Penn Entertainment, Inc. (f/k/a Penn National Gaming, Inc.) v. Department of State Revenue

Summary

The Indiana Supreme Court held that Indiana's corporate-tax add-back statute requires taxpayers to add back direct income taxes and excise taxes that are their functional equivalents, including apportioned excise taxes. It does not require adding back unapportioned wagering excise taxes because those taxes are ordinary business expenses and were never apportioned, so adding them back would artificially inflate Indiana's tax base. The court reversed the Tax Court and remanded for entry of summary judgment in Penn's favor.