Hibbs v. Winn (SCOTUS 2004), 542 U.S. 88

Summary

The Supreme Court affirmed the Ninth Circuit's determination that the Tax Injunction Act does not bar Arizona taxpayers' federal-court Establishment Clause challenge to a state income-tax credit for contributions to private-school tuition organizations, because the challengers do not contest their own tax liability, seek only prospective relief, and their success would increase rather than diminish state revenues; the suit implicates neither the Act's conception of 'assessment' nor its revenue-protective purposes. The Court also held the Director's certiorari petition timely, concluding that the court of appeals' sua sponte order recalling its mandate and directing briefing on rehearing en banc suspended the judgment's finality, so the ninety-day clock ran from the denial of rehearing en banc. Justice Stevens concurred, stressing that prolonged congressional silence reinforces a settled statutory interpretation. Justice Kennedy, joined by Chief Justice Rehnquist and Justices Scalia and Thomas, dissented, arguing the Act's literal text bars any order preventing a State from recording the tax liability its law mandates.

Holding

Whether the petition for certiorari was timely under the ninety-day limitation of the certiorari statute.. Yes. A court of appeals' order, on its own motion, recalling its mandate and directing the parties to brief whether the case should be reheard en banc suspends the judgment's finality just as a timely rehearing petition would; the ninety-day period runs from the court's order denying rehearing en banc, and the petition filed within that period was timely.

The meaning of 'assessment' in the Tax Injunction Act.. 'Assessment' in the Act denotes the official recording of a taxpayer's tax liability — the bookkeeping step that triggers levy and collection efforts — not the entire plan or scheme of taxation; an injunction against allowing a tax credit does not restrain any such recording.

Whether the Tax Injunction Act bars respondents' Establishment Clause challenge to the state tax credit.. No. Respondents' suit — brought by taxpayers who do not contest their own liability and who seek prospective relief that would increase, not decrease, state revenues — implicates neither the Act's conception of assessment nor any of the statute's underlying purposes, so it may proceed in federal court.

Hibbs v. Winn

Summary

Holding

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