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Pennsylvania Commonwealth Court Upholds its Apportionment Policy Decision in FedEx Ground Package System, Inc. v. Commonwealth

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Home Perspectives Pennsylvania Commonwealth Court Upholds its Apportionment Policy Decision in FedEx Ground Package System, Inc. v. Commonwealth

In a 2006 decision, the Pennsylvania Commonwealth Court agreed with Reed Smith's arguments, and rejected the Department of Revenue’s policy—reaffirming the principle that the numerator of an apportionment factor must reflect only in-state activity.  The Department appealed this decision by filing exceptions to an en banc panel of the court.  In an opinion issued Friday, the court, in a 4-to-3 decision, again agreed with Reed Smith's arguments.  FedEx Ground Package System, Inc. v. Commonwealth of Pennsylvania, decided April 17, 2006, exceptions denied April 27, 2007.

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