ARONOV v. SECRETARY OF REVENUE

No. 336PA87.

371 S.E.2d 468 (1988)

323 N.C. 132

Aaron ARONOV v. SECRETARY OF REVENUE, Department of Revenue, State of North Carolina.

Supreme Court of North Carolina.

September 7, 1988.


Attorney(s) appearing for the Case

Law Offices of Kenneth G. Anderson by Kenneth G. Anderson and James P. Stevens, Jacksonville, Fla., and Hunter, Wharton & Howell by John V. Hunter, III, Raleigh, for plaintiff-appellee.

Lacy H. Thornburg, Atty. Gen. by Newton G. Pritchett, Jr., Asst. Atty. Gen., Raleigh, for appellants Secretary of Revenue, Dept. of Revenue, and State of N.C.


MEYER, Justice.

This case presents an issue of first impression. We decide whether the Secretary of Revenue's requirement that a nonresident taxpayer reduce his distributive share of his North Carolina partnership's net operating loss each year by his non-North Carolina income has the effect of imposing a tax on that income in violation of constitutional and legislative authority. The Court of Appeals resolved the issue in favor of the taxpayer. We reverse.

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