Forum

U.S. Supreme Court

Case Status

Decided

Docket Number

Term

2014 Term

Oral Argument Date

December 08, 2014

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Questions Presented

Whether the Tax Injunction Act, which provides that “[t]he district courts shall not enjoin, suspend or restrain the assessment, levy or collection of any tax under State law where a plain, speedy and efficient remedy may be had in the courts of such State,” bars federal court jurisdiction over a suit brought by non-taxpayers to enjoin the informational notice and reporting requirements of a state law that neither imposes a tax, nor requires the collection of a tax, but serves only as a secondary aspect of state tax administration.

Case Updates

Supreme Court overturns jurisdictional bar in certain state tax cases

March 03, 2015

The Court rejected Colorado’s argument that federal courts are barred from hearing challenges to state laws if the result could indirectly affect the collection of state taxes.

U.S. Chamber files amicus brief

September 16, 2014

In its brief, the U.S. Chamber asked the Supreme Court to overturn a Tenth Circuit ruling that the Tax Injunction Act (“TIA”) bars federal courts from exercising jurisdiction over any lawsuit that challenges a state’s methods of administrating its tax laws and generating revenue. The Chamber argued that since plaintiffs are not state taxpayers, are not challenging state authority to collect tax and are suing for relief unrelated to tax liability to the state, that federal courts’ jurisdiction should not be barred in cases like Brohl brought in the federal courts. The Chamber further argued that the Act’s original intent was to prevent lawsuits brought by taxpayers intent on avoiding paying their tax bill and that the jurisdictional bar only applies when a state taxpayer seeks a federal-court order that would decrease the amount of taxes the taxpayer owes to the state.

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