Richard A. Levin, Tax Commissioner of Ohio v. Commerce Energy, Inc.

Summary

The Supreme Court held that the comity doctrine bars federal courts from entertaining suits challenging state tax exemptions when the relief sought would increase a competitor's tax burden. The Court distinguished Hibbs v. Winn, noting that unlike the third-party challengers there, these plaintiffs directly object to their own tax situation. Justice Thomas concurred in the judgment, arguing the Tax Injunction Act's jurisdictional bar should be resolved first.