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California court grants FTB’s motion for summary judgment in Harley-Davidson case

On remand from the California Court of Appeal, a San Diego trial court granted a California Franchise Tax Board (FTB) motion for summary judgment on the issue of whether a California statute discriminates against multistate taxpayers under the Commerce Clause by providing only intrastate unitary businesses with an election to compute their tax on a separate accounting method or combined reporting method. The trial court ruled that although the statute may be discriminatory, the statute is permissible because the state has a legitimate interest in ensuring the accurate accounting of business income from interstate activities.