U.S. Supreme Court Denies Cert in State Tax Retroactivity Cases

Overview


Peter Faber predicted that the Supreme Court’s refusal to review seven tax rulings which upheld retroactive state tax laws means that “state legislatures will be emboldened to adopt retroactive legislation and that state revenue departments will be encouraged to seek retroactive legislation whenever they lose a court case.” Mr. Faber suggested that a more conservative Supreme Court “may be more receptive to taxpayer arguments that retroactive tax legislation that upsets legitimate taxpayer expectations is unconstitutional.”