INTERSTATE COMMERCE MUST PAY ITS WAY: THE DEMISE OF SPECTOR

In March of this year the United States Supreme Court unanimously decided that a gross income tax imposed by a state on the "privilege" of doing business is valid even where the tax is applied to a business engaged exclusively in interstate commerce. The Court specifically overruled Specto...

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Bibliographic Details
Published in:National tax journal 1978-03, Vol.31 (1), p.53-58
Main Authors: SIMET, DONALD P., LYNN, ARTHUR D.
Format: Article
Language:English
Subjects:
Business
Business structures
Corporate taxes
Court decisions
Decisions
Direct taxes
Franchise taxes
Gross receipts taxes
Income tax, State
Income taxes
Interstate commerce
Property taxes
State court decisions
State income tax
State taxes
Supreme court
Supreme Court decisions
Taxation
Taxes
United States
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Summary:In March of this year the United States Supreme Court unanimously decided that a gross income tax imposed by a state on the "privilege" of doing business is valid even where the tax is applied to a business engaged exclusively in interstate commerce. The Court specifically overruled Spector Motor Service v. O'Connor and stated a four part test for determining the validity of taxes of this character. A brief examination of the origins of the Spector rule and the Court's current test seems merited if the significance of the decision for taxes imposed on exclusively interstate business is to be understood.
ISSN:0028-0283
1944-7477
DOI:10.1086/NTJ41862172