Facebook Employee Owes More California Tax on Stock Income

The California Franchise Tax Board reasonably calculated the amount of state income tax a Facebook Inc. employee owes on 96,035 stock options that vested in 2012 when he was no longer a state resident, the state Office of Tax Appeals ruled.

A three-judge panel rejected arguments from Nathan Prince that the tax should be based on the value of the stock on his last day of work in California in 2010, which was $7.27 per share, minus the price on the dates he was issued the stock in 2007, 2009, and 2010.

Prince said his formula ...