NJ Tax Court Sides With Web Services Company on Apportionment

Government contracting firm Solix Inc. is entitled to a New Jersey corporate business tax refund of nearly $400,000, the state tax court ruled Friday.

Solix appropriately used market-based sourcing—assigning receipts from sales of its services to the state where its customers are located—to calculate what proportion of its business is attributable to the state, the New Jersey Tax Court held in an unpublished opinion.

“The economic reality for the tax years at issue was that nearly all of Solix’s clients were located outside New Jersey; a majority of Solix’s employees performed their duties outside New Jersey; and Solix earned ...