Morrison & Foerster's State and Local Tax Group Wins Influential Sales Factor Case at the California Court of Appeal


On April 15, 2009, the California Court of Appeal, First Appellate District, decided General Mills v. Franchise Tax Board. The court agreed with General Mills in holding that the “[t]he full sales price of General Mills? hedging futures sales contracts are "gross receipts? to be included in the calculation of the UDITPA sales factor.” The Court of Appeal, therefore, reversed the trial court?s conclusion to the contrary, and remanded the case to the trial court for a ruling on “whether the Franchise Tax Board met its burden of proving that the apportionment formula does not "fairly represent? General Mills? business activity within California, thus warranting imposition of an alternative formula pursuant to section 25137.”

Please see full update for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: 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 | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.