W. POINT PEPPERELL v. Dept. of Revenue

This is a statutory construction case. The issue is whether certain West Point Pepperell (Pepperell) reserve accounts, including deferred federal income tax, deferred employee compensation, and other long-term reserve accounts (hereinafter collectively referred to as reserve accounts), were properly determined by the Alabama Department of Revenue (state) to be within the definition of capital employed in the state and therefore subject to the state franchise tax on foreign corporations.

The levy on foreign corporations is codified under section40-14-41, Ala. Code 1975. Pepperell does business…