4 ms·
People will just transfer to satellite offices / companies will establish a presence outside of California. I'm sure at some point the CA legislature will atte
by steffan 6y ago
People will just transfer to satellite offices / companies will establish a presence outside of California. I'm sure at some point the CA legislature will attempt to tax any "work that has a material benefit to a California business", but that is a shaky legal argument.
- qppo 6y agoAfter MD v Wynne, I think they'd have to give tax credits to income tax paid in other states if they tried that.
- ninkendo 6y agoYup, this is what happened to me this tax year, but only for stock options, not for regular income. I work for a CA company, but remotely from the midwest (home office), and I pay CA taxes for the stock vests I got from my company last year (because I lived in CA when the grant occurred.) But I also paid taxes in my home state for the same stock. I just filed an "Other State Tax Credit" in CA (form 540 Schedule S), which effectively made CA give me a refund equal to the amount I paid in my home state. Same thing would happen if my regular salary was taxed. It effectively means you pay the higher tax of the two states: if the state you live in has higher taxes (NY for instance), CA would have to essentially refund you all the taxes you paid; whereas if you live in a cheaper state (more likely), you effectively pay a CA income tax rate overall, since CA is keeping the remainder after refunding you for the other state.
- closeparen 6y agoTech companies are Deleware businesses, though. You'd have to do something even crazier, like "a business with a significant California business."