PHOENIX -In a move that expands federal government control over state tax codes, the Supreme Court ruled yesterday that challenges to state tax credits can be heard in federal court. The ruling undermines the authority of state courts to rule on state tax matters and allows federal courts to interfere with the administration of state tax systems.
"This decision is an erosion of the important constitutional boundary between the autonomy of individual states and the powers of the federal government," said Goldwater Institute constitutional expert Mark Brnovich.
The U.S. Supreme Court decision allows a challenge to Arizona's education tax credits to proceed in U.S. District Court despite an Arizona State Supreme Court ruling upholding the tax credit's constitutionality. Forty states joined Arizona in arguing that federal courts should not have jurisdiction over state tax matters.
Contacts:
Mark Brnovich, Director, Goldwater Institute Center for Constitutional Government, (602) 462-5000 x 232, mbrnovich@goldwaterinstitute.org
Andrea Woodmansee, Director of Communications, Goldwater Institute, (602) 462-5000 x 226, awood@goldwaterinstitute.org
