Johnson & Johnson Wins Appeal in New Jersey Tax Refund Case (1)

Johnson & Johnson doesn’t owe New Jersey insurance premium tax on risks it insured outside the state, an appeals court ruled.

The Sept. 25 opinion reverses a June 2018 state tax court denial of a $55.9 million refund claim by the New Jersey-based pharmaceutical company.

The appellate division of the state Superior Court’s ruling backed Johnson & Johnson’s position that the state premium tax doesn’t apply to all U.S. risks under self-procured insurance from its Vermont-domiciled captive insurer—an entity that insures only the liabilities of its owner. The appeals court remanded the case for a determination on Johnson ...