Department of Revenue of Kentucky v. Davis

From Wikipedia, the free encyclopedia

Department of Revenue of Kentucky v. Davis
Supreme Court of the United States
Argued November 5, 2007
Decided May 19, 2008
Full case name: Department of Revenue of Kentucky et. al. v. Davis et ux.
Docket #: 06-666
Citations: U.S.
Prior history: On Writ of Certiorari to the Court of Appeals of Kentucky.
Holding
Court membership
Chief Justice: John Glover Roberts, Jr.
Associate Justices: John Paul Stevens, Antonin Scalia, Anthony Kennedy, David Souter, Clarence Thomas, Ruth Bader Ginsburg, Stephen Breyer, Samuel Alito
Case opinions
Plurality by: 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 by: Roberts
Concurrence by: Stevens
Concurrence by: Scalia
Concurrence by: Thomas
Dissent by: Kennedy
Joined by: Alito
Dissent by: Alito

Department of Revenue of Kentucky v. Davis, 553 U.S. ___ (2008) is a decision, in a 7-2 vote, 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 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

[edit] 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]

[edit] See also

[edit] Notes

  1. ^ Greenhouse, Linda. "Court Upholds Tax Exemptions for Municipal Bonds", New York Times, May 20, 2008. Retrieved on 2008-05-20. 
  2. ^ Department of Revenue of Kentucky v. Davis 553 U.S. ____, pg 5.
  3. ^ Department of Revenue of Kentucky v. Davis 553 U.S. ____, pg 6.

[edit] External links