Lorillard Denied Business Tax Refund by New Jersey Appeals Court

Newport cigarette maker Lorillard Tobacco Co. failed to convince a New Jersey appeals court Tuesday to revive its claim for about $5 million in corporation business tax refunds.

The North Carolina-based company challenged the New Jersey Tax Court’s ruling that a 2020 amendment to the state’s addback regulation applied retroactively to Lorillard’s refund claims for tax years 1999-2004. The regulation interpreted the addback statute, which requires taxpayers to include in their taxable income otherwise deductible royalties paid to a related party unless they can establish the adjustments are “unreasonable.”

The case is back at the appeals court for a second ...