Question

Cite the case of U.S. Court of Appeals for the Sixth Circuit case, Charlotte Cuno, et al., v. Daimler Chrystler, Inc., et al, dealing with the application of the Commerce Clause to state level taxation.

Answer 1

United States Court of Appeals, sixth circuit. ( Charlotte cuno vs Daimler chrysler Inc. ) No.01-3960

In the aforementioned case Charlotte cuno were the plaintiffs
Whereas Daimler Chrysler Inc were the Defendants.

                   The plaintiff filed this litigation, challenging the validity of certain state tax credits and local property tax abatements those were granted to Daimler Chrysler Corporation as an encouragement to the company to spread its operations in Toledo, Ohio. Also their contention was that the tax scheme discriminates against interstate commerce by allowing preferential treatment to instate investment, in violation of the commerce clause of the constitution of the United States and the Equal protection clause of the Ohio constitution.

                   Daimler chrysler filed the action to federal court, the district courtentered an order dismissing the complaint under federal rules of civil proceudres 12(b)(1) & 12(b)(6) for the failure to state a claim.

CONTENTION OF THE PLAINTIFF:

Ohio statutes authorzing the investment tax credit and property tax exemption violates the commerce clause of US constitution and plaintiff also claimed that the tax benefits also violates the Ohio Equal protection clause.

FEDERAL COURT:

The US supreme court has never delineated the scope of the doctrine that bars discriminatory taxes. The court has made that clear, that a tax statute's constitutionality doesnot depend upon whether one focuses upon the benefited or the burdened party. and the fact that a statute discriminates against business carried on outside the state by allowing a tax credit rather than by imposing a higher tax rate hence. therefore legally irrelevant.