Franchise Tax Board (FTB) to hold Interested Parties meeting on Market Based Sourcing (FTB regulation 25136-2): Early look on their position on “Look Through “.
The only time FTB would look through to the second tier, i.e. customer’s customer, is if the sale were a sale of a marketing intangible or a marketing service. Otherwise FTB will only look to the first tier, i.e. the customer of the taxpayer. Things just got easier!
Check out this link: