State Tax Assessor v. Fifth Generation, Inc.

Summary

The court affirmed summary judgment reinstating an assessment against Fifth Generation for Maine withholding tax, interest, and penalties. It held that Fifth Generation had a Maine income-tax nexus because it retained title to spirits stored in a Maine bailment warehouse and sold them to the State within Maine, and that the federal interstate-commerce exemption did not apply because the company’s in-state activities went beyond solicitation of orders. The court also rejected Fifth Generation’s Commerce Clause challenge and upheld the refusal to waive or abate penalties.