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Related Cases

Johnson & Porter Realty Co., Inc. v. Commissioner of Revenue Admin., 122 N.H. 696, 448 A.2d 435

Facts

The plaintiffs are business organizations subject to the Business Profits Tax, required to file 1981 business profit tax returns. None of the plaintiffs generated sufficient taxable business profits to incur a tax obligation in excess of $250, thus all paid the minimum tax of $250 imposed by RSA 77–A:2–a (Supp.1981). The minimum tax applied to businesses with gross income over $12,000 and profits under $2,753, leading to the legal challenge regarding its constitutionality.

The plaintiffs are business organizations subject to the Business Profits Tax, required to file 1981 business profit tax returns.

Issue

Is the minimum business tax imposed by RSA 77–A:2–a (Supp.1981) unconstitutional for being neither uniform nor proportional?

Rule

A tax must be imposed at a uniform rate and in proportion to the actual value of the property subject to tax, as required by the New Hampshire Constitution.

Analysis

The court found that the minimum tax was neither uniform nor proportional, as it imposed a greater burden on those less able to pay. The tax structure was deemed regressive and graduated, violating constitutional requirements. The court also noted that the State failed to demonstrate a valid distinction between the minimum tax and the regular business profits tax.

The court found that the minimum tax was neither uniform nor proportional, as it imposed a greater burden on those less able to pay.

Conclusion

The court concluded that RSA 77–A:2–a (Supp.1981) is unconstitutional and that the plaintiffs and similarly situated taxpayers are entitled to a refund of the taxes paid under this provision.

Who won?

The plaintiffs prevailed in the case because the court found the minimum business tax unconstitutional, entitling them to a refund.

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Keywords

Related Cases

Miles Laboratories, Inc. v. Department of Revenue, 274 Or. 395, 546 P.2d 1081

Quotron Systems, Inc. v. Limbach, 62 Ohio St.3d 447, 584 N.E.2d 658

Tarutis v. Commissioner of Revenue, 393 N.W.2d 667

Kadrmas v. Dickinson Public Schools, 487 U.S. 450, 108 S.Ct. 2481, 101 L.Ed.2d 399, 56 USLW 4777, 47 Ed. Law Rep. 383

Comfortably Yours, Inc. v. Director, Div. of Taxation, 272 N.J.Super. 540, 640 A.2d 862