Ashland Inc. v. Commissioner of Revenue

OPINION

HUDSON, Justice.

At issue in this appeal from the tax court is whether the consequences of an election made under federal tax law by a foreign entity owned by respondent Ash-land Inc., a domestic unitary business, must be recognized in determining Ash-land’s Minnesota tax liability. Concluding that the income and apportionment factors of the foreign entity were improperly included in Ashland’s combined return, relator Commissioner of Revenue excluded the foreign entity’s income and apportionment factors in calculating Ashland’s Minnesota tax liability. The tax court disagreed with the…