National Taxpayers Union (NTU) on Thursday announced an appeal filed on behalf of California taxpayers against a retroactive and confusing business tax.
The case, National Taxpayers Union v. California Franchise Tax Board, et al., Cal. Sup. Ct. Sacramento Case No. C24CV016118, challenges California Revenue and Taxation Code section 25128.9 with three causes of action:
- The law uses vague language that is difficult to comply with, in violation of the Due Process Clause of the U.S. Constitution.
- The retroactive application of the law, potentially back 57 years, violates the Due Process Clause of the U.S. Constitution.
- The retroactive application of the law also violates the Due Process Clause of the California Constitution.
The appeal to the California Court of Appeal follows the December 2 decision by the Superior Court for Sacramento County that NTU must first exhaust administrative remedies with the Franchise Tax Board even though it is a non-profit taxpayer advocacy organization, not a corporate taxpayer.
The judge also suggested that NTU could name its members to establish legal standing, but NTU invoked a First Amendment right to refuse to do so.
“California taxpayers should not have to toil under vague, confusing, retroactive policy just to comply with the law,” said Joe Bishop-Henchman, National Taxpayers Union Foundation Executive Vice President. “Our appeal seeks certainty by striking down the entire law.”
National Taxpayers Union is the only free-market organization for taxpayers that unites effective advocacy with useful research about how to limit taxes, spending, and regulation at every level and branch of government—state, federal, administrative, and judicial.
NTU Foundation’s Taxpayer Defense Center is the nation’s only public interest law firm dedicated solely to defending taxpayers against overzealous and unfair tax administration.