California Draft Market-Based Sourcing Rules Need Work

California’s latest draft rules for market-based sourcing of sales of intangibles are confusing and could harm defense contractors and asset managers, representatives of those industries told the Franchise Tax Board.

Two FTB attorneys leading a discussion meeting for interested parties May 18 said they plan to make multiple changes to the draft, but that they aren’t sure how to fix some of the criticism and confusion they heard from corporations and practitioners. FTB Tax Counsel Melissa Williams told Bloomberg Tax after the meeting that the FTB will work to release a new version of the draft rules in about six ...