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Franchise Tax Board Holds Interested Parties Meeting on Bank Taxation

In what may yet result in the most significant change to state tax law for banks in years, the Franchise Tax Board (FTB) held an interested parties meeting on broker dealer bank operations last Thursday, December 4. The FTB is attempting to discern whether or not to move forward with a reg project that may alter the apportionment formula for banks with broker dealer operations. The purpose of the meeting was to elicit public input and discussion regarding a possible regulatory effort under Revenue and Taxation Code section 25137 to address the apportionment issues that arise when a combined reporting group consists of both financial and general corporations. CBA will work with members of the associations Taxation Committee to determine whether or not consensus can be reached for a uniformed response to the FTB’s request. Please see the following discussion paper from the FTB here for more information.

For additional details please contact Jason Lane, vice president of government relations at jlane@calbankers.com.

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