Ex Parte Alabama Department of Revenue. (In Re Kimberly-Clark Corporation and Kimberly-Clark Worldwide, Inc. v…

Summary

The Alabama Supreme Court reversed the Court of Civil Appeals and remanded the case, holding that the gain from the sale of the Coosa mill and timberland is not "business income" under Ala.Code 1975 Art. IV, l.(a) and therefore is non‑business income allocable solely to Alabama. The Court applied the transactional test from Ex parte Uniroyal and affirmed the Department’s assessments. Chief Justice Cobb dissented, arguing the sale should be treated as business income.