Monday 11th of December 2017 12:23:18 AM

  • But I live in New Jersey!

    Friday 14th of December 2012 11:40:04 AM

    Imagine this, a business owner from New Jersey gets a bill in the mail that they owe the State of California income taxes. Keep in mind this business owner has never stepped foot in California let alone worked there.  Although, they have a successful business on-line and it just so happens that some of their customers are from California. Well, that just doesn’t make sense, or does it?

    According to California’s Revenue and Taxation Code section 23101, if you are doing business in the state of California you are responsible for Income taxes. The code used to say that businesses would have to have physical presence in California in order to be taxed. Now it says that just by collecting revenue from the state then businesses are responsible for Income taxes.

    Seem completely unfair. As if it wasn’t enough that California legislatures had the ability to tax their own residents now they want to step outside California’s borders?

    I can feel a court challenge coming up. Sadly, most small businesses won’t have the financial resources to take on the State of California alone. This would have to be done as a class action suit by many smaller scale companies or by a large company that has the financial resources to stand up for themselves.

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