State Regulation & Taxation of Commerce Flashcards

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1
Q

The requirements for a “doing business” tax do not include:

A

that the tax be a flat tax

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2
Q

If a state imposes a nondiscriminatory tax on interstate commerce:

A

It may nevertheless violate the Commerce Clause

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3
Q

The power to regulate interstate commerce is a federal power, BUT states may regulate interstate commerce subject to

A

the negative implications of the Commerce Clause.

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4
Q

Who has the power to tax interstate commerce?

A

The federal government holds most of the power, but the states may tax local aspects

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5
Q

Under the Commerce Clause, ad valorem property taxes must be

A

fairly apportioned.

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6
Q

The Twenty-First Amendment allows states to:

A

Prohibit all sellers from making direct shipments of liquor to customers within the state

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7
Q

Under the Commerce Clause, a state regulation that makes it difficult for out-of-state purchasers to access privately owned in-state products is:

A

likely to be held invalid.

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8
Q

Under the Commerce Clause __________.

A

congress can adopt laws discriminating against interstate commerce and so can states if authorized by federal law

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9
Q

If Congress has not enacted laws with regard to a specific area of interstate commerce, a state may regulate a local aspect of this interstate commerce:

A

When the state’s regulation does not discriminate against out-of-state competition and the regulation does not unduly burden interstate commerce

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10
Q

When apportioning a state ad valorem property tax on instrumentalities used to transport goods in interstate commerce, the state may:

A

Impose an ad valorem property tax on instrumentalities of interstate commerce even if a taxpayer can prove double taxation

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11
Q

In assessing whether a nondiscriminatory state tax on interstate commerce is valid absent any federal legislation in the area, courts will typically consider:

A

Whether there is a substantial nexus between the taxpayer and the state; whether the tax is fairly apportioned; and whether there is a fair relationship between the tax and the services or benefits provided by the state

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12
Q

Can a law that discriminates against interstate commerce be valid under the Commerce Clause?

A

Yes, Congress can pass laws that discriminate against interstate commerce, and the states can too if authorized by federal law

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13
Q

Ad valorem property taxes are taxes based on

A

a percentage of the assessed value of the property in question.

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14
Q

A state may impose an ad valorem property tax on goods shipped through interstate commerce when

A

the goods reach their destination.

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15
Q

A state use tax imposed on users of goods purchased out of state is usually invalid if it:

A

Imposes a higher tax on goods purchased out of state

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16
Q

To be constitutional, a “doing business” tax (e.g., a privilege, franchise, or occupation tax imposed on businesses for the privilege of doing business in a state):

A

Must be fairly apportioned and must fairly relate to services provided by the state

17
Q

Under the Twenty-First Amendment:

A

a state may not prohibit interstate shipments of liquor to pass through the state

18
Q

When apportioning a state ad valorem property tax on instrumentalities used to transport goods in interstate commerce, the state may:

A

Place on the taxpayer the burden of establishing that an instrumentality has acquired a taxable situs outside his domiciliary state

19
Q

What is the standard for determining whether a nondiscriminatory state law that burdens interstate commerce will be upheld?

A

The law will be upheld if the burden on interstate commerce does not outweigh the promotion of legitimate local interests

20
Q

If a state tax on interstate commerce discriminates against a natural person who is a nonresident, which of the following lists contains the constitutional clauses most likely to be relevant in determining whether the tax is valid?

A

Commerce Clause, Equal Protection Clause, and Article IV Privileges and Immunities Clause

21
Q

Generally, the Commerce Clause prohibits states from discriminating against out-of-state competition. An exception to this prohibition is where:

A

the state acts as a market participant.

22
Q

The Privileges or Immunities Clause of the Fourteenth Amendment

A

applies when a state denies its own citizens rights of national citizenship.

23
Q

A state use tax imposed on users of goods purchased out of state:

A

May be valid even if it seeks to have out-of-state sellers collect the tax

24
Q

Taxation as control over state

A

Congress may regulate states(and local govt) by putting conditions on a grant of money. This is under Congress’s spending power.

the conditions must be:

  1. clearly stated
  2. related to purpose of the program
  3. not unduley coersive.