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California Sunsets Come With A Price—California Taxes

Many residents of California regularly enjoy the beautiful sunsets often spotted in this popular state.  However, the high California tax rates might not be as beautiful as the state’s breathtaking landscapes.

California tax law can be a very difficult subject to understand.  Between the multitude of information available which relates to franchise, sales, use, income, employment and property tax law, and the variety of boards that are involved, such as the Board of Equalization, California Department of Tax and Fee Administration (TFA) or the Franchise Tax Board, it can be difficult to decipher what you owe the government.  An attorney can educate you on the California Revenue and Tax Code and other regulations and laws associated with your tax liabilities.  Tax laws and regulations are often in flux, so you should remain abreast of any changes in the law that may concern you.

Depending on your residency and domicile, you may be subject to California’s hefty income taxes.  However, there are particular residency requirements that must be met in order to be subject to the tax rates.  For instance, you are not likely to be considered a resident if you are merely visiting California for a “temporary or transitory purpose.”  Yet, if your business is primarily online and you have a “physical presence” in California, you may be susceptible to the internet tax and sales law of California.

A “physical presence” may be triggered if you have a department, workplace, or even a sales agent in California.  Under certain circumstances, large online dealers may be subject to California tax laws even in the absence of “physical presence.”  However, some items may be deemed “non-taxable” if they fit into itemized categories under California law, such as resale items and certain food products and software.

Depending on your goals as an individual or a business, different laws and governmental forms may pertain to you.  An attorney can help you deal with collection letters sent from the Internal Revenue Service, the reduction of fines and interest, and tax liens.  An attorney can also calculate the property taxes you will be liable for depending on your property value. There may be exemptions that apply to homeowners which can be removed from the value before being subject to the tax charge. It is imperative to consult a tax attorney to find out the rates that relate to your income, property, and other assets.

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