7-28-11 Whirlpool Properties, Inc., v. Director, Div. of Taxation (A-25-10) (066595)
For corporate taxpayers having a substantial nexus to New Jersey, the Throw-Out rule may apply constitutionally only to untaxed receipts from states that lack jurisdiction to tax the corporation due to insufficient connection with the corporation or due to congressional action such as 15 U.S.C.A. §§ 381- 84(commonly referred to as “P.L. 86-272”), but not to receipts that are untaxed because to impose an income tax.