Federalism

Question 1

State Taxation on Interstate Commerce

Answer 1

The state may not discriminatorily tax against interstate commerce, otherwise violation of 
1. Commerce clause
2. EPC 
3. Privileges and immunities 
(analysis for each)

A state tax that is non-discriminatory will be valid if:

1. The activity taxed has a substantial nexus to the state (significant or substantial connection to the state)
2. The tax is fairly apportioned
3. There must be a fair relationship between the tax and the services or benefits provided by the state

Question 2

Tenth Amendment

Answer 2

Provides that powers not delegated to the US by the Con, nor prohibited to the states, are reserved to the states.

Restriction on power of Congress to regulate the states.
Prevent Congress from commanding state officials or specifically regulating the states.

Example: Regulation requiring states adopt measures to comply with another proper federal regulation=classic commandeering.

Question 3

Spending Power–regulation of states

Answer 3

Congress has the broad spending power. The power is to spend for the general welfare of the US. Congress may condition grants to states, even if the condition does not involve a power held by Congress. The condition will be valid if it:

1. the condition (what state must do) is clearly stated
2. The condition is related to purpose of spending power.
3. The condition is not unduly coercive

Question 4

Commerce Clause

Answer 4

Congress regulates IC. *check if Congress can regulate this law
Congress’s power not exclusive, state may regulate local aspects of interstate commerce, unless preempted by federal law.
Even where there is no federal law on point, a state law that discriminates against IC will be held invalid as violating the DCC unless the state can prove the laws are
1. necessary (narrowly tailored)
2. to achieve an important state interest

Exceptions: market participant or traditional public function.

If the law does not discriminate against IC, then the law will be valid unless the law places an undue burden on IC.

Undue burden test:
Balance the legitimate (non-discriminatory) state interest against the burden on IC