Also known as: taxable situses · situs
Written by attorneys · grounded in primary & secondary sources — see below
A location where property maintains sufficient contacts with a taxing state to permit that state to impose an ad valorem tax on the property. The contacts must satisfy due process requirements before the state may tax the property at all. When the property moves among states, the taxable situs also determines whether apportionment of value is required.
Tundra Resources holds a recorded mortgage on timberland located entirely in State B. State A attempts to tax the mortgage interest as intangible property owned by the lender. The court applies the law that courts of State B would apply to decide whether the mortgage creates an interest in land that acquires taxable situs in State A.
Terra Financial owns heavy equipment used across State A, State B, and State C. State B asserts a tax on the full value of the equipment. The court weighs the policies of each state, the parties' expectations, and the location of the equipment to identify which state has the most significant relationship and therefore the taxable situs.
Select any source to read its text and confirm it supports the definition.
Talon Security owns a fleet of railcars that travel through multiple states. State A claims the cars have taxable situs there because they spend substantial time on tracks within its borders. The court examines whether the cars' regular presence creates the contacts necessary for State A to tax a portion of their value.
Trailblazer Airlines maintains a maintenance hangar and parts inventory at an airport in State B. State B imposes an ad valorem tax on the inventory. The court determines whether the hangar's continuous use and the inventory's regular presence supply the contacts required for taxable situs in State B.
Tanner Thompson obtains a large judgment against a debtor whose oil leases are located in State B. State A attempts to tax the judgment as an intangible asset. The court looks to whether the underlying leases in State B create contacts sufficient to fix the taxable situs of the lien in State B.
Tessa Takahashi holds assets in New York that originated under a foreign nationalization decree. State A claims the assets have taxable situs there because of the owner's current residence. The court decides whether the assets' physical location and the decree's effect establish the contacts needed for taxation in State A.
The property must have sufficient contacts with the taxing state to justify the tax under the Due Process Clause. For instrumentalities that move among states, the state must show regular presence or other meaningful connections that allow taxation of at least a portion of the property's value.
Supporting sources
No. When property moves among states during the tax year, the state may tax only the portion fairly apportioned to its contacts. Apportionment prevents one state from taxing value attributable to other states.
Supporting sources
Physical location alone does not create taxable situs for goods traveling in interstate commerce. The goods must either be in the course of interstate commerce (and thus exempt) or have acquired sufficient contacts with the state outside that commerce to permit taxation.
Supporting sources
Apportionment is required only when the instrumentality moves among states and its physical situs changes during the year. Fixed property with a single taxable situs may be taxed at full value without apportionment.
Supporting sources
…or to share it with a foreign State" (p. 310); that, although the Russian decree effected the death of the parent company, the situs of the property of the New York branch was in New York; and that no principle of law forces New York to forsake the method of distribution authorized in the earlier appeal (255 N.Y. 415,…