Personal income taxes: credits: taxes paid to another state.

The Personal Income Tax Law provides a credit against the taxes imposed by that law to residents for specified taxes paid to another state on income derived from sources within that state. Existing law, for purposes of a calculation used in determining the credit amount, determines that income by applying the nonresident sourcing rules for determining income from sources within California, including the single sales factor apportionment formula. This bill, for purposes of the above-described calculation, would provide that California's single sales factor apportionment formula, and the regulations issued thereunder, shall not be applied in lieu of another state's apportionment rules when determining income derived from sources in that state. This bill would take effect immediately as a tax levy.