1 1. In Cuno v. Daimlerchrysler, Inc., 386 F.3d 738, rev'd in part on other grounds, 547 US 332 (2006), the Court of Appeals held the following: (Please note that there may be one or more answers could be correct, please select what you believe to be the one best correct answer) 1. The Court allowed the personal property tax exemption because it did not discriminate, because it dealt with property placed in a specific location. 2. The Court disallowed the investment tax credit because it violated the discrimination aspect of the Commerce Clause. 3. The Court allowed the property tax exemption because it noted the State statute allowed the exemption and Due Process was not violated. 4. The Court disallowed both the property tax abatement and the investment tax credit. 5. The Court agreed with the Taxpayer, the State of Ohio, that all the tax incentives did not violate the Commerce Clause. 6. The Court disallowed the investment tax credit because it violated Due Process. 7. The Court bifurcated its holding, allowing the investment tax credits, stating the credits did not violate the Commerce Clause. Question 2 1. States cannot tax business in their State in any manner they see fit. True False Question 3 1. States are required to follow UDITPA and the conclusions from the Multistate tax Commission. True False Question 4 1. A State can tax the multistate business and non-business income of a corporation as long as the income is apportioned. True False Question 5 1. In Quill Corporation v. North Dakota, 504 US 298 (1992), the Supreme Court decided in Quill's favor on the following grounds: 1. North Dakota violated Due Process and Commerce Clause in its requirement for Quill to collect sales tax. 2. North Dakota violated Due Process in requiring Quill to collect sales tax. 3. North Dakota did not violate either Due Process or Commerce Clause and Quill is required to collect sales tax. 4. North Dakota violated the Commerce Clause because North Dakota did not meet the established factors in order to require Quill to collect sales tax Question 6 1. A State can tax property of an international ship line for foreign flagged ships in its harbor. True False Question 7 1. UDITPA requires all States to use the following formulas in apportionment of business taxable income: 1. Only sales 2. Property, sales and payroll 3. Property and sales 4. Any combination as long as it is equitable in relationship to apportionment. Question 8 1. The Dormant Commerce Clause was created by Congress. True False Question 9 1. In Amazon.COm, LLC v. New York Department of Taxation and Finance, 23 Misc.3d 418 (2009), Amazon was required to collect sales tax because: 1. Amazon was not required to collect sales tax because it did not meet the physical presence requirement. 2. Because Amazon had a physical presence in the State because it had a warehouse in the State 3. A State Statute stated so. 4. Because Amazon had a substantial nexus through its agent relationship. Question 10 1. States have the right to tax resident on his or her worldwide income. True False