- Department of Revenue of Kentucky v. Davis
-
Department of Revenue of Kentucky v. Davis 
Supreme Court of the United StatesArgued November 5, 2007
Decided May 19, 2008Full case name Department of Revenue of Kentucky et al. v. Davis et ux. Docket nos. 06-666 Prior history On Writ of Certiorari to the Court of Appeals of Kentucky. Holding Court membership Chief Justice
John G. RobertsAssociate Justices
John P. Stevens · Antonin Scalia
Anthony Kennedy · David Souter
Clarence Thomas · Ruth Bader Ginsburg
Stephen Breyer · Samuel AlitoCase opinions Plurality Souter (opinion of the Court except for Part III-B), joined by Stevens, Breyer; Roberts, Ginsburg (all but Part III-B); Scalia (all but Parts III-B and IV) Concurrence Roberts Concurrence Stevens Concurrence Scalia Concurrence Thomas Dissent Kennedy, joined by Alito Dissent Alito Department of Revenue of Kentucky v. Davis, 553 U.S. 328 (2008) is a decision by the Supreme Court of the United States which upheld a Kentucky law that provides a preferential tax break to Kentucky residents who invest in bonds issued by the state and its municipalities (municipal bonds). The Court held in a 7-2 vote that the State of Kentucky does not engage in unconstitutional discrimination against interstate commerce by exempting the interest on its bonds from residents’ taxable income while taxing the interest earned on the bonds of other states.[1]
The case has national implications because thirty-six (36) states have tax schemes similar to the one at issue in Kentucky.[2]
Contents
Background
George and Catherine Davis sued the State of Kentucky under the legal theory that the State of Kentucky violated the Dormant Commerce Clause, a legal implication of the Commerce Clause, by providing a differential tax treatment to gains earned from investments in municipal bonds from Kentucky versus other states.[3]
See also
Notes
- ^ Greenhouse, Linda (May 20, 2008). "Court Upholds Tax Exemptions for Municipal Bonds". New York Times. http://www.nytimes.com/2008/05/20/business/20bizcourt.html?_r=1&pagewanted=print&oref=slogin. Retrieved 2008-05-20.
- ^ Department of Revenue of Kentucky v. Davis 553 U.S. ____, pg 5.
- ^ Department of Revenue of Kentucky v. Davis 553 U.S. ____, pg 6.
External links
- Supreme Court Decision - Slip Opinion
Categories:- United States Supreme Court cases of the Roberts Court
- United States Dormant Commerce Clause case law
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