Skechers Was Shoemaker for Tax Purposes, Massachusetts Argues

Skechers USA Inc. “improperly minimizes or ignores its involvement throughout the production process” of its shoes to avoid higher corporate excise taxes, the Massachusetts Commissioner of Revenue told a state court Friday.

The California-based company wants the Massachusetts Appeals Court to overturn a May ruling from the state tax appeals board that it is a “manufacturing corporation” that must calculate its tax liability using only the location of its sales, not using the standard three-factor formula that includes property and payroll information.

Using single-factor apportionment for businesses with little payroll or property within Massachusetts tends to increase their tax liability, ...