I Want a Refund: The Inadequate Opinion of Northwest Energetic Services, LLC v. California Franchise Tax BoardExpressO (2009)
AbstractThe California Franchise Tax Board has received numerous claims for refunds from LLCs based on two cases that found a levy charged to LLCs registered in California unconstitutional because it was not fairly apportioned. The California Court of Appeal in Northwest Energetic Services, LLC v. California Franchise Tax Board held that the levy required by section 17942 of the California Revenue and Taxation Code violated the Commerce Clause and was therefore unconstitutional. In making its decision, the Appellate Court focused on the levy’s reference to “total income,” which the Appellate Court determined was income “wherever earned, and without apportionment according to the percentage of business or income attributable to activities within the state.” This Note closely examines the reasoning behind the Northwest decision, while arguing that parts of the decision are extraneous and the essential question of the meaning of section 17942 is examined in a cursory and incomplete manner by the court.
- LLC Act,
Publication DateApril 16, 2009
Citation InformationNathanael Cho. "I Want a Refund: The Inadequate Opinion of Northwest Energetic Services, LLC v. California Franchise Tax Board" ExpressO (2009)
Available at: http://works.bepress.com/nathanael_cho/1/