‘Polychim’ Puts Louisiana Corporate Franchise Tax Against the Ropes

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

The Louisiana First Circuit Court of Appeal recently rejected in Bridges v. Polychim USA Inc. a state Department of Revenue attempt to impose franchise tax on an out-of-state corporation based on interests it holds in a pass-through entity conducting business there. In this article, Kathryn S. Friel of Jones Walker LLP discusses the ruling, its similarities to UTELECOM Inc. v. Bridges and its implications for the future.