 Article
Feeds
|
California LLC Fee Unconstitutional; Filing Protective Claim for Refund |
February 26, 2007
Previously published on April 11, 2006
The
limited liability company fee imposed under
California law recently was held to be unconstitutional
according to the court in Northwest Energetic
Services, LLC v. California Franchise Tax Board (Super.
Ct. San Francisco County, 2006, No. CGC-05-437721).
The decision states that the graduated fee imposed
on the "total income" of an LLC (meaning gross
income plus the cost of goods sold) under Section
17942 of the California Revenue and Taxation Code is
illegal for violating the Commerce Clause and the
Due Process Clause of the U.S. Constitution.
|
The views expressed in this article are solely the views of the author and not Martindale-Hubbell. This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
|
|
RSS | Blogs | Site Map | Contact Us