Tricks and Tricksters – End of Session Attack on Taxpayers
**ALERT** Late Session Assault on Taxpayer Rights **ALERT**
The end of session is a good opportunity to amend into bills controversial issues that authors hope will go unnoticed in the hustle and bustle of hundreds of bills. A perfect example is AB 1546 (Calderon).
This is legislation that started off trying to resolve a situation where the state found itself on the losing end of a billion dollar court decision. The court found unconstitutional the LLC "fee" which taxed income from both inside and outside the state. The bill had problems from the start. While it correctly addressed the commerce clause violation by limiting income determination to in-state revenues, it also limited the LLC’s ability to be reimbursed from the state.
Late last week, however, AB 1546 was quietly expanded to limit the ability of all taxpayers — business and personal — to recover fees or taxes that are declared unconstitutional. What this bill means is that if the government of California unjustly taxes your income and it takes five years to have a… Read More