There’s been some news on Arizona’s attempt to stop California from requiring indirect passive owners of LLCs who happen to own other LLCs that invest in California from having to pay California’s $800 minimum franchise tax.
When we last looked at this, the Supreme Court asked the Solicitor General (of the U.S.) to file a brief commenting on the case. That brief has been filed. The Solicitor General believes that the motion to file a bill of complaint should be denied because, “…this is not an appropriate case for the exercise of this Court’s original jurisdiction.” The Solicitor General believes that Arizona entities can file their own lawsuits and that the case is not one appropriate for the Supreme Court.
Not surprisingly, Arizona didn’t like the Solicitor General’s brief and filed a reply brief of its own. Arizona believes that the Solicitor General got it wrong, and that leave should be granted.
It’s probable that the Supreme Court will decide whether or not to grant leave within the next two months.