California Court of Appeal Affirms Dismissal of Taxpayer’s Lawsuit

The California Court of Appeal affirmed a lower court ruling dismissing taxpayer’s lawsuit against the California Department of Tax and Fee Administration. Taxpayer was assessed over $700,000 in unpaid sales taxes incurred by an unlicensed cannabis business operating on taxpayer’s property. Taxpayer sued to stop the Department’s sale of its property to collect the unpaid taxes without first paying the assessment or filing a government claim as required. The Court held that taxpayer’s failure to pay the tax assessment or file a claim before suing barred its action. [Emerald Seven LLC v. Cal. Dep’t of Tax & Fee Admin., Cal. ...