On October 13, 2015, the U.S. Supreme Court issued an order following TEI's recommendation to issue a "GVR order" in First Marblehead v. Massachusetts Commissioner of Revenue. First Marblehead involves the proper apportionment of financial institution's income under Massachusetts' financial institutions excise tax under the dormant Commerce Clause.
On July 6, 2015, TEI filed an amicus brief supporting the taxpayer's petition for writ of certiorari in Hambleton v. Washington Department of Revenue, No. 14-1436. Hambleton challenges the Washington Legislature's eight-year retroactive amendment of Washington's estate tax. The Washington Legislature enacted the amendment in response to the Washington Supreme Court's decision in Estate of Bracken, 290 P.3d 99 (Wash.
TEI Files Amicus Brief With U.S. Supreme Court in Massachusetts' First Marblehead Apportionment Case
On July 2, 2015, TEI filed an amicus brief with the U.S. Supreme Court in a Massachusetts case challenging the application of the internal consistency test, First Marblehead Corp. v. Massachusetts Commissioner of Revenue, No. 14-1422. First Marblehead involves the proper apportionment of financial institution's income under Massachusetts' financial institutions excise tax.
On May 18, 2015, the United States Supreme Court issued a decision in Comptroller v. Wynne, holding that Maryland's personal income tax- which did not offer its residents a full credit for income taxes paid to other states on income they earned in those states - was unconstitutional. The majority opinion (5-4), authored by Justice Alito, held that the tax violated the dormant Commerce Clause because it discriminated against interstate commerce. Justices Scalia, Thomas, and Ginsburg authored dissenting opinions on varying grounds.
TEI Files Amicus Brief with U.S. Supreme Court in Maryland's Comptroller v. Wynne Dormant Commerce Clause Case
On September 26, 2014, TEI filed an amicus brief with the U.S. Supreme Court in a case involving the limitations imposed by the federal Commerce Clause on a state's ability to tax business income earned outside the borders of that state (Comptroller v. Wynne). In a line of cases beginning with Complete Auto Transit v. Brady, the Court has consistently held that corporate income earned in multiple jurisdictions must be apportioned, with the domiciliary state taxing only its fair share.