Intergovernmental Tax and Regulation Immunities

Question 1

What is the rule if a FEDERAL TAX or REGULATION applies to BOTH states and private entities?

Answer 1

GENERAL RULE –> congress may subject STATE and LOCAL gov activities to TAX or REGULATION as long as it applies to BOTH the public and private sector

Example –> minimum wage laws

Question 2

What is the rule if a FEDERAL TAX or REGULATION applies only to states, and not to private businesses?

What are the exceptions (2)?

Answer 2

General rule –> may be limited by 10th amendment

EXAMPLE –> requiring states to regulate radioactive waste or take title to it

EXCEPTIONS.

1. Civil Rights - Congress MAY restrict state activities that violate civil liberties
2. Spending Power Conditions - congress may condition grants of money to STATE or LOCAL gov, even if congress lacks power to directly regulate, as long as conditions are:
3. clearly stated
4. relate to purpose of program
5. are not UNDULY coercive

NOTE –> almost never struck down.

Question 3

May congress require state executive officials to enforce federal laws?

Answer 3

No

REASONING –> would upset “dual sovereignty”. Fed may not COMMANDEER state officials.

EXAMPLE –> requiring police to enforce fed law

Question 4

What is the rule regards to STATE taxation of federal activities?

Answer 4

State may NOT –> DIRECTLY tax federal instrumentalities without the consent of congress

HOWEVER –> non-discriminatory and indirect taxes are OK IF they do not UNREASONABLY BURDEN the federal government

EXAMPLE –> state income tax of fed EE’s

Question 5

May STATE regulate federal gov or EE’s?

Answer 5

State MAY NOT regulate federal gov or its agents while performing federal functions