GeTtin' SALTy Podcast

California Court of Appeal Rejects FTB's Unitary Business Theory for Individuals in Garcia-Rojas: A Win for Non-Resident Sole Proprietors

In this episode of the GeTtin' SALTy podcast, host Nikki Dobay is joined by Greenberg Traurig colleagues Brad Marsh and Jennifer Vincent to discuss a significant recent victory in the California Court of Appeal - First Appellate District: Xavier Garcia-Rojas v. Franchise Tax Board. The case involved a Texas-based radiologist who performed all of his work from his home state yet faced California income tax assessments on his earnings from a contract with a California-based company. Brad and Jen walk through the factual background of the case, explain how the Franchise Tax Board attempted to apply the unitary business principle to a sole proprietor conducting a single business activity, and describe why the Court of Appeal rejected that theory. The episode includes a practical note for practitioners: non-resident individuals who have been assessed California tax under the Bindley framework may now have strong grounds to file refund claims in light of this decision. They wrap up the discussion with a lighthearted round of concert recommendations.

AB 1790: California's Push to Repeal the Water's Edge Election - Loophole or Sound Tax Policy?

In this episode of Greenberg Traurig's GeTtin' SALTy podcast, host Nikki Dobay is joined by Peter Blocker, Vice President of Policy at the California Taxpayers Association, and Alan Pasetsky, Owner and Founder of Tax Policy LLC, for an in-depth discussion of California Assembly Bill 1790 - a measure that, if passed, would repeal California's Water's Edge election for corporate income tax purposes. The conversation covers the fiscal and political backdrop driving the bill, including California's projected multi-billion dollar budget shortfall and pressure from the State Employee Union (SEIU) to identify new revenue sources. The guests discuss the characterization of the Water's Edge election as a "loophole," explaining its long-standing role in state tax policy, its use in the majority of states with combined reporting regimes, and the risks of double taxation and compliance burdens that worldwide combined reporting would create. They also examine the international dimension of the proposal, including a letter signed by eight foreign governments expressing concern about potential double taxation and the prospect of retaliatory trade measures against California businesses. Peter and Alan outline the opposition coalition being led by CalTax, the legislative path forward through the Assembly Appropriations Committee and the May 14th suspense hearing, the two-thirds vote requirement, and the possibility that the measure could be folded into the budget process. The episode closes with a look at the longer-term landscape, including the governor's stated opposition to tax increases and the implications for California's upcoming gubernatorial race.

Data Centers and the Sales Tax Misnomer

In this episode of the GeTtin' SALTy podcast, host Nikki Dobay is joined by Jared Walczak, Senior Fellow at the Tax Foundation and founder of the Walczak Policy Consulting Group, for a focused discussion on the evolving state and local tax treatment of data centers. Jared explains how many states initially structured their favorable treatment of data center equipment as targeted incentives rather than incorporating that treatment into their existing business input exemption structure (i.e., manufacturing/machinery and equipment exemptions). While the practical effect was largely the same at the time, this framing decision has created significant political and policy complications. As state revenues have normalized and public sentiment toward data centers has grown more mixed in some communities, those incentives have come under increasing scrutiny -- with lawmakers questioning why the state is "giving away" revenue, a framing that would not arise if the exemption had been built into the standard sales tax framework from the outset. Nikki and Jared discuss the core policy argument: that data center equipment is a classic business input, no different in principle from manufacturing machinery and equipment, and that subjecting it to sales tax runs counter to the foundational design of a consumption-based tax. They also address the economic stakes, including the capital-intensive nature of data center investment, the regular refresh cycles driven by AI and technological advancement, and the significant local tax revenues these facilities generate through real and personal property taxes. The episode closes with a look at the broader competitive landscape -- including the relevance of foreign VAT regimes -- and a reminder that the question for states is not whether data centers will be built, but where.

Washington's Historic Session: A New Income Tax, a Farewell to the Penny, and What Comes Next

In this episode of GeTtin' SALTy, podcast host Nikki Dobay welcomes back Representative April Berg of Washington's 44th District for a deep dive into the 2026 landmark 60-day legislative session in Olympia. Rep. Berg walks through the passage of Washington's new tax - a 9.9% levy on individual income exceeding $1 million - marking the first time Washington, one of a handful of states without an income tax, has enacted one. The conversation covers the constitutional backdrop of the uniformity clause, the century-old case, and why lawmakers believe the new law is on solid legal footing. They also discuss the consumer relief provisions bundled into the legislation, including sales tax exemptions on groceries, personal hygiene products, diapers, and over-the-counter medications, as well as a meaningful increase in the B&O tax threshold for small businesses. The episode also touches on the comprehensive legislation Washington enacted in response to the federal elimination of the penny, cleanup fixes to prior legislation, and the anticipated legal challenges ahead. Rep. Berg closes with a preview of her next priority: replacing Washington's business and occupation tax with a margins tax in the upcoming session.

Oregon's 2026 Short Session Debrief: Transportation, Conformity, and the Politics of Tax Policy

In this post-session episode of the GeTtin' SALTy podcast, host Nikki Dobay is joined by Jeff Newgard of Peak Policy for a comprehensive debrief on Oregon's 2026 short legislative session. Despite being limited to just 35 days, the session tackled a high volume of significant issues. Jeff and Nikki walk through the major tax and policy developments from the session, including the transportation funding referendum, which now heads to a May primary election amid active legal challenges. They discuss the conformity debate and the legislature's decision to disconnect from select federal tax provisions following passage of the One Big Beautiful Act, as well as the fate of proposals targeting Oregon's treatment of international income, including NCTI and FDII. The conversation also covers changes to Oregon's transient lodging tax distribution model. Jeff and Nikki close with a discussion of the estate tax threshold debate and the growing trend of creative legislative strategies designed to circumvent Oregon's supermajority requirement for tax increases - a development that may be a concern for the business community.