Supreme Court Won’t Allow Florida to Sue California Over Business Tax Policy

Florida argued that California created an unconstitutional scheme that penalizes companies that move out of the Golden State.

The Supreme Court in Washington on May 21, 2026. Madalina Kilroy/The Epoch Times

The U.S. Supreme Court on June 1 decided not to allow Florida to sue California over its business tax policy, which it claimed unfairly deprives it and other states of tax revenue.

California created “an unconstitutional business income apportionment scheme that rewards corporations that keep their operations in California and penalizes those that move out,” Florida said in its bill of complaint filed with the high court in October 2025. Florida had asked the court to declare the policy unconstitutional.