Burger Iron Co. v. Tracy

Pursuant to R.C. 5733.01(A), a tax is levied upon domestic and foreign corporations for the privilege of exercising their corporate franchises in Ohio. R.C. 5733.05 provides two bases for the calculation of the corporate franchise tax: the net worth basis and the net income basis. The tax due is the greater of the two amounts. R.C. 5733.06.

The issue before us relates to the calculation of tax under the net worth basis pursuant to the language of R.C. 5733.05(A) as it read during the tax years here at issue.1 During those tax years, corporations which were taxable under the net worth method…