In Elan Pharmaceuticals, Inc. v. Director of Taxation, the New Jersey Tax Court held that certain receipts were not subject to exclusion under New Jersey's former throw-out rule. Specifically, the New Jersey Division of Taxation incorrectly removed from the sales factor denominator all of the receipts from states in which the taxpayer did not file an income tax return. Elan is the latest in a series of New Jersey cases in which New Jersey courts prohibited the Division from applying New Jersey's former throw-out rule in an unconstitutional manner.
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