Welcome

Smithfield Foods Owes California Tax Based on Sales in the State

March 5, 2021, 2:06 AM

Smithfield Foods Inc. must pay California income tax using a standard formula that apportions income based solely on sales in California compared with sales elsewhere, the state’s Franchise Tax Board ruled Thursday.

After a 90-minute oral hearing, the three-member board rejected the pork producer’s request to deviate from the standard income apportionment formula because the vast majority of its operations are outside California. The company asked the board to calculate its income tax based on equally weighted factors of property, payroll, and sales in California compared with those factors elsewhere for 2014 through...

To read the full article log in. To learn more about a subscription click here.