Financial Services State and Local Tax Newsletter - Vol 34

February 06, 2025

In this edition

Hello,

As we step into the new year, it is a great time for tax teams to reassess, refocus and reaffirm our goals, both personally and professionally. In the world of state and local taxation, this time of year is pivotal as we prepare for the upcoming spring tax deadlines and possible significant federal tax changes in 2025. Our team is dedicated to keeping you informed and prepared as you navigate these important changes and helping to meet your compliance requirements and business goals.

In this edition, our spotlight article is on California, where our thoughts are with so many who have suffered tragic losses. Taxpayers who have been affected by this disaster should be aware of the tax relief for Los Angeles taxpayers in response to the devastating wildfires, which includes extensions for filing and paying certain taxes. Additionally, Governor Gavin Newsom's proposed budget introduces key changes, including the extension of the Pass-Through Entity Tax and amendments to apportionment rules for financial institutions. Finally, a public hearing was held January 30, 2025, which discussed proposed amendments to the market-based sourcing regulations.

We hope you find this edition insightful and valuable as you plan for the year ahead. As always, our team is here to assist you with any questions or challenges you may face.

Warm regards,
Caragh DeLuca
Financial Services State and Local Tax Leader