Supreme Court Won’t Hear Arizona Challenge to California Tax (1)

The U.S. Supreme Court won’t hear a dispute between Arizona and California over the constitutionality of a California tax on commercial activity.

Arizona sued California in February, challenging its $800 minimum franchise tax on limited liability companies “doing business” in California. The tax applies to businesses that exceed specified thresholds for sales, property ownership, or compensation in California. Arizona was able to file its initial suit directly with the Supreme Court because the high court can assert original jurisdiction over disputes between state governments.

The Supreme Court on Monday denied leave to file a bill of complaint. Justice ...