State v. Robinson Land & Lumber Co. of Alabama, Inc.

CLAYTON, Justice.

This appeal by the state from an adverse ruling on demurrer concerns a certain formula used by the State Department of Revenue for computing corporation income taxes due the state under certain conditions. The question ft,r our determination is whether this formula is in accordance with or runs counter to Section 390 of Title 51, Code of Alabama, 1940, which reads as follows:

“§ 390. Credit for taxes paid on income from sources without the state. —(a) For the purpose of ascertaining the income tax due under the provisions of this chapter, by residents of Alabama whose gross…