Attention Refugees From California

If you have recently escaped from the progressive state of California, you need to read this article.

If you live in California, you probably know how aggressive California’s state tax agency can be. In fact, even if you live somewhere else, you might have heard of the Golden State’s aggressive tax rules. Buy a vacation home in California, and stay a little too long? Come into the state and do some work for your non-California employer? Travel to California trying to sell some products or collect data that you’ll use out of state when you get back home?

Any of these things and many others can pique the interest of California’s tax collection agency, the Franchise Tax Board. In fact, it can feel like just about any connection to California can be enough to at least raise tax issues.

Does this .... mean other little businesses that happen to sell into in California could face tax troubles? Yes, it sure seems that way. California can now push even on sole proprietors who might have California customers. They might have to file California returns and pay California taxes. This is so even if all the services are performed outside of California, and even if the sole proprietor has no connection to California.