Michael Fitzgerald, Treasurer of Iowa v. Racing Association of Central Iowa et al. (539 U.S. 103)
U.S. Supreme Court · decided June 9, 2003 · Supreme Court Database (Spaeth)
- Citation
- 539 U.S. 103 · 123 S. Ct. 2156
- Decided
- June 9, 2003
- Term
- October Term 2002
- Vote
- 9–0
- Majority author
- Justice Breyer
- Issue area
- Economic Activity
- Disposition
- Reversed and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
Opinion excerpt
Justice Breyer delivered the opinion of the Court. Iowa taxes adjusted revenues from slot machines on excursion riverboats at a maximum rate of 20 percent. Iowa Code § 99F.11 (2003). Iowa law provides for a maximum tax rate of 36 percent on adjusted revenues from slot machines at racetracks. §§99F.4A(6), 99F.11. The Iowa Supreme Court held that this 20 percent/36 percent difference in tax rates violates the Federal Constitution’s Equal Protection Clause, Amdt. 14, §1. 648 N. W. 2d 555 (2002). We disagree and reverse the Iowa Supreme Court’s determination. I — Before 1989, Iowa permitted only one form of gambling— parimutuel betting at racetracks — the proceeds of which it taxed at a six percent rate. Iowa Code § 99D.15 (1984). In 1989, it authorized other forms of gambling, including slot machines and other gambling games on riverboats, though it limited bets to $5 and losses to $200 per excursion. 1989 Iowa Acts ch. 67, §§ 3, 9(2); Iowa Code § 99F.3 (1996). Iowa taxed adjusted revenues from slot machine gambling at graduated rates, with a top rate of 20 percent. 1989 Iowa Acts ch. 67, §11; Iowa Code §99F.ll (1996). In 1994, Iowa enacted a law that, among other things, removed the riverboat gambling $5/$200 bet/loss limits, 1994 Iowa Acts ch. 1021, §19, authorized racetracks to operate slot machines, § 13; Iowa Code §§99F.1(9), 99F.4A (1996), and imposed a graduated tax upon…
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