Mississippi imposed a 5% tax on the appellant, a Michigan corporation which transported vehicles to Mississippi for GM. Appellant paid the tax and then sued for a refund.
The Mississippi Supreme Court upheld the validity of the tax.
Is Mississippi's tax valid under the dormant commerce clause?
Page 347
[A] tax against Commerce Clause challenge [will be sustained] when the tax is
- applied to an activity with a substantial nexus with the taxing State,
- is fairly apportioned,
- does not discriminate against interstate commerce, and
- is fairly related to the services provided by the State.
[N]o claim is made that the activity is not sufficiently connected to the State to justify a tax, or that the tax is not fairly related to benefits provided the taxpayer, or that the tax discriminates against interstate commerce, or that the tax is not fairly apportioned.
Yes, Mississippi's tax is valid. Affirmed.
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