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Massachusetts Appeals Court Rules Skechers Qualifies as Manufacturing Firm for Tax Purposes

The Massachusetts Court of Appeals upheld the Appellate Tax Board’s decision that shoe maker Skechers is a manufacturing corporation for corporate excise tax purposes.

In Boston, the state’s appellate court affirmed the tax board’s classification of Skechers as a manufacturer, rejecting the company’s claim that it primarily focuses on design and marketing. The judges noted that Skechers’ operations go well beyond mere concept creation. The ruling means the company must continue paying the corporate excise tax applied to manufacturers. The decision underscores the court’s willingness to look at the full scope of a business’s activities when determining tax status.

Why it matters

The ruling determines that Skechers must continue paying manufacturing excise taxes, affecting its tax burden and setting a precedent for similar disputes.

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Skecherscorporate excise taxmanufacturing classificationMassachusetts Court of AppealsAppellate Tax Boardtax rulingdesign and marketingbusiness operations