Financial Services Sector Has More Asks for California Tax Rules

Regulations seven years in the making to guide how financial services companies assign sales to California for tax purposes still need improvements, industry groups told the California Franchise Tax Board.

The Securities Industry and Financial Markets Association, the Managed Funds Association, and a tax attorney are asking for several changes—starting with the 2024 effective date—before the market-based rules for sales other than sales of tangible personal property become final.

The draft rules “still present significant administrative and practical difficulties for taxpayers in the asset management services industry,” the MFA said in written comments obtained through a public records request.

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