OTHER NEWS - Nov. 24, 1992

Court Upholds State’s Method of Taxing Foreign Firms: A state appeals court in Sacramento has upheld California’s method of levying taxes on domestic- and foreign-based multinational companies that do business in the state, a ruling potentially affecting about $3.5 billion in revenue. The 3rd District Court of Appeal’s decision is the latest in a series of court rulings rejecting the corporations’ contention that they are taxed unfairly and that they are required to keep costly records solely for tax purposes. An earlier ruling, dealing with the major constitutional issue in the dispute, declared that California’s taxation method did not conflict with federal regulation of foreign trade.