State Income Taxation of Mercantile and Manufacturing CorporationsUnited States. Congress. House. Committee on the Judiciary, United States. Congress. House. Committee on the Judiciary. Special Subcommittee on State Taxation of Interstate Commerce U.S. Government Printing Office, 1961 - 651 pages Committee Serial No. 20. Considers state corporate income tax procedure impact on multistate manufacturing and mercantile corporations. Includes discussion of possible adoption of uniform state taxation standards and the possible taxation of interstate business income of non-resident corporations. |
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activities allocation formula applied apportion apportionment formula basis burden California CHAIRMAN collect commerce clause committee compliance costs concerned Congress congressional Connecticut constitutional cost of compliance customers decisions DRABKIN due process EDWIN E effect employees enactment enforcement engaged exemption Federal filed firms foreign corporation franchise tax Georgia impose independent contractors industry International Shoe Co interstate business interstate commerce interstate sales intrastate involved legislation levy located Louisiana manufacturing ment merchandise Minnesota multiple taxation National nexus North Carolina operations payroll Pennsylvania permanent establishment place of business Portland Cement present problem Public Law purchaser question receipts representatives result revenue ROGERS sales factor sales office sales tax salesmen selling separate accounting statement statute STUETZER subcommittee Supreme Court tax administrators tax base tax interstate tax liability tax purposes tax returns taxable taxation of interstate taxing jurisdiction taxpayer tion U.S. Supreme Court uniform York
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Page 132 - It is evident that the criteria by which we mark the boundary line between those activities which justify the subjection of a corporation to suit, and those which do not, cannot be simply mechanical or quantitative. The test is not merely, as has sometimes been suggested, whether the activity, which the corporation has seen fit to procure through its agents in another state, is a little more or a little less.
Page 132 - Whether due process is satisfied must depend rather upon the quality and nature of the activity in relation to the fair and orderly administration of the laws which it was the purpose of the due process clause to insure.
Page 490 - All business income shall be apportioned to this State by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three.
Page 491 - ... the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
Page 439 - ... the solicitation of orders by such person, or his representative, in such State for sales of tangible personal property, which orders are sent outside the State for approval or rejection, and, if approved, are filled by shipment or delivery from a point outside the State...
Page 544 - There is no discrimination. At most, exportation is affected only indirectly and remotely. The tax is levied after exportation is completed, after all expenses are paid and losses adjusted, and after the recipient of the income is free to use it as he chooses. Thus what is taxed — the net income — is as far removed from exportation as are articles intended for export before the exportation begins.
Page 128 - ... no State has the right to lay a tax on interstate commerce in any form, whether by way of duties laid on the transportation of the subjects of that commerce, or on the receipts derived from that transportation, or on the occupation or business of carrying it on, and the reason is that such taxation is a burden on that commerce, and amounts to a regulation of it, which belongs solely to congress.
Page 133 - But to the extent that a corporation exercises the privilege of conducting activities within a state, it enjoys the benefits and protection of the laws of that state. The exercise of that privilege may give rise to obligations, and, so far as those obligations arise out of or are connected with the activities within the state, a procedure which requires the corporation to respond to a suit brought to enforce them can, in most instances, hardly be said to be undue.
Page 649 - This power over commerce among the States, so conferred upon Congress, is complete in itself , ; extends incidentally to every instrument and agent by which such commerce is carried on, 'may be exerted to its utmost extent over every part of such commerce, and is subject to no limitations save such as are prescribed in the Constitution. But, of course, it does not extend to any matter or thing which does not have a real or substantial relation to some part of such commerce.
Page 132 - ... due process requires only that in order to subject a defendant to a judgment in pcrsonam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend "traditional notions of fair play and substantial justice.