Shangri-La, Inc. v. State

This appeal questions the tax commission’s determination that for the purpose of the Business Profits Tax (RSA ch. 77-A) the taxpayer’s gain on the sale of its business property should be computed on the basis of its federal income tax return (cost less accumulated depreciation) rather than the fair market value on the effective date of the tax statute (January 1, 1970). The taxpayer, ShangriLa, contends not only that the legislature did not intend to tax appreciation in value occurring before the effective date of the tax, but also that a legislative intent to tax preenactment appreciation…