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SEVENTEEN THIRTY CORP. v. DIR., NJ DIV. OF TAX.

18 N.J. Tax 168 (1999)

SEVENTEEN THIRTY CORP., PLAINTIFF, v. DIRECTOR, NEW JERSEY DIVISION OF TAXATION, DEFENDANT.

Tax Court of New Jersey

April 16, 1999

Attorney(s) appearing for the Case

Kenneth R. Cohen, Carchman, Sochor, Schwartz & Ragsdale, for plaintiff.

Carol Johnston, Peter Verniero, Attorney General of New Jersey, for defendant.

KUSKIN, J.T.C.

Plaintiff is a New Jersey corporation which operates a retail store in Avenel, New Jersey. The store sells adult-oriented books, periodicals, novelties, and videotapes and includes a segregated area which contains twenty-seven booths used to view adult videotapes. Defendant determined that certain payments by plaintiff to its store manager, who is also the president and sole shareholder of plaintiff, for the fiscal years ending October 31,

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