Hub City Foods, Inc. v. Department of Revenue

Hub City Foods, Incorporated, appellant (hereafter Hub City) appeals the order of the Wood County Court determining inheritance tax, entered May 27, 1976, and the order of the Wood County Court denying Hub City’s request for a six percent interest rate, entered October 14,1976.

The principal question raised is:

When a shareholder of a closely held corporation enters into an agreement with the corporation providing for the mandatory redemption of his shares at a fixed price, does the price stipulated in the agreement establish the value of the stock for state inheritance tax purposes?

We hold…