U.S. Supreme Court

Case Status


Docket Number



Cert. Denied


Questions Presented

Whether the closely-divided Washington Supreme Court erred in concluding - contrary to the Supreme Courts of Pennsylvania and Virginia - that the dormant Commerce Clause does not bar a city from imposing a business activities tax on 100 percent of a taxpayer's gross receipts derived from activities carried on in part within the city and in part in other States.

Case Updates

Cert. petition denied

March 04, 2008

NCLC urges Supreme Court to review business activity tax on gross receipts derived from interstate activities

December 14, 2007

NCLC urged the Supreme Court to review a Washington Supreme Court decision holding that the Commerce Clause does not bar a city from imposing a business activity tax on one hundred percent of a taxpayer’s gross receipts, including receipts derived from interstate activities. NCLC argued that the Seattle and Tacoma taxes were more akin to income taxes than to sales taxes and therefore violate prior Supreme Court precedent requiring that the income tax base must be divided to fairly reflect the taxpayer’s activities within the state. NCLC also warned that the imposition of income taxes disguised as sales taxes is on the rise among the states.

Case Documents