Pacific Life Says Florida Improperly Taxed Nonbusiness Income

Pacific Life Insurance Co. is asking a Florida court to invalidate a $10.7 million corporate income tax bill, arguing the state revenue department shouldn’t have taxed its gain from the sale of an aircraft leasing business.

The investment in Aviation Capital Group LLC wasn’t integral to Pacific Life’s business and the gain didn’t arise in the regular course of its insurance trade, the company told the Florida Circuit Court for Leon County in a complaint filed July 7.

Therefore, the gain is properly classified as “nonbusiness income” that shouldn’t have been included when determining what portion of Pacific Life’s total ...