Borden, Inc. v. Limbach

The transaction at issue in this case involved appellant Borden’s sale of depreciable property owned by one of its Florida divisions. All this property was located in Florida and had no situs in Ohio at the time of sale. Because we hold that the meaning of “capital gain” discerned from the Internal Revenue Code cannot be used to allocate income for Ohio’s franchise tax, we reverse the Board of Tax Appeals. We conclude that the General Assembly specifically excluded gains such as these from the reach of the Ohio franchise tax.

R.C. 5733.051 governs the potential allocation of taxable net…