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ATTORNEYS FOR PETITIONER: LARRY J. STROBLE RANDAL J. KALTENMARK BARNES & THORNBURG LLP Indianapolis, IN

ATTORNEYS FOR RESPONDENT: STEVE CARTER ATTORNEY GENERAL OF INDIANA JENNIFER E. GAUGER DEPUTY ATTORNEY GENERAL Indianapolis, IN ________________________________________________________________________

IN THE INDIANA TAX COURT
________________________________________________________________________ WELCH PACKAGING GROUP, INC. and Subsidiaries, ) ) ) Petitioner, ) ) v. ) Cause No. 49T10-0503-TA-21 ) INDIANA DEPARTMENT OF ) STATE REVENUE, ) ) Respondent. ) ________________________________________________________________________ ORDER ON PARTIES' CROSS-MOTIONS FOR SUMMARY JUDGMENT ________________________________________________________________________ NOT FOR PUBLICATION November 13, 2007 FISHER, J. Welch Packaging Group, Inc. and Subsidiaries (Welch) appeals the Indiana Department of State Revenue's (Department) final determination assessing it with additional corporate income tax liability for the 1998, 1999, and 2000 taxable years (the years at issue). The matter, currently before the Court on the parties' cross-motions for summary judgment, presents the following issue for review: whether, in apportioning sales to Indiana for Indiana adjusted gross income tax purposes, the numerator of Welch's sales factor should have included its sales within the state of Michigan.

MATERIAL FACTS The material facts as they relate to this case are undisputed. Welch, an Indiana corporation with its principal place of business in Elkhart, Indiana, sells packaging materials. During the years at issue, Welch was the parent corporation of two subsidiaries: Elkhart Container, Inc. (ECI) and Barger Packaging Corporation (BPC). ECI and BPC employed salespeople who solicited business in, and delivered products to, the state of Michigan. As a result of their Michigan sales, ECI and BPC were subject to, and paid, the Michigan Single Business Tax (MSBT) during the years at issue. 1 Welch, ECI, and BPC filed consolidated Indiana adjusted gross income tax returns for the years at issue. To determine their combined tax liability, Welch used the threefactor formula set forth in Indiana Code

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