Alcan Aluminum Corp. v. Limbach

Under the franchise tax, the net income of a corporation is allocated or apportioned to Ohio under R.C. 5733.05 and 5733.051. During the audit year, R.C. 5733.051(A)(5) and (6) (now R.C. 5733.051[E] and [F]) provided that capital gains realized from the sale of shares of stock were to be allocated in the same manner as dividends. These code provisions stated:

"Net income of a corporation subject to the tax imposed by this chapter shall be allocated and apportioned to this state as follows:

‘ ‘(5) Capital gains and losses from the sale or other disposition of intangible personal property which…