Docket nos. 06-1413 End date 2008 | Concurrence Thomas | |
Full case name MeadWestvaco Corp., Successor in Interest to Mead Corp. v. Illinois Department of Revenue, et al. Citations 553 U.S. 16 (more)
128 S.Ct. 1498, 170 L.Ed.2d 404 Prior history Certiorari to the Appellate Court of Illinois, First District Majority Alito, joined by unanimous court | ||
MeadWestvaco Corp. v. Illinois Dept. of Revenue, 553 U.S. 16 (2008), is a United States Supreme Court case concerning the extent a state may tax companies that are not based in their state.
Contents
Background
Mead, a corporation based out of Ohio, owned Lexis-Nexis, which was based out of Illinois. Mead sold Lexis, and Illinois maintained that Mead must pay them a proportionate capital-gains tax. Illinois asserted that Mead and Lexis were integrated to the extent required for the "unitary business rule". This rule allowed states to tax a proportionate share of the value generated by an interstate corporation.
Opinion of the Court
In a unanimous opinion written by Associate Justice Samuel Alito, the Supreme Court held that the two businesses were not integrated enough to be considered a "unitary business" and Illinois was not allowed to tax Mead on the Lexis sale.