Main Menu
Date: September 5, 2022
Tax Notes State

Larry Brant discusses in Tax Notes State the recent Oregon Tax Court ruling in Santa Fe Natural Tobacco Co. v. Department of Revenue, which found that the out-of-state tobacco manufacturer is subject to Oregon’s corporation excise tax. The court determined that Santa Fe Natural Tobacco lost its immunity to the net income tax because its policy requiring wholesale customers to accept all returned goods and the pre-book orders made by its representatives exceed P.L. 86-272 protection.

Larry notes that Santa Fe “exemplifies a possible erosion to the protections afforded by P.L. 86-272” and “reflects the close scrutiny states are taking with respect to P.L. 86-272 and out-of-state taxpayer activity.” He also states that the case is an extension of the Oregon Tax Court decision in Ann Sacks Tile & Stone v. Department of Revenue, which held that plumbers with whom Kohler Inc. had contracted to meet its warranty obligations were performing the work on behalf of the company and that the activity was beyond the protection of P.L. 86-272.

Read the full Tax Notes State article.

Related Services

Back to Page

We use cookies to improve your experience on our website. By continuing to use our website, you agree to the use of cookies. To learn more about how we use cookies, please see our Cookie Policy.