« Columbia v. NYU, Round #2 | Main | Seto on Drafting a Federal Balanced Budget Amendment »
March 9, 2006
California LLC Gross Receipts Tax Ruled Unconstitutional
In Northwest Energetic Services LLC v. California Franchise Tax Board, No. CGC 05-437721 (Mar. 3, 2006), the California Superior Court in San Francisco held that the California gross receipts tax levied on LLCs violates the Commerce Clause. (Hat Tip: Myreon M. Hodur.)
Update: Joe Kristan has a detailed analysis of the decision here.
March 9, 2006 in New Cases | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c4eab53ef00d8342490c053ef
Listed below are links to weblogs that reference California LLC Gross Receipts Tax Ruled Unconstitutional:
» CALIFORNIA, HERE WE COME (WITH OUR REFUND CLAIMS) from Roth & Company, P.C.
A California judge has ruled the state's "franchise fee" on limited liability companies unconstitutional. It's about time. (Hat Tip: TaxProf... [Read More]
Tracked on Mar 9, 2006 7:41:00 AM
» California LLC Gross Receipts Tax Unconstitutional But... from Taxable Talk
And it's a big but.
Thanks to the TaxProfBlog and Roth Tax Updates for giving me the tip on a case decided in San Francisco, [Read More]
Tracked on Mar 9, 2006 11:16:17 AM
» California LLC gross receipts tax: jurisdictional competition strikes again from Ideoblog
Suppose a state taxes corporations through an income-based franchise tax. It's finally pressured by jurisdictional competition – indeed, by every other state – to have a limited liability company statute. If you allow the LLC, you need to make sure [Read More]
Tracked on Mar 9, 2006 11:33:32 AM
Comments
I realize a single member California LLC has to pay the $800 FTB fee, but does it have to pay the potential extra gross recepipts tax? (operations in California).
Also, does the gross receipts tax apply to passive rental income?
Thanks!
Edward
Posted by: Edward Brown | Feb 5, 2009 3:44:31 PM
