Bed Bath & Beyond Denied Refund of California Franchise Taxes

Bed Bath & Beyond Inc. has failed to convince the California Office of Tax Appeals that it is entitled to a refund of over $1 million in taxes paid over three years.

Two members of a three-judge panel rejected the company’s argument that receipts from its treasury function may be included in the sales factor of its apportionment formula. All three judges agreed with the company that its vendor allowances may be included in the sales factor, but found the company didn’t provide enough evidence to entitle it to a refund for those amounts.

The state Franchise Tax Board ...