Tax Attorneys Question Florida Challenge of California Tax Rule

California tax professionals said Florida’s recent lawsuit at the US Supreme Court against a California apportionment rule is unlikely to succeed.

Florida petitioned the high court to block California’s requirement that businesses exclude proceeds from “substantial and occasional” sales from their state tax returns, which Florida says deprives other states of tax and investment revenue and distorts the taxable income California can lay claim to regarding multi-state businesses.

A panel including attorneys at major tax firms and the Franchise Tax Board questioned the suit’s merit Thursday at the California All-Tax Conference in San Diego.

“This is not the first ...