State Regulation/Taxation of Commerce

Question 1

Congress on states on commerce clause

Answer 1

1. congress may permit state regs that vio commerce clause
2. congress may prohibit state regs that may be upheld under commerce clause.
3. congress may not permit states to vio civil liberties

Question 2

DCC and Negative Commerce Clause

Answer 2

1. commerce clause restricts state regulation of IC.
2. states may not favor local econ interests
3. states may not unduly burdens IC, state interest outweighs
4. states may regulate local aspects of IC

Question 3

States may not favor local econ interests/discriminate against IC, except:

Answer 3

commerce clause

1. it furthers an important, non econ state interest + no reasonable non discriminatory alt available
2. state may prefer own citizens when acting as a market participant- buying, selling, hiring labor, giving subsidies
3. law involving traditional state gov function (waste disposal), because legitimate objectives

P&I

1. if action denies out of stater important econ interest (livelihood) or civil liberties
2. law intentionally protectionist
3. state must have substantial justification, no less restrictive means

Question 4

Discriminatory laws may violate…

Answer 4

1. federal laws
2. P&I
3. equal protection clause

Question 5

State law discriminates against out of staters, apply:

Answer 5

1. commerce clause
2. P&I, if applicable (denies out of stater important econ interest (livelihood) or civil liberties and is intentionally protectionist)

Question 6

State law does not discriminate against out of staters, apply

Answer 6

commerce clause

1. law burdens IC
2. burden cannot outweigh state’s interest in action
3. no less restrictive alternative

P&I
1. does not apply where no dsicrimination

Question 7

Who does the commerce clause protect?

Answer 7

Unlike PI&I, aliens, corporations, and citizens

Question 8

21st Amendment

Answer 8

1. state can control intrastate reg on import of liquor, how sold/used
2. state cant regulate for econ pref for local liquor (vio commerce clause)
3. IC regulation subject to commerce clause
   
   • congress may condition grants of money (min drinking age)

Question 9

State taxing on IC

Answer 9

1. state tax that discriminates IC vio commerce clause, P&I, EPC
2. non discriminatory tax valid if:
   
   • applies to activity with substantial nexus to taxing state (contacts)
     - tax fairly apportioned
     - tax fairly related to service/benefit provided by state
     - does not discriminate against IC

*may be tax on instrument used to transport goods (planes, trucks), privilege, license, franchise, occupational), sales tax

Question 10

Use taxes

Answer 10

1. on goods bought out of state, used within

2. can’t be higher than sales tax

Question 11

Ad valorem property tax

Answer 11

Based on assessed value of property, after no longer in IC

• in IC transit = no state tax
• until intended to end or shipment suspeded