California – Gross receipts were not excluded from sales factor as occasional sales

The SBE found that gross receipts from a diversified media corporation’s sales of 13 television stations located outside of California were not excluded from the sales factor under the occasional sale rule. While no formal opinion or letter decision has been issued, the decision provides some guidance as to how the SBE addresses the occasional sale rule. The Board apparently did not reach the issue of the potentially distortive effect of income inclusion without factor representation.

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