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Massachusetts Asks High Court to Reconsider Capital Gains Ruling

June 14, 2022, 2:22 PM

Massachusetts wants another chance to prove it has the statutory authority to tax capital gains realized by out-of-state companies when they sell in-state companies.

The state revenue commissioner asked the Massachusetts Supreme Judicial Court late Monday to reconsider its May ruling, which found that the state’s taxing statutes bar it from deviating from the unitary business principle to tax the Florida company VAS Holdings & Investments LLC for the financial benefit it gained from selling its 50% ownership interest in in-state company Cloud5 LLC.

The court sided with the state on the constitutionality of the tax, finding Cloud5’s success ...