Office supply retailer Staples owes Maryland $14.4 million in back taxes, the state tax court ruled.
The company and comptroller disagreed over how much income from Staples' Maryland stores could be linked to the state for tax purposes from 1998 through 2004.
The court said Staples reorganized its corporate structure "to minimize or eliminate its state tax liabilities" in 1998. The company said the comptroller's assessments "grossly distort[ed] the income … attributable to Maryland."
In a May 28 ruling, the Maryland Tax Court sided with the comptroller, but said Staples "had a reasonable basis for challenging the law and acted in good faith." Because of that, the court waived penalties and interest.
twitter.com/ssdance