Skechers Asks Massachusetts Court to Toss Corporate Tax Bill

Skechers USA Inc. designs but doesn’t manufacture its shoes, making it eligible for more favorable corporate excise tax treatment, the footwear brand told the Massachusetts Appeals Court.

The California-based company wants the court to overturn a May ruling from the state tax appeals board that it is a “manufacturing corporation” that must calculate its Massachusetts tax liability using only the location of its sales, not property and payroll information.

Using single-factor apportionment for businesses with little payroll or property within Massachusetts tends to increase their tax liability, as it did here. The revenue commissioner’s audit using only sales data resulted ...