California attempted to narrow the scope of the federal preemption on state taxation under PL 86-272, but its efforts have taken a hit as the state’s guidance has been found void.

Nearly two years after California released Technical Advice Memorandum (TAM) 2022-01 and Franchise Tax Board (FTB) Publication 1050 – which provided updated guidance on the state’s application of Public Law 86-272 to internet activities – the California Superior Court for San Francisco County held that the guidance was void.