Amicus curiae letter in General Motors Corp. v. Franchise Tax Board: August 31, 2004.

On August 31, 2004, TEI sent the following letter to the Supreme Court of California as amicus curiae requesting the Court grant review of the California Court of Appeal's decision in General Motors Corp., et al. v. Franchise Tax Board. TEI addressed one issue in the case--the Franchise Tax Board's failure to adhere to the unitary business principle in administering California's research tax credit. The letter was prepared under the aegis of the Institute's State & Local Tax Committee, whose chair is Janet M. Wilson of Halliburton Company.

Tax Executives Institute respectfully requests that this Court grant review of the Court of Appeal's decision in General Motors Corp., et al. v. Franchise Tax Board, Case No. S127086. Review is necessary in order to settle an important question of law. Pursuant to California Rule of Court 28(g), Tax Executives Institute submits the following information in support of this request.

1. Interest of the Amicus Curiae

   Tax Executives Institute ("TEI" or "the Institute") is a voluntary, non-profit association of corporate and other business executives, managers, and administrators who are responsible for the tax affairs of their employers. The Institute was organized in 1944 and has approximately 5,400 members who represent more than 2,800 of the leading corporations in the United States, Canada, and Europe. The Institute is dedicated to promoting the uniform and equitable enforcement of the tax laws, reducing the costs and burdens of administration and compliance to the benefit of both the government and taxpayers, and vindicating the Commerce Clause and other constitutional rights of all business taxpayers. The members of the Institute represent a cross-section of the business community in North America and are engaged in interstate commerce.

   The multijurisdictional companies represented by the Institute's membership are significantly affected by the allocation and apportionment of income and expenses, along with the attendant issues related to computation of tax liability among the various states. As a result, TEI members will be directly affected by the ultimate outcome of this case. Specifically, the Franchise Tax Board's failure to adhere to the unitary business principle in administering California's research tax credit is a concern not only for the Institute's members within its five chapters located in California, but also for its members worldwide whose companies conduct research activities within the...