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It’s Time To Invalidate Single-Sales Factor For Biz Income Tax

By Dakessian Law | December 7, 2020

Law360 (December 7, 2020) — We predict the 2020s will see just as seismic a shift in state tax constitutional law as the 2010s did with South Dakota v. Wayfair Inc.[1] Single-sales-factor apportionment will be subjected to a modern, nuanced judicial analysis, and another decades-old foundational precedent, Moorman Manufacturing Co. v. Bair[2] — upholding single-sales factor against constitutional challenge — will be reversed. 

Our analysis of this issue has focused primarily on California[3] but the implications reach far and wide; by our count, 25 states employed a single-sales factor formula for corporate income tax apportionment this year.


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