South Dakota is the location for many national banks' credit card operations.How much income tax could the state of South Dakota collect on the banks that operate their credit card divisions there?

Question

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The state of South Dakota can collect income taxes from earnings on the credit card operations, even if the banks are not headquartered or incorporated in the state. This is because the income generated from the credit card operations is considered taxable income in South Dakota. However, the state cannot collect tax on the banks' full income or on foreign corporations.

South Dakota Is the Location for Many National Banks' Credit