Administrative Hearing Commission
Richard Maseles, Esquire
Registered nurse not entitled to Missouri license because she moved to Arizona, and under Nurse Licensure Compact, could only be licensed in her home state. Decker v. State Board of Nursing, No. 11-0969 BN (Mo. A.H.C., November 13, 2012), Winn, C.
Decker’s registered nurse license had previously been revoked by the Board, but then applied for a license by examination. After the hearing, Decker moved from Missouri to Arizona, and the Board asserted that her change of home state disqualified her for a Missouri license under the Nurse Licensure Compact.
DECISION: Decker was not entitled to a Missouri license. Under the Nurse Licensure Compact, §§ 335.300-335.350, RSMo, a nurse in a party state could hold licensure only in her home state, defined as her primary state of residence. Since she not only moved to Arizona but declared it to be her home state, and since Arizona was also a party state to the Compact, she could not be granted a Missouri license.
Dividends paid by members of consolidated group of corporations to other members not included as “sales” under three-factor apportionment method of Interstate Tax Compact. Embarq Corp. v. Director of Revenue, No. 10-1485 RI (Mo. A.H.C., October 17, 2012), Dandamudi, C.
Certain members of Embarq, a consolidated group of corporations for tax purposes, paid dividends to Embarq and other members during 2006 on stock held by those corporations. Embarq claimed the dividends should be included as “sales” for purposes of calculating Missouri taxable income under the three-factor method of apportionment of the Multistate Tax Compact. The Director disagreed and adjusted Embarq’s 2006 tax due, based on a finding that the dividends could not be factored in as “sales” under the Compact. Embarq appealed.
DECISION: The Director’s decision was upheld. Dividends were not intercompany transactions as defined under 26 CFR § 1.1502-13, and therefore were not to be included under the sales factor denominator pursuant to 12 CSR 10-2.045(19). However, Embarq’s participation in the management and operation of its affiliated companies was an income-producing activity that qualifies the dividends as business income, because Embarq participated in the management and operations of the corporations paying dividends. Nonetheless, including the dividends in the sales factor would prevent the fair operation of the apportionment formula, because Embarq failed to establish which dividends arose from Missouri operations.