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California Can Tax Century Theatres Trust Beneficiaries’ Income

June 29, 2020, 9:56 PM

Beneficiaries of a trust tied to the family that founded Century Theatres Inc. must pay income tax on all California income regardless of whether one of the beneficiaries lives out of state, a state appellate court said Monday.

The 20-page ruling overturned the trial court and rejected arguments that the Franchise Tax Board said during a 2016 administrative appeal would upend 80 years of state taxation of trusts and mean billions of dollars in lost revenue.

“Based on our reading of the statute’s provisions as a whole, we conclude the Revenue and Taxation...

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