Tonernews.com, October 17, 2019. USA
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Maryland’s $14M Tax Levy On Staples Corporation is Unconstitutional, Justices Told.Staples Inc has asked the US Supreme Court to review its long-standing legal battle with Maryland over the state’s claim that the reseller owes it $14 million in back taxes.By Andy Braithwaite
Framingham (MA), USA, Staples Inc has asked the US Supreme Court to review its long-standing legal battle with Maryland over the state’s claim that the reseller owes it $14 million in back taxes.On 8 October, Staples’ legal counsel filed its final plea to the Supreme Court asking for a judicial review in a dispute that has been ongoing since Maryland first issued notices for back taxes in 2008. At the heart of the matter is Maryland’s assertion that Staples owed the state income tax on royalty payments and other fees paid by the reseller’s Maryland operations to its out-of-state entities between 1999 and 2004.After the Maryland Comptroller issued final notices in January 2009 affirming Staples owed the state $14.3 million (of which around $6 million was for interest), Staples appealed. This appeal was rejected by the Maryland Tax Court in June 2015 and, following several further rejected challenges, Staples finally took its case to the Supreme Court, calling Maryland’s claims “unconstitutional”.Staples’ counsel is also linking its case to a 2019 complaint filed by Arizona’s Attorney General against California over out-of-state tax collection, a case that is also in the hands of the Supreme Court.In the 8 October plea document, Staples wrote: “Whether states may stretch their taxing authority beyond their borders in this fashion is a question of critical importance to businesses nationwide, one implicating fundamental principles of our federal system. Absent this court’s intervention, states will push even further past the constitutional limits on their powers, and taxpayers will suffer the uncertainty and duplicative taxation that results.”Failing an immediate judicial review, Staples is requesting the Supreme Court holds its petition “at the very least” pending a determination in the Arizona vs California case.
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