PHILIP MORRIS, INC. v. DIRECTOR OF REV.

No. 70276.

760 S.W.2d 888 (1988)

PHILIP MORRIS, INC., Appellant/Cross-Respondent, v. DIRECTOR OF REVENUE, Respondent/Cross-Appellant.

Supreme Court of Missouri, En Banc.

As Modified on Denial of Rehearing December 13, 1988.


Attorney(s) appearing for the Case

Stanley P. Weiner, Robert K. Kirkland, Kansas City, James W. Shea, New York City, for appellant/cross-respondent.

William L. Webster, Atty. Gen., Richard Wieler, Asst. Atty. Gen., Jefferson City, for respondent/cross-appellant.


BLACKMAR, Judge.

The taxpayer, Phillip Morris, Incorporated, is a Virginia corporation. At the times material to this appeal it owned all of the stock of Seven-Up Company, a Missouri corporation, which operates its own distinct business. The taxpayer also transacted its regular business in Missouri.

The federal constitution restricts the power of states to tax property outside of their borders. Interstate business must bear its fair share of taxation, however...

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