E & E Hauling, Inc. v. Ryan

This case involves a tax protest action in which the plaintiff, E&E Hauling, Inc. (E&E), challenges the Illinois Secretary of State’s (Secretary) assessment of approximately $512,000 in franchise taxes, license fees, and penalties. Such taxes and fees are calculated on the basis of a corporation’s paid-in capital. Following a stock sale transaction between E&E’s former sole shareholder and its acquiring sole shareholder, Browning Ferris Industries of Illinois, Inc. (BFI Illinois), E&E’s paid-in capital was increased by nearly $58 million. This increase resulted from BFI Illinois’ decision,…