On February 24, 2020, TEI filed an amicus brief seeking review with the U.S. Supreme Court in Paz v. New Jersey Director of Taxation.
The case involves New Jersey’s attempt to tax all of the gain arising from John Paz’s sale of S-corporation stock on the grounds that it constituted nonoperational income that should be sourced to the S-corporation’s commercial domicile. TEI’s brief argued that the determination of whether income was apportionable or allocable must be made using constitutional tests established by the U.S. Supreme Court rather than a state statute defining nonoperational income.
TEI's brief was prepared under the aegis of TEI's State and Local Tax Committee, whose chair is Michell Rodriguez. TEI Tax Counsel Pilar Mata coordinated the preparation of the brief and was its principal author.