Department
School of Accountancy
Document Type
Article
Publication Date
10-2003
Abstract
Laws can vary significantly in taxing multijurisdictional companies depending on a company's degree of corporate presence in the taxing state, the type and source of income earned, and the type of property used or held in the state. Several critical factors can determine a company's tax liability in a state, including the location of the company's commercial domicile. The US Supreme Court's decision in the Wheeling Steel case regarding commercial domicile is overriding in federal, as well as state courts. Accordingly, multistate companies and their tax advisors should consider the location of central management activities when planning to start or expand a business. Other factors contributing to the determination of commercial domicile also should be reviewed in considering locations for production, administration, and sales functions, in order to minimize the overall tax burden.
Journal Title
Journal of Multistate Taxation and Incentives
Journal ISSN
1533-3124
Volume
13
Issue
7
First Page
6
Last Page
13