OKLAHOMA CITY —
The Oklahoma Supreme Court has reinstated a state Tax Commission ruling that rejected an out-of-state company's attempt to claim a tax break on capital gains for Oklahoma-based businesses.
In a 5-4 decision, the state's highest court on Tuesday ruled against CDR Systems Corporation. Headquartered in Florida, CDR claimed the Oklahoma capital gains deduction on its 2008 income tax return for any gains realized from a stock purchase agreement for the sale of all of its assets.
The Tax Commission denied the claim because CDR was not headquartered in Oklahoma for three years prior to the sale. But the Oklahoma Court of Civil Appeals reversed the commission, ruling that the deduction discriminated against interstate commerce.
The Supreme Court reversed the Court of Civil Appeals and ruled the deduction is not discriminatory.