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Civil Litigation

Aug. 12, 2024

Out of state companies' lawsuit against California Franchise Tax Board hits potential snag

Plaintiffs had argued that the imposition of minimum taxes on companies with only a passing interest in the state was unconstitutional.

An attorney for a certified class of plaintiffs accusing the California Franchise Tax Board of unconstitutionally imposing taxes on out of state business on Friday accused government attorneys of attempting to "further undermine the case" by floating a potential class decertification motion.

The dispute stems from a pair of consolidated class action lawsuits by two out of state corporations arguing that the California Franchise Tax Board unconstitutionally subjected them...

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