SALT To Taste: U.S. Supreme Court Denies Certiorari in Blue Bell Creameries

Geoff Christian; Kellie Lanford
The U.S. Supreme Court recently decided not to grant certiorari in Blue Bell Creameries.  As a result, the Tennessee Supreme Court's decision will stand.  Taxpayers should be aware of the potentially bad precedent and dangerous trend set by the Tennessee decision.

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SALT To Taste: Taxpayer Gets "Creamed" Pursuant to Court's Application of the Operational Function Analysis

The Tennessee Supreme Court characterized capital gains recognized as part of a taxpayer's reorganization as apportionable business income under the unitary/operational function test and Tennessee's statutory functional test.  This edition of our newsletter focuses on the Tennessee Supreme Court's application of the operational function analysis while our last newsletter (see "Tennessee Supreme Court Freezes Taxpayer Arguments in Blue Bell Creameries Case") looked at the Court's analysis of the capital gains pursuant to Tennessee's statutory functional test.

Read this SALT To Taste newsletter here.

SALT To Taste: Tennessee Supreme Court Freezes Taxpayer Arguments in Blue Bell Creameries

The first of two newsletters discussing the Tennessee Supreme Court's recent decision.  This newsletter discusses the Court's analysis of the capital gains pursuant to Tennessee's functional test.  Our upcoming newsletter will include a discussion of the Court's application of the operational function analysis as a part of the unitary business principle.

Read this SALT To Taste newsletter here.

SALT To Taste: It Serves an Operational Function to Whom? Many States are Applying 'Operational Function' in the Wrong Direction

One of the many areas of confusion and misapplication that we see, when states assert taxation of income based on an operational function concept, is determining in which taxing jurisdiction the operational function is served, thereby resulting in that state’s ability to tax non-domiciliary income earned from a separate asset.  In evaluating application of the operational function concept, the basic questions with which to begin are who or what is serving the operational function; to whom is the operational function being served; and where is the recipient of this benefit located?  It’s very possible the state has itself turned around and is lost on the operational function path.

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