Appealed from the United States Court of Appeals for the Sixth Circuit (Feb. 4, 2009)
Oral argument: March 22, 1010
TAX INJUNCTION ACT, COMITY, SUBJECT MATTER JURISDICTION, FEDERALISM
Respondent, Commerce Energy, Inc., sued the Ohio Tax Commissioner, Petitioner, Richard Levin, alleging Ohio's tax scheme violates the Commerce Clause and the Equal Protection Clause of the U.S. Constitution. Commerce contends that four Ohio companies benefit from certain tax exemptions that Commerce is not eligible for as an out-of-state company. Levin argues that the Tax Injunction Act and principles of comity bar Commerce's suit from proceeding in a federal court. Commerce counters that a federal court has jurisdiction to hear their suit. In this case, the U.S. Supreme Court will clarify the scope of the federal judiciary's authority to hear lawsuits regarding state tax law.