Richard A. Levin, Tax Commissioner of Ohio v. Commerce Energy, Inc., et al. (560 U.S. 413)

U.S. Supreme Court · decided June 1, 2010 · Supreme Court Database (Spaeth)

Citation
560 U.S. 413 · 130 S. Ct. 2323
Decided
June 1, 2010
Term
October Term 2009
Vote
9–0
Majority author
Justice Ginsburg
Issue area
Federalism
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Conservative

Opinion excerpt

Justice Ginsburg delivered the opinion of the Court. This ease presents the question whether a federal district court may entertain a complaint of allegedly discriminatory state taxation, framed as a request to increase a commercial competitor’s tax burden. Relevant to our inquiry is the Tax Injunction Act (TLA or Act), 28 U. S. C. § 1841, which prohibits lower federal courts from restraining “the assessment, levy or collection of any tax under State law where a plain, speedy and efficient remedy may be had in the courts of such State.” More embracive than the TIA, the comity doctrine applicable in state taxation cases restrains federal courts from entertaining claims for relief that risk disrupting state tax administration. See Fair Assessment in Real Estate Assn., Inc. v. McNary, 454 U. S. 100 (1981). The comity doctrine, we hold, requires that a claim of the kind here presented proceed originally in state court. In so ruling, we distinguish Hibbs v. Winn, 542 U. S. 88 (2004), in which the Court held that neither the TIA nor the comity doctrine barred a federal district court from adjudicating an Establishment Clause challenge to a state tax credit that allegedly funneled public funds to parochial schools. I A Historically, all natural gas consumers in Ohio purchased gas from the public utility, known as a local distribution company (LDC), serving their geographic area. In…

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