• Green Light, Red Light or Blue Light? New Mexico Supreme Court Sends Mixed Signals with Kmart Decision
  • January 11, 2006
  • Law Firm: Sutherland Asbill & Brennan LLP - Washington Office
  • On the eve of the New Year, the New Mexico Supreme Court handed down its long-awaited decision in the Kmart case involving the state's power to subject an out-of-state intangible holding company to gross receipts and income tax on royalties from licensing trademarks and trade names to a related in-state licensee. Kmart Corp. v. Taxation and Revenue Department, No. 27,269, N.M. Sup. Ct., Dec. 29, 2005. From a taxpayer's perspective, there is good news and bad news in the decision.