The New York State Tax Appeals Tribunal reversed the determination of an Administrative Law Judge and held that the issued capital stock of frog design, inc., a California corporation, had a par value of $1 per share. The Administrative Law Judge previously upheld the Division of Taxation's computation of the company's license fee at the rate applicable to no par value stock (i.e., 5 cents per share), finding that a California provision setting the par value at $1 per share for all California corporations did not control for purposes of computing the company's license fee. The Tribunal disagreed and directed the Division of Taxation to recompute the company's license fee at the rate applicable for stock with a par value of $1 per share (i.e., 0.05% of the par value of each issued share).
The Tribunal's decision is not appealable by the State and, therefore, is final.
Read a copy of the Tribunal's April 15, 2015 decision.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Morrison & Foerster LLP. All rights reserved