Philip Morris, Inc. v. Director of Revenue

BLACKMAR, Judge.

The taxpayer, Phillip Morris, Incorporated, is a Virginia corporation. At the times material to this appeal it owned all of the stock of Seven-Up Company, a Missouri corporation, which operates its own distinct business. The taxpayer also transacted its regular business in Missouri.

The federal constitution restricts the power of states to tax property outside of their borders. Interstate business must bear its fair share of taxation, however, and states may tax the income from interstate operations if they provide a fair ap*889portionment formula.1 Missouri gives taxpayers two…