California’s Tax Collectors Continue to Reach Outside California

The word "taxes" is seen engraved at the headquarters of the Internal Revenue Service (IRS) in Washington on May 10, 2021. Andrew Kelly/Reuters

Commentary

For some time now, California has been the worst state in the country when it comes to exploiting the most tangential of connections to claim tax liability. Recently, the state reasserted its claim to this dubious distinction by attempting to claim the right to tax the sale of partnership interests by nonresidents.