Monday, January 22, 2007
Taxpayers George and Catherine Davis have filed their response response to Kentucky's cert. petition in the U.S. Supreme Court in Davis v. Department of Revenue,193 S.W.3d 557 (Ky. App. 2006), in which the Kentucky Court of Appeals held that the state's tax system violates the dormant commerce clause of the U.S. Constitution by exempting interest on Kentucky state & local bonds while taxing interest on out of state bonds. The opinion notes that Kentucky's system is used in a majority of states, and that the only court to consider the commerce clause issue (Ohio) upheld the constitutionality of the system. The Kentucky Supreme Court denied the state's motion for discretionary review. Department of Revenue v. Davis, No. 2006-SC-105-D (8/17/06).
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