Chief
04-13-2007, 06:54 AM
http://www.oregonlive.com/newsflash/washingtonstate/index.ssf?/base/news-27/1176425970286250.xml&storylist=orwashington
OLYMPIA, Wash. (AP) — Washington cities can impose a business tax on Ford Motor Co.'s wholesale sales to dealers, a divided state Supreme Court held Thursday.
Ford, a Delaware corporation with its main operations in Michigan, had challenged business and occupation taxes levied by Seattle and Tacoma on various wholesale-related business within their borders. The Seattle tax bill was about $400,000 and the Tacoma bill, for a longer time period, was more than $1.3 million. Ford paid, but appealed.
Ford has an office in the Seattle suburb of Bellevue, but has no plants in the state and doesn't directly sell vehicles in either Seattle or Tacoma. But Ford sells vehicles, parts and accessories to car dealers and promotes its products and sells warranties.
The high court, in a 5-4 decision, upheld the local business and occupation taxes on the company's wholesale sales to dealers.
"Ford has stipulated that all of these activities were for the business purposes of selling Ford products to dealers located in Tacoma and Seattle and helping those dealers sell Ford products to retail customers," Chief Justice Gerry Alexander wrote for the majority.
Ford had argued for a narrower interpretation of its business in the cities, not including wholesale auto sales in the calculation. But the court held that the cities were properly classifying the scope of Ford's business.
"By their very terms, the cities' ordinances limit their taxing power to only those gross receipts derived from the sale of goods delivered into the cities," the majority said.
The court also rejected the argument that the taxes are an unconstitutional burden on interstate commerce.
**SCHNIPP**
Ruh Roe!! There will be more corks popping over this one Downtown...
Developing...
OLYMPIA, Wash. (AP) — Washington cities can impose a business tax on Ford Motor Co.'s wholesale sales to dealers, a divided state Supreme Court held Thursday.
Ford, a Delaware corporation with its main operations in Michigan, had challenged business and occupation taxes levied by Seattle and Tacoma on various wholesale-related business within their borders. The Seattle tax bill was about $400,000 and the Tacoma bill, for a longer time period, was more than $1.3 million. Ford paid, but appealed.
Ford has an office in the Seattle suburb of Bellevue, but has no plants in the state and doesn't directly sell vehicles in either Seattle or Tacoma. But Ford sells vehicles, parts and accessories to car dealers and promotes its products and sells warranties.
The high court, in a 5-4 decision, upheld the local business and occupation taxes on the company's wholesale sales to dealers.
"Ford has stipulated that all of these activities were for the business purposes of selling Ford products to dealers located in Tacoma and Seattle and helping those dealers sell Ford products to retail customers," Chief Justice Gerry Alexander wrote for the majority.
Ford had argued for a narrower interpretation of its business in the cities, not including wholesale auto sales in the calculation. But the court held that the cities were properly classifying the scope of Ford's business.
"By their very terms, the cities' ordinances limit their taxing power to only those gross receipts derived from the sale of goods delivered into the cities," the majority said.
The court also rejected the argument that the taxes are an unconstitutional burden on interstate commerce.
**SCHNIPP**
Ruh Roe!! There will be more corks popping over this one Downtown...
Developing...