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BENDIX CORP. v. DIRECTOR, DIV. OF TAXATION

125 N.J. 20 (1991)

592 A.2d 536

BENDIX CORPORATION, PLAINTIFF-APPELLANT, v. DIRECTOR, DIVISION OF TAXATION, DEFENDANT-RESPONDENT.

The Supreme Court of New Jersey.

Decided July 16, 1991.

Attorney(s) appearing for the Case

Mark S. Rattner argued the cause for appellant (Riker, Danzig, Scherer & Hyland, attorneys, Mark S. Rattner and Paul H. Brownstein, on the briefs).

Mary R. Hamill, Deputy Attorney General, argued the cause for respondent (Robert J. Del Tufo, Attorney General of New Jersey, attorney, Michael R. Clancy, Assistant Attorney General, of counsel).

Charles M. Costenbader submitted a brief on behalf of amicus curiae Committee on State Taxation of the Council of State Chambers of Commerce (Stryker, Tams & Dill, attorneys, Paul H. Frankel, on the brief).

The opinion of the court was delivered by MUIR, Jr., J.A.D., Temporarily Assigned.

On this appeal, plaintiff, Bendix Corporation, a multi-jurisdictional, non-domiciliary corporation doing business in New Jersey, argues New Jersey transgressed the due process and commerce clause limitations of the United States Constitution when the State taxed capital gains Bendix earned from the sale of all its stock in two corporate affiliates. In 1981, Bendix sold its 20.6% stock...

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