Constitution: Commerce Clause

The Supreme Court of Arizona held that local surcharges imposed on car rental companies did not violate the US Commerce Clause or the state constitution’s anti-diversion clause. The surcharges, enacted by local initiative to fund sports facilities, were levied on car rental companies based on their income derived from renting vehicles. Representing a class of

The Virginia Supreme Court held that the use of the cost-of-performance method to apportion nearly 100% of the taxpayer’s sales of services to Virginia did not violate the U.S. Constitution, even though over 95% of the taxpayer’s customers were located outside of the state – perhaps an expected result for a services company based in

The New York City Tax Tribunal held that an out-of-state corporate taxpayer, with an indirect interest in a limited liability company investment fund engaged in business in New York City, had nexus with the City and was subject to tax on capital gain from its sale of the fund. The taxpayer had no property, employees,