Sales Factor Gross Receipts Cases Addressed by the California Supreme Court


After years of litigation and speculation, the California Supreme Court issued its decisions in Microsoft Corp. v. Franchise Tax Board, 139 P.3d 1169 (Cal. 2006) (“Microsoft”) and General Motors Corp. v. Franchise Tax Board, 139 P.3d 1183 (Cal. 2006) (“General Motors”). Both cases presented the Revenue and Taxation Code section (“section”) 25120 “gross receipts” issue and the section

25137 “distortion” issue. The decisions will unquestionably have varied and widespread effects on many taxpayers doing business in California.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.