Navigating Complex Local Taxes: NYC, California Cities, and the State–Local Divide

This webinar will examine the complex and often inconsistent landscape of state and local taxation, focusing on unique municipal tax regimes including New York City, San Francisco, and Los Angeles. Our panel of notable local tax specialists will analyze how cities impose taxes that differ significantly from state systems, creating compliance challenges and planning opportunities for practitioners advising multistate businesses and individuals.

New York City provides a leading example of local tax complexity, including the Commercial Rent Tax (CRT), which applies to certain tenants leasing commercial property in Manhattan with annual rents exceeding $250,000 at an effective rate of approximately 3.9%. The city also imposes the Unincorporated Business Tax (UBT), a 4% tax on income allocated to NYC from partnerships, LLCs, and sole proprietors.

On the West Coast, cities such as San Francisco and Los Angeles highlight how local tax structures diverge not only from state law but also from each other. San Francisco has recently implemented updated sourcing and apportionment rules under Proposition M, shifting to a more market‑based framework where receipts are sourced based on where the benefit of services is received. At the same time, Los Angeles administers a gross receipts-based business tax that varies by business classification and activity, requiring taxpayers to determine liability based on specific categories (e.g., professions, retail, wholesale). These regimes operate alongside other local taxes, creating overlapping compliance considerations.

Listen as our panel of state and local tax professionals examines the unique taxes imposed by New York City, Los Angeles, and San Francisco, analyzes the interaction between city and state taxing authority, and addresses the planning and compliance challenges these issues create for businesses and their tax advisers.