DMICPA tells us from his thread below (Prop 39) that California will no longer allow the weighted calculation of a three-factor formula (Sales, Property, Payroll). Instead they apparently will consider Sales Factor only.
I have a client that never sets foot in California but has a NASA procurement contract that sends about $1MM in goods to a California customer every year. They also further define sales as "origin sales" and "destination sales." His corporation would never operate there, so there would be no "origin" sales. However, he would need to report "Destination Sales" accordingly with his million dollar shipments.
From what DMICPA tells me, he now will not be able to water down his apportionment percentage with the payroll and property factors. If this be true, he is going to have a fit.
Comments??
I have a client that never sets foot in California but has a NASA procurement contract that sends about $1MM in goods to a California customer every year. They also further define sales as "origin sales" and "destination sales." His corporation would never operate there, so there would be no "origin" sales. However, he would need to report "Destination Sales" accordingly with his million dollar shipments.
From what DMICPA tells me, he now will not be able to water down his apportionment percentage with the payroll and property factors. If this be true, he is going to have a fit.
Comments??