In the latest episode of the GeTtin' SALTy podcast, host Nikki Dobay and guest Shail Shah, both shareholders at Greenberg Traurig, discuss the complexities of California's state and local tax landscape as 2025 begins. The episode kicks off with a surprising announcement from Governor Gavin Newsom: California has shifted from a significant budget deficit to a surplus.

The discussion delves into the implications of this fiscal roller coaster, with Shail offering insights into Governor Newsom's positioning on taxes. The conversation explores indirect tax increases through adjustments in apportionment factors and deductions.

Nikki and Shail address the changes in California's apportionment rules from the 2024 budget. They provide updates on legal challenges against these retroactive changes, with organizations like the National Taxpayers Union questioning the constitutionality. This litigation is likely to shape the tax landscape in 2025, with potential outcomes still uncertain.

They also tackle the topic of California's market-based sourcing regulations, which have been in development since 2017, and the future of FTB (Franchise Tax Board) guidance.

The episode concludes with a surprise non-tax question about the perils of a malfunctioning coffee maker.