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the tax law was found to be invalid by a court, so all taxes paid under the law had to revert to the rate paid under the previous law. However, only taxes paid
by joshAg 14y ago
the tax law was found to be invalid by a court, so all taxes paid under the law had to revert to the rate paid under the previous law. However, only taxes paid in the last four years are subject to court rulings like this due to statutes of limitation, which is why the CFTB went back four years, and not zero (everyone paying after the law was found to be invalid would have a 14th amendment suit since the law is invalid), three (see previous) or five (statute of limitations).
- RexRollman 14y agoOkay, thanks for the info!
- jclarkcom 14y ago> the tax law was found to be invalid by a court This isn't quite true, only part of the law was found to be unconstitutional (the part requiring that 80% of your payroll be located in CA). The FTB could have chose to continue the law but would have to retroactively pay people who previously applied for this deduction and were refused because they had >20% payroll outside of CA.