Blitz U.S.A., Inc. v. Oklahoma Tax Commission

OPALA, v.C.J.

4 1 The sole issue tendered on certiorari is whether the state income tax exemption for royalty earned by an inventor extends to a company's net income from the sale of products it also invents and manufactures, We answer in the negative.

ANATOMY OF LITIGATION

1 2 Blitz U.S.A., Inc. (taxpayer or the company) is a closely-held corporation located in Miami, Oklahoma. It has elected for federal and state income tax purposes Subchapter S tax status under the United States Internal Revenue Code. 2 As a Subchapter S corporation, taxpayer's corporate earnings are reportable and taxable as…