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MeadWestvaco Corp. v. Illinois Department of Revenue

Docket No.: 06-1413
Certiorari Granted: Sep 25 2007
Argued: January 16, 2008
Decided: April 15, 2008

PartyNames: MeadWestvaco Corporation, Successor in Interest to The Mead Corporation v. Illinois Department of Revenue, et al.
Petitioner: MeadWestvaco Corporation, Successor in Interest to The Mead Corporation
Respondent: Illinois Department of Revenue, et al.

Court Below: Appellate Court of Illinois, First District

MeadWestvaco Corporation, Successor in Interest to The Mead Corporation
v.
Illinois Department of Revenue, et al.
553 U.S. 16 (2008)
Question Presented:

Is the attempt by Illinois to tax the approximately §1 billion gain realized by Petitioner when it sold its investment in Lexis/Nexis in 1994 (which it acquired in 1968 for §6 million and which functioned for 26 years as an independent, nonunitary business) in direct conflict with the decisions of the Court in Allied-Signal, Inc. v. Director, Division of Taxation, 504 U.S. 768 (1992), FW. Woolworth Co. v. Taxation & Revenue Department of New Mexico, 458 U.S. 354 (1982) and ASARCO Inc. v. Idaho State Tax Commission, 458 U.S. 307 (1982) and the Due Process and Commerce Clauses of the United States Constitution?

Question:

Under the governing Supreme Court precedent, Allied-Signal, Inc. v. Director, Div. of Taxation, 504 U.S. 768 (1992), may a parent company use a division as a non-taxable investment when the division is involved in a substantially different business segment but the parent provides cash infusions, investment advice and oversight?

Note:

EXPEDITED BRIEFING SCHEDULE

Holding: judgment vacated and remanded
Vote: 9-0
Opinion By:
Read MEADWESTVACO CORP. V. ILLINOIS DEPARTMENT OF REVENUE opinion (PDF)

Other Resources for MeadWestvaco Corp. v. Illinois Department of Revenue:
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