Green Light, Red Light or Blue Light? New Mexico Supreme Court Sends Mixed Signals with Kmart Decision.
Mondaq Business Briefing › Nbr. 2006, January 2006
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Green Light, Red Light or Blue Light? New Mexico Supreme Court Sends Mixed Signals with Kmart Decision.
Originally published December 30, 2005
On the eve of the New Year, the New Mexico Supreme Court handed down its long-awaited decision in the Kmart case involving the state's power to subject an out-of-state intangible holding company to gross receipts and income tax on royalties from licensing trademarks and trade names to a related in-state licensee. Kmart Corp. v. Taxation and Revenue Department, No. 27,269, N.M. Sup. Ct., Dec. 29, 2005. From a taxpayer's perspective, there is good news and bad news in the decision. The good news is that the taxpayer prevailed on the gross receipts tax issue, although on narrow statutory grounds. The court held the tax did not apply t...See the full content of this document
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