MeadWestvaco Corp. v. Illinois Dept. of Revenue, 553 U.S. 16 (2008), is a United States Supreme Court case concerning the extent a state may tax companies that are not based in their state.MeadWestvaco Corp. v. Illinois Dept. of Revenue, .
Background Mead, a corporation based out of Ohio, owned Lexis-Nexis, which was based out of Illinois.MeadWestvaco Corp., 553 U.S. at 19-20. Mead sold Lexis, and Illinois maintained that Mead must pay them a proportionate capital-gains tax.MeadWestvaco Corp., 553 U.S. at 20. Illinois asserted that Mead and Lexis were integrated to the extent required for the "unitary business rule".MeadWesMeadWestvaco Corp. v. Illinois Department of Revenuetvaco Corp., 553 U.S. at 20, 23 (citing Ill. Comp. Stat., ch. 35, § 5/303(a) (West 1994)). This rule allowed states to tax a proportionate share of the value generated by an interstate corporation.MeadWestvaco Corp., 553 U.S. at 20-21.
Opinion of the Court In a unanimous opinion written by Associate Justice Samuel Alito, the Supreme Court held that the two businesses were not integrated enough to be considered a "unitary business" and Illinois was not allowed to tax Mead on the Lexis sale.MeadWestvaco Corp., 553 U.S. at 30-32.
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