In this episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor introduce federal preemption and how the Supremacy Clause limits state taxing authority. When federal and state laws conflict, federal law controls, requiring state law to give way.
Jeremy and Chelsea outline the two types of preemption: express and implied.
Drawing on
By Ted Friedman and Madison Barnett
The Maryland Tax Court held that the Comptroller’s policy of not allowing carryforwards of unsubtracted exempt federal obligation interest violates the Supremacy Clause of the U.S. Constitution. Under the Comptroller’s policy, interest earned on Maryland obligations is subtracted in its entirety when computing Maryland taxable income. As a result
The New Jersey Supreme Court granted leave to appeal in the Whirlpool Properties Inc., and Pfizer Inc. cases to determine whether the New Jersey “Throwout Rule” is facially unconstitutional. Whirlpool Properties, Inc. v. Div. of Taxation and Pfizer, Inc. v. Div. of Taxation, Dockets A-1180-08T2 and A-1182-08T2 (N.J. Super. Ct. App. Div.
