Experience

STATE & LOCAL TAX ADVOCACY – Representative Matters – Litigation

Tax Litigation:

Nielsen Merksamer lawyers have also been involved in a direct or amicus capacity in a number of high profile tax cases decided by California courts. These include

  • General Motors v. Franchise Tax Board, 39 Cal. 4th 773 (2006) (because a repurchase agreement had the characteristics of a loan, only the interest received in such transactions could be treated as gross receipts when calculating the income tax apportionment of a unitary business group under the Uniform Division of Income for Tax Purposes Act).
  • Heather Preston v. State Board of Equalization, 105 Cal. 4th 197 (2001) (only portion of income attributable to temporary transfer of tangible artwork was subject to sales tax. Transfer of copyrights using technology transfer agreements was not taxable though tangible personal property was also transferred).
  • Sinclair Paint v. State Board of Equalization, 15 Cal. 4th 866 (1997) (the seminal California case setting forth the test for distinguishing between taxes requiring two-thirds legislative approval and regulatory fees requiring simple majority legislative approval).
  • Rossi v. Brown, 9 Cal. 4th 688 (1995) (though the California Constitution prohibits referenda against tax statutes, voters could use the initiative power to repeal a tax and prevent its readoption).
  • Title Insurance of Minnesota v. State Board of Equalization, 4 Cal. 4th 715 (1992) (payments made by an underwritten title company to satisfy its obligation to pay certain portions of policy claims were not income for purposes of calculating the title insurer’s tax burden).
  • Colgate-Palmolive, Co. v. Franchise Tax Board, 512 U.S. 298, 129 L. Ed. 2d 244, 114 S. Ct. 2268 (1994) (upheld constitutionality of California’s worldwide reporting system for allocating income of domestic-based multinational corporations, as we urged in an amicus curiae brief).