The First Appellate District affirmed in part and reversed in part a judgment. The court held that a state levy imposed on a limited liability company which had significant business dealings in other states and which was assessed based on that company’s entire earnings, without regard to their source, violated the Commerce Clause of the United States Constitution.
Northwest Energetic Services, LLC was a limited liability company (LLC) organized under the laws of the State of Washington, with business locations in Washington and Oregon. It engaged in the business of distributing explosives and explosives-related services to customers in Washington, Montana, Oregon, and Idaho. Northwest did not do business in California. It nonetheless registered as an LLC with the California Secretary of State in June 1997.
