Tax News

CCH (cch.taxgroup.com) reports:

  The California Legislature passed two budget trailer bills as part of the budget deal negotiated between Gov. Arnold Schwarzenegger and legislative leaders that, if enacted, would increase personal income tax withholding, accelerate the installment payments for personal income and corporation franchise and income taxes, retroactively revise the estimated tax underpayment penalty to conform the application of withholding credits to the revised estimated tax installment percentages, generally conform to federal backup withholding provisions, and require qualified purchasers to register with the California State Board of Equalization (BOE) for purposes of reporting and paying use taxes.

  Notably absent from the California budget agreement is the so-called Amazon proposal to create a presumption of nexus for online sellers for sales tax purposes under certain circumstances. The governor previously vetoed such a proposal (S.B. 17, Third Extraordinary Session, was vetoed by the governor on June 30, 2009).