The Iowa Supreme Court handed down its decision in KFC Corporation vs. Iowa Department of Revenue today, upholding the state's ability to tax out-of-state franchisors that do not have a physical presence in the state. The court held that the State of Iowa has the authority to impose its corporate income tax on franchisors based solely on the use of their intangibles by franchisees located in the state. This decision, although not unexpected, will lead to increased enforcement efforts in Iowa, and perhaps other states
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