BALTIMORE (AP) - Maryland tax authorities and high-end retailer Nordstrom
Inc. are headed to state tax court Wednesday over a corporate income tax
dispute.
Maryland authorities say Nordstrom owes just over $1 million for corporate
income taxes the retailer put into holding companies registered in Delaware.
Maryland's neighboring state charges no corporate income tax, and Maryland tax
authorities routinely challenge companies they believe are hiding revenues in
that state.
Last month, a Maryland tax judge awarded the state $1.1 million in corporate
income taxes from a subsidiary of another apparel retailer, The Talbots Inc.
Maryland has assessed Nordstrom a total of $2.1 million for corporate income
taxes the state believes was shifted to two Delaware holding companies. The
total includes more than $1 million in taxes and a similar amount in interest
and penalties.
In a statement, a Nordstrom spokesman said the Seattle-based retailer is
contesting the charge. Spokesman Michael Boyd says Nordstrom pays millions in
taxes to Maryland every year and does not believe it has evaded any payments.
The sides meet in Maryland Tax Court on Wednesday.
Nordstrom has five locations in Maryland and 158 total stores in 28 states.
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