State of Alaska, Department of Revenue v. Nabors International Finance, Inc. & Subsidiaries, Nabors International…

Summary

The Alaska Supreme Court held that the statute requiring certain low-tax foreign affiliates in a unitary business to be included in an Alaska corporate tax return is not facially unconstitutional. The statute is sufficiently definite for a civil economic regulation, does not facially discriminate against foreign commerce and survives Pike balancing, and has a rational relationship to preventing the exportation of Alaska value and protecting the state tax base. The court reversed the superior court's vagueness ruling, affirmed its rejection of the Commerce Clause and substantive due process challenges, and remanded for further proceedings.