Supreme Court of the United States
Richard A. Levin, Tax Commissioner of Ohio v. Commerce Energy, Inc.
June 1, 2010176 L. Ed. 2d 1131
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.
Holding
- Whether comity precludes federal jurisdiction over suits challenging state tax exemptions where relief would increase a competitor's burden.. The comity doctrine requires that a claim of the kind here presented proceed originally in state court.
Docket No. 09-223
Cited authorities
- 28 U.S.C. § 1341.10
- 28 U.S.C. § 1341
- Ohio Rev. Code Ann. § 5739.02
- 28 U.S.C. § 1331
- 42 U.S.C. § 1983
- 28 U.S.C. § 1341.10
- 28 U.S.C. § 41
- 62 Stat. 932