Corrigan v. Testa (Slip Opinion)

{¶ 1} A 2002 amendment to R.C. 5747.212 broadly imposed Ohio’s income tax on a capital gain realized by an out-of-state investor in a pass-through entity if that investor held a 20 percent or greater interest in the entity during a three-year period including the taxable year. The new statute apportioned the capital gain to Ohio based on the percentage of the entity’s business conducted in this state during the three-year period. In this appeal, appellant, Patton R. Corrigan, a nonresident taxpayer, contests R.C. 5747.212’s imposition of income tax on a portion of the capital gain that he…