Tax Law

California Suit Challenges Mandatory Single-Sales-Factor Apportionment

By Dakessian Law | September 16, 2021
TaxAnalysts – State Tax Notes (September 16, 2021): A lawsuit filed in California seeks to overturn the state’s mandatory single-sales-factor apportionment requirement, which it says was unlawfully passed. In One Technologies LLC v. Franchise Tax Board, a Texas company argues that it’s owed a refund for the tax it paid to California for the 2017 […]
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Senior community seeks tax relief due to damage by COVID

By Dakessian Law | September 14, 2021
San Francisco Daily Journal (September 14, 2021):  In what could be one of the first of many cases, the operators of a Sacramento senior living community have sued a county tax agency over its refusal to lower its assessment because of the COVID-19 pandemic. Attorney Marty H. Dakessian of Los Angeles stated in a complaint […]
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California Revisits Wealth Tax

By Dakessian Law | March 15, 2021
March 15, 2021 — California legislators plan to re-introduce a first-of-its-kind wealth tax proposal similar to the one that failed in 2020. Instead of a 4% tax on wealth over $40 million, this year’s proposal would impose a 1% tax on wealth above $50 million and a 1.5% tax on wealth above $1 billion. The new […]
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Taxpayers Entitled to Refund for 2011 Sale of Stock, OTA Rules

By Dakessian Law | December 4, 2020
CalTaxletter (December 4, 2020): Two taxpayers were entitled to a refund of $423,695 for the 2011 tax year, the Office of Tax Appeals concluded in an October 21 ruling in the Appeal of L. Conacher and J. Dea. In its 2-1 ruling, the OTA additionally denied the Franchise Tax Board’s proposal of $20,120 of additional […]
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State Supreme Court Lets Taxpayers’ Win Stand in Case Involving Tax on Liquid Storage Capacity

By Dakessian Law | January 17, 2020
CalTaxletter (January 17, 2020): The California Supreme Court this week denied review of a Court of Appeal ruling that invalidated a tax in Rialto as an invalid real property tax. The high court’s January 15 action leaves in place the taxpayer’s win in Tesoro Logistics Operations, LLC et al. v. City of Rialto. In its […]
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Former NFL Player Sues FTB Over Residency Issue

By Dakessian Law | May 6, 2019
Law360 (May 6, 2019): ­­ A former NFL player has sued California’s Franchise Tax Board in a dispute over whether he was a resident of the state after being drafted and owes more than $900,000, according to the player’s attorney. On Friday Joseph Keyshawn Johnson, a former wide receiver, sued the Franchise Tax Board in […]
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Successful Challenge of Los Angeles Business Tax Conferred Significant Public Benefit, Court Rules

By Dakessian Law | April 12, 2019
CalTaxletter (April 12, 2019):  A taxpayer’s successful challenge of Los Angeles’ application of a business gross receipts tax “resulted in the enforcement of an important right affecting the public interest – namely compelling the City to adhere to the Municipal Code and to abandon its practice of misclassifying businesses,” a Los Angeles County Superior Court […]
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Lawmakers, Tax Experts Debate Future of BOE

By Dakessian Law | March 18, 2019
TaxAnalysts – State Tax Notes (March 18, 2019):  At the March 6 joint hearing of the Senate Governance and Finance Committee, the Budget and Fiscal Review Committee, and Budget Subcommittee No. 4 on State Administration and General Government, speakers weighed in on whether the BOE — which was stripped of all but its constitutional duties […]
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Wayfair Implementation Bill Clears First Committee With Unanimous Vote

By Dakessian Law | March 1, 2019
CalTaxletter (March 1, 2019):  Legislation to make changes to the California Department and Fee Administration’s implementation of South Dakota v. Wayfair, the U.S. Supreme Court decision relating to sales and use tax on transactions involving out-of-state sellers, was approved February 25 by the Assembly Revenue and Taxation Committee. The bill, AB 147 (Burke), received unanimous, […]
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Agency Denies FTB’s Petition to Rehear Case Involving Football Star Keyshawn Johnson

By Dakessian Law | February 22, 2019
CalTaxletter (February 22, 2019):  The Office of Tax Appeals on February 21 unanimously denied the Franchise Tax Board’s petition to rehear the Appeal of Keyshawn Johnson and Shikiri Johnson, finding no good cause to rehear an appeal decided in Johnson’s favor in 2017 – in the last appeal of an FTB assessment heard by the […]
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San Diego Airport Fights Fees in Hertz Suit Against City’s Port District

By Dakessian Law | August 5, 2018
Law360 (August 5, 2018) — Hertz Corp. and Enterprise RentACar Co. filed a complaint June 8 in the state Superior Court, challenging the $3.50 per rental car transaction fee imposed by the Port of San Diego in April to raise funds for a parking lot. Because the rental car lots are on airport property, the […]
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IRS Pick to Face Tough Questions on Agency’s Direction

By Dakessian Law | June 28, 2018
The Hill, (June 28, 2018):  The nomination of Chuck Rettig, a Beverly Hills, Calif., tax lawyer, comes at a critical moment for the IRS, which is tasked with implementing the new Republican tax law and needs to quickly modernize its technology. Tax lawyers who know Rettig say his background will be valuable because he understands […]
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New IRS Chief Charles Rettig May Help Reform Embattled Agency

By Dakessian Law | February 12, 2018
Mardiros “Marty” Dakessian of Dakessian Law Ltd. in Los Angeles told Law360 he has known Rettig since around 2000 and that Rettig has the ability to “bring people together” in addition to having demonstrated integrity while representing taxpayers and playing a leadership role in multiple bar associations. Whatever Rettig’s priorities will be, whether they end up […]
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California Governor Appoints Head of New Tax Agency

By Dakessian Law | July 17, 2017
Governor Jerry Brown has appointed Nicolas Maduros as director of the California Department of Tax and Fee Administration as part of a major transition overhauling the State Board of Equalization’s (BOE) long-standing tax authority. Marty Dakessian said he’s hopeful that the Brown administration will consider input from stakeholders as it takes over the BOE’s adjudicative […]
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Bill to Overhaul California BOE Racing Through Legislature

By Dakessian Law | June 15, 2017
California Legislature seeks to pass Assembly Bill 102 (A.B. 102) as part of the state’s budget. A.B. 102 is a significant overhaul of the system for administering California taxes and a significant reduction in responsibilities of the Board of Equalization (BOE). If enacted, A.B. 102 would establish two new agencies – the California Department of […]
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Retroactive Tax Laws Muddying Businesses’ Future Decisions

By Dakessian Law | May 22, 2017
According to Mardiros “Marty” Dakessian of Dakessian Law Ltd., the justices dropped the ball on offering clarity on a longstanding issue that has left businesses vulnerable to the “dangerous” possibility of states overturning court decisions through legislative action. “Michigan has undermined the rule of law in their own state,” Dakessian said. “In my opinion, by […]
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FTB Riding High After Summary Judgment Win in Harley Commerce Clause Case

By Dakessian Law | November 2, 2016
A San Diego trial court has ruled in favor of the FTB in what could be one of the biggest cases in the history of California tax litigation (ruling attached). The case of Harley-Davidson v. Franchise Tax Board concerns whether a California law that allows only in-state taxpayers to elect unitary or separate company filing […]
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Marty Dakessian Featured in Bloomberg BNA Report about LA’s Hotel Tax on AirBNB

By Dakessian Law | August 1, 2016
In a recent Bloomberg BNA report, Los Angeles City Attorney Mike Feuer filed four civil and criminal complaints against landlords who were renting out apartment buildings through AirBNB. The city attorney alleged that the landlords were engaged in illegal activity that was exacerbating the City’s shortage of affordable housing. These civil actions follow a recent […]
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California Franchise Tax Board Recognizes Taxpayers Will Appeal Gillette Ruling

By Dakessian Law | February 29, 2016
Since the Gillette Co. v. Franchise Tax Board ruling plans to be appealed in the United States Supreme Court, the California FTB is recommending taxpayers and their representatives to wait until the conclusion of litigation before taking action on cases regarding the Multistate Tax Compact election issue. On December 31, 2015, the California Supreme Court […]
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California Supreme Court Rules Against Taxpayers in Multistate Tax Compact Apportionment Case

By Dakessian Law | January 11, 2016
Reversing the California Court of Appeal in a case in which the issue was whether, for years between 1993 and 2005, multistate businesses (Taxpayers) could elect the standard, i.e., equal-weighted, 3-factor apportionment formula set forth in the Multistate Tax Compact (Compact) for purposes of apportioning their business income to California or were required to use […]
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Attorney Dakessian Talks About Court Upholding Tax Law That Helps CA Businesses

By Dakessian Law | January 1, 2016
As of late December 2015, the Supreme Court upheld a state law that readjusted multistate businesses’ income taxes; however, it only helped the companies based in California and harmed out-of-state businesses. This ruling impacted six major firms, including Proctor & Gamble, Sigma-Aldrich, Jones Apparel Group, Gillette, Kimberly-Clark and RB Holdings. They sought a $34 million […]
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Judge awards firm $1.2 million in fees in taxation case

By Dakessian Law | June 18, 2013
In 2013, Attorney Dakessian represented a real estate company in Nevada that was being subjected to taxation in California. The real estate firm was told to pay $2.27 million in back taxes by the Franchise Tax Board in 2000, after being audited. The owner of the firm was a resident of California and he paid […]
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Dakessian quoted in LA Daily Journal regarding FTB’s retroactively elimination of tax incentive

By Dakessian Law | April 15, 2013
Since 1993, California had provided its own version of a federal income tax law that allowed for the sale of qualified small business stock to be excluded as a tax deduction. This was only for company’s who had at least 80% of their payroll and assets within California. The Franchise Tax Board eliminated this tax […]
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