Tax Type
Corporation Income Tax
Description
Apportionment formula for airlines
Topic
Allocation and Apportionment
Date Issued
03-19-1991
March 19, 1991
Dear****************
This will reply to your letter of December 3, 1990, in which you requested that the department rescind its assessments of corporation income tax against***********("the taxpayer") for taxable years 1983 and 1984. Your request is based on §9125 of the Revenue Reconciliation Act of 1990 ("The Act"), which prohibits the use of overflight miles in a tax apportionment formula applicable to airlines. After reviewing the information provided, I find no reason to change the department's position.
The Act does not contain any provision making §9125 retroactive or invalidating any tax already assessed or collected. Therefore §9125, effective November 5, 1990, has no effect on the assessments of corporate income tax that were the subject of my letter dated September 21, 1990, P.D. 90-171 (9/21/90). The fact that the assessments were not paid as of the date of enactment is irrelevant. Cf. State Bd. of Equal. v. American Airlines, 773 P.2d 1033, 1040-41 (Colo. en b anc), cert. denied, __ U.S. _ 110 S.Ct. 151 (1989) (federal amendment did not apply retroactively to completed assessments). The department has not yet determined what, if any, impact § 9125 may have on taxable years beginning on and after the effective date.
Accordingly, the assessments are due and payable.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner