lawlibrary Maryland Law

U.S. Supreme Court rules on Maryland’s Personal Income Tax Scheme

In a 5-4 decision, the U.S. Supreme Court has held that the personal income tax scheme in Maryland violates the dormant Commerce Clause. The Commerce Clause grants the U.S. Congress the power to regulate commerce among states. The dormant Commerce Clause is a derivative of the Commerce Clause and prevents states from “discriminat[ing] between transactions on the basis of some interstate element”. Basically, the Supreme Court found that Maryland’s personal income tax scheme violates the dormant Commerce Clause because Maryland’s personal income tax scheme does not offer, at the county-level, full credit for personal income taxes paid in other states.

For more information about this decision, check out these articles.

You can read the opinion here.


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