplified.

A hearing has been scheduled for January 13, 2010, to review proposed amendments to the existing California corporation franchise and income tax regulation governing the apportionment formula's sales factor rules for sales of other than tangible personal property.

Under current California law and regulations, sales of other than tangible personal property are sourced to the state where the income-producing activity that gave rise to the receipts is performed. The proposed changes would include activities performed by third parties on behalf of a taxpayer in determining where an income-producing activity is performed. Currently, activities performed by third parties, other than members of a combined reporting group, are not included in determining where the income producing activity is performed. The proposed changes are modeled after, but are not identical to, the changes made to the Multistate Tax Commission's model regulation

The hearing will be held at 1:00 p.m., on January 13, 2010, at the Franchise Tax Board's (FTB) headquarters at 9646 Butterfield Way, Town Center, Golden State Room A, Sacramento, California. Written comments on the regulations should be submitted by 5:00 p.m. on January 13 to: Colleen Berwick, FTB Legal Division, P.O. Box 1720, Rancho Cordova, CA 95741-1720; telephone (916) 845-3306; fax (916) 845-3648; or e-mail: colleen.berwick@ftb.ca.gov.

Substantive questions or inquiries should be directed to: Melissa Potter; telephone: (916) 845-7831 or e-mail: Melissa.Potter@ftb.ca.gov.

Subscribers can view the notice of hearing, initial statement of reasons, and the proposed text of the regulations.

Announcement, California Franchise Tax Board, October 23, 2009