Associated Bank, N.a. and Affiliates v. Commissioner of Revenue, Relator.

Summary

The court held that the Commissioner of Revenue could use an alternative apportionment method because the statutory formula, although correctly applied, failed to reflect the Bank's Minnesota income from loan portfolios transferred to LLCs. The Commissioner bore the burden of rebutting the statutory presumption in favor of the prescribed formula with substantial, credible evidence, and met that burden by showing both distortion under the prescribed method and fairness under the alternative method. The court reversed the tax court and remanded for entry of a consistent judgment.