California Panel Hones Test for Crediting Taxes to Other States

A retired part-owner of Pacific Investment Management Co. LLC failed to convince a California tax tribunal that he and his wife are entitled to a refund of more than half a million dollars for taxes paid to New York City and state.

To avoid double taxation on income residents earn in other states, California law provides an “other state tax credit” against the California tax bill. California resident Scott A. Mather and his wife sought the credit on their state net income taxes for New York City’s Unincorporated Business Tax and the Metropolitan Commuter Transportation Mobility Tax he paid for ...