Thinking of Purchasing an Aircraft…Read this First!

If you are one of the fortunate California residents that have the means and wherewithal to purchase your own private aircraft, you need to make sure and finish reading this article before you sign on the dotted line.

With tax rates at historic levels in California (over 10% in some jurisdictions) the amount of use tax owed on your new ‘bird’ may be a six-figure sum. Wouldn’t it be great if there was a way to legally avoid paying use tax on that transaction? Well in California, while the options to eliminate your tax burden have been significantly narrowed from previous […]

McClellan Davis Lobbies for Taxpayer Safeguards

Tobacco products that are “lost through theft” are currently deemed to have been distributed and are thereby taxable.

The Board of Equalization Tax Policy Division is in the process of proposing two additional regulations for the Board’s approval at the January 2016 Board Meeting.  The two regulations- 4076, Wholesale Cost of Tobacco Products and 4001, Retail Stock are intended to provide definitions for the wholesale cost of tobacco products and retail stock, respectively, as they relate to the Cigarette and Tobacco Products Tax.

McClellan Davis is working in conjunction with staff from Board […]

Qualifying factors for California’s Manufacturing Exemption

California recently joined the majority of states when it enacted a partial sales and use tax exemption for property purchased for use in manufacturing and research and development. The exemption is established under Revenue and Code section 6377.1, as further explained under Sales and Use Tax Regulation 1525.4 with an effective date of July 1, 2014. The exemption is subject to a two hundred million annual cap, and it effectively reduces the tax rate by approximately four percent (4%) to the otherwise applicable rate. It actually applies to a rather broad scope of industries and even extends to real property […]