Attorney General James Uthmeier of Florida has filed a complaint with the United States Supreme Court, challenging California’s tax rules on businesses that operate in multiple states. The legal action was announced from Tallahassee and targets what Florida officials describe as an unconstitutional taxation scheme.
“California has created a tax system that punishes economic freedom,” said Attorney General James Uthmeier. “We will not tolerate California over-taxing revenue earned in Florida. The Newsom regime is obviously attempting to punish business owners who have fled California due to its disastrous policies. Given that multitudes of California businesses and residents are moving to freer states, Newsom’s tax authorities are trying to soften the economic loss by taxing even more aggressively—but they can’t violate the Constitution to do so.”
According to the complaint, California uses a formula for calculating taxable income for multi-state corporations that excludes certain large transactions, such as property sales. The filing argues this “special rule” is designed to deter companies from relocating or expanding outside of California and constitutes a violation of several clauses in the U.S. Constitution, including the Commerce Clause, Import-Export Clause, and Due Process Clause.
The complaint further contends that these practices hinder interstate commerce and penalize businesses seeking to grow beyond California’s borders. Attorney General Uthmeier is asking the Supreme Court to declare this special rule unconstitutional and prevent its enforcement.
For more details, interested parties are directed to consult the bill of complaint.
