Lesson 5: State Regulation of Commerce: The Dormant Commerce Clause

Question 1

Dormant Commerce Clause

Answer 1

The congressional power over interstate commerce is not exclusive. Therefore, the states have concurrent power to regulate where there is no relevant federal legislation. However, any such regulations by the states may not unduly burden or discriminate against interstate commerce.

Question 2

State Taxation of Interstate Commerce

Answer 2

A state tax on interstate commerce will be valid as long as: 1) it is revenue raising and nondiscrimnatory in purpose;

2) there is a nexus between the tax imposed and the benefits/protections afforded by the taxing state; and
3) the tax is fairly apportioned.