Oklahoma Tax Commission v. Jefferson Lines, Inc.

Summary

The Court, in an opinion by Justice Souter joined by Chief Justice Rehnquist and Justices Stevens, Kennedy, and Ginsburg, held that Oklahoma may impose its sales tax on the full price of bus tickets sold in Oklahoma for interstate travel originating there. The tax satisfies all four requirements of Complete Auto: substantial nexus, fair apportionment, nondiscrimination, and fair relation to state-provided services. The Court distinguished Central Greyhound's tax on a carrier's gross receipts from this tax on a buyer's discrete purchase. Justice Scalia, joined by Justice Thomas, concurred in the judgment because the tax did not facially discriminate against interstate commerce, rejecting use of the remainder of Complete Auto's test. Justice Breyer, joined by Justice O'Connor, dissented, concluding that Central Greyhound required mileage apportionment and that the distinction between the two taxes was formal rather than practical.