Corrigan v. Testa
Annotate this CaseAppellant, a nonresident taxpayer, filed a refund claim for an unpaid 2004 tax liability assessment. Appellant contested Ohio Rev. Code 5747.212’s imposition of income tax on a portion of the capital gain that he realized in 2004 when he sold his ownership interest in a limited liability company. The tax commissioner denied the refund claim. The Board of Tax Appeals (BTA) affirmed. Appellant appealed, arguing that applying section 5747.212 to him was unconstitutional and that he should be permitted to allocate the gain entirely outside Ohio. At issue before the Supreme Court was whether Ohio may levy income tax on Appellant’s capital gain as if it were income from the business itself. The Supreme Court reversed the decision of the BTA, holding that section 5747.212, as applied to Appellant, violates the Due Process Clause of the Fourteenth Amendment. Remanded to the tax commissioner to grant Appellant a refund.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.