Inequitable Apportionment: A Bad Precedent in Tennessee



Peter Faber wrote this bylined article criticizing the Tennessee Supreme Court’s Vodafone decision as focused more on maximizing tax revenue than on deciding legal issues. Mr. Faber wrote that the case raised “serious separation-of-powers questions” about when a tax agency can depart from a statutory apportionment formula and what courts can do in reviewing such action. He concluded that if the legislature has prescribed an apportionment method, the tax agency’s discretion to depart from it “should be exercised cautiously and only in unusual circumstances.”