borders.[567]

Incomes of Foreign Corporations.--A tax based on the income of
a foreign corporation may be determined by allocating to the State a
proportion of the total income which the tangible property in the State
bears to the total.[568] However, such a basis may work an
unconstitutional result if the income thus attributed to the State is
out of all appropriate proportion to the business there transacted by
the corporation. Evidence may always be submitted which tends to show
that a State has applied a method which, albeit fair on its face,
operates so as to reach profits which are in no sense attributable to
transactions within its jurisdiction.[569] Nevertheless, a foreign
corporation is in error when it contends that due process is denied by a
franchise tax measured by income, which is levied, not upon net income
from intrastate business alone, but on net income justly attributable to
all classes of business done within the State, interstate and foreign,
as well as intrastate business.[570] Inasmuch as the privilege granted
by a State to a foreign corporation of carrying on local business
supports a tax by that State on the income derived from that business,
it follows that the Wisconsin privilege dividend tax, consistently with
the due process clause, may be applied to a Delaware corporation, having
its principal offices in New York, holding its meetings and voting its
dividends in New York, and drawing its dividend checks on New York bank
accounts. The tax is imposed on the "privilege of declaring and
receiving dividends" out of income derived from property located and
business transacted in the State, equal to a specified percentage of
such dividends, the corporation being required to deduct the tax from
dividends payable to resident and nonresident shareholders and pay it
over to the State.[571]

Chain Store Taxes.--A tax on chain stores, at a rate per store
determined by the number of stores both within and without the State, is
not unconstitutional as a tax in part upon things beyond the
jurisdiction of the State.[572]

Insurance Company Taxes.--A privilege tax on the gross premiums
received by a foreign life insurance company at its home office for
business written in the State does not deprive the company of property
without due process;[573] but a tax is bad when the company has
withdrawn all its agents from the State and has ceased to do business,
merely continuing to be bound to policyholders res