Rosemary Properties, Inc. v. McColgan

I dissent.

The allowance of the deduction in section 8(h) of the-Bank and Corporation Franchise Tax Act is designed solely to pre*689vent double taxation of corporate income by this state. This section was drafted to cover dividends generally; it was not aimed particularly at dividends declared out of earnings or profits not included in the measure of the tax because of the percentage depletion deduction. Dividends out of earnings or profits not included in the measure of the tax on the dividend-declaring corporation because of the percentage depletion deduction are on the same footing as any…