By Howard Fischer | Capitol Media Services via Arizona Capitol Times
Attorney General Mark Brnovich is getting some allies in his legal fight with California over that state’s efforts to tax Arizona businesses and individuals.
In new legal briefs, the Southeastern Legal Foundation and the Cato Institute tell the U.S. Supreme Court that California has “run roughshod” over the Due Process Clause of the U.S. Constitution by imposing its own business taxes on those whose connection to California companies is “purely passive investment.”
The attorneys for the two groups argue that it is illegal for California in trying to argue that those who have ownership interests in limited liability companies in that state are themselves doing business there. And that, California contends, subjects the LLC owners to the state’s $800 annual tax.
Others also are siding with Arizona in the fight.
