Enterprise Challenges New Jersey Tax on Israeli Firm Equity Sale

Enterprise Holdings Inc. is challenging New Jersey’s assessment of corporation business tax, arguing that the company’s gain from the sale of its passive minority interest in an Israeli software company wasn’t operational income that’s taxable under state law.

Enterprise’s investment in Mobileye NV—which supplies autonomous vehicle safety technology—didn’t serve an operational function and the two weren’t engaged in a unitary business at any point, the car rental company told the New Jersey Tax Court.

In addition to violating New Jersey law, Enterprise argued the assessment violates the commerce and due process clauses of the US Constitution because nondomiciliary states only ...