A new ruling from the U.S. Supreme Court is good tax news for companies that operate in multiple states.
The case involved a packaging company that was based in Ohio and did business in Illinois. The company had a separate Ohio-based subsidiary with an unrelated information-technology business. When the company sold the subsidiary, it had a significant capital gain.
Illinois wanted to impose a tax on a part of the capital gain. It said it should be able to do so because the parent company did business in Illinois, and the subsidiary was part of its operations. [Read more…]