Taxpayer standing

Taxpayer standing is the concept that any person who pays taxes should have standing to file a lawsuit against the taxing body if that body allocates funds in a way that the taxpayer feels is improper. The United States Supreme Court has held that taxpayer standing is "not" a sufficient basis for standing against the United States government, unless the government has allocated funds in a way that violates a specific prohibition found in the Constitution. (See "Flast v. Cohen", 392 U.S. 83 (1968)). The Court has consistently found that the conduct of the federal government is too far removed from individual taxpayer returns for any injury to the taxpayer to be traced to the use of tax revenues. In "DaimlerChrysler Corp. v. Cuno", 547 U.S. ___ (2006), the Court extended this analysis to state governments as well.

However, the Supreme Court has also held that taxpayer standing "is" constitutionally sufficient to sue a municipal government in a federal court. States are also protected against lawsuits by their sovereign immunity. Even where states waive their sovereign immunity, they may nonetheless have their own rules limiting standing against simple taxpayer standing against the state. Furthermore, states have the power to determine what will constitute standing for a litigant to be heard in a state court, and may deny access to the courts premised on taxpayer standing alone.

In the U.S. Commonwealth of Virginia, the Supreme Court of Virginia has more-or-less adopted a similar rule. An individual taxpayer generally has standing to challenge an act of a city or county where they live, but does not have general standing to challenge state expenditures.