Wednesday, September 6, 2006
State and Local Tax guru Walter Hellerstein (Georgia) offers his views on Davis v. Department of Revenue, No. 2004-CA-001940-MR (Kent. Ct. App. 1/6/06), appeal denied, No. 2006-SC-105-D (Kent. Sup. Ct. 8/17/06), in Discrimination Against Out-of-State Municipal Bond Income:
It has always been my view, reflected in the treatise, that the widespread practice among the states of exempting the interest of federally tax-exempt bonds issued by the state or its own political subdivisions while taxing the interest from tax-exempt bonds issued by other states and their political subdivisions discriminated against interstate commerce in violation of the Commerce Clause.
(Hat Tip: Marjorie Kornhauser.)