Attorney General James Uthmeier of Florida has filed a complaint with the United States Supreme Court against California, challenging its tax rules that affect businesses operating in multiple states. The legal action alleges that California’s taxation methods are unconstitutional and negatively impact Florida’s economy.
“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.”
The complaint claims that California uses a formula for calculating taxable income for multi-state corporations that excludes certain large transactions, such as property sales, from consideration. According to the filing, this “special rule” is intended to discourage companies from relocating or conducting operations outside of California.
The document further argues that these practices violate several provisions of the United States Constitution, including the Commerce Clause, Import-Export Clause, and Due Process Clause. It also asserts that these measures penalize companies seeking to expand beyond California and create barriers to interstate commerce.
Attorney General Uthmeier has requested the Supreme Court declare California’s special rule unconstitutional and prevent its enforcement.
Additional details can be found in the bill of complaint.
