Skechers Liable to Higher Massachusetts Tax Bill as Manufacturer

Skechers USA Inc. is liable for about $155,000 in corporate excise taxes because it’s a manufacturer that’s subject to a higher tax liability, a Massachusetts tribunal said Friday.

The appropriate way to determine how much taxes Skechers must pay is based solely on their sales, instead of accounting for sales, property and payroll, the Massachusetts Appellate Tax Board said. As a manufacturer, the shoe company is subject to the one-factor apportionment formula under state law, the opinion said.

Skechers argued it’s subject to the three-factor apportionment formula, which would result in a lower tax bill, since the company isn’t ...