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What is the "Supremacy Clause" of Article VI of the Constitution?
Provides for preemption of other conflicting laws. Preemption may be EXPRESS (such as where a federal statute expressly says that state laws are preempted) or it may be IMPLIED
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When is preemption Implied?
- When it is impossible to simultaneously comply with both federal and state law
- State law impedes the achievement of a federal objective, or
- Congress evidences a clear intent to preempt state law
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May states tax the federal government?
No. States may not charge state tax to be paid out of the federal treasury for federal government activity. For example, a state could not level property taxes on a federal agency occupying a building, or impose sales taxes on the goods sold at a PX.
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What is the Dormant Commerce Clause?
In recognition that Congress could legislate to prevent burdens on interstate commerce, the Dormant Commerce Clause operates as a bar on state law that unduly burdens interstate commerce.
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What is the Privileges and Immunities Clause?
- Article IV:
- • Prevents a state or municipality from denying citizens of other states (without substantial justification) the privileges and immunities it affords its own citizens |
- Fourteenth Amendment:
- • Preserves a person's right to travel from one state to another.
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If a state law does NOT discriminates against out-of-staters | 1) Is there an impact on the DCC? | 2) Is there an impact on the Privileges and Immunities clause?
- 1) Dormant Commerce Clause: The law could violate the DCC if the law's burden on interstate commerce outweighs the benefits of the law
- 2) Privileges and Immunities: No violation, because this clause does not apply if there is no discrimination against out-of-staters
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If a state law discriminates against out-of-staters, does it violate the DCC? (hint: general rule, 3 exceptions)
- If a law burdens interstate commerce, the law will violate DCC unless—|
- 1) Least discriminatory means to reach important purpose: It is necessary to achieve an important state government purpose (rarely found) AND the state government shows that no less discriminatory alternative can achieve its goal, OR |
- 2) Congressional approval: Congress expressly approves the law, OR |
- 3) Market participant exception: The state or local government is acting as a market participant—in this case, the state may favor its own citizens over out-of-staters (e.g., in-state tuition at a state university)
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What happens if a state law discriminates against out-of-staters re: their ability to earn a living?
- RULE: The law violates the Privileges and Immunities Clause of Article IV unless the law is necessary to achieve an IMPORTANT GOVERNMENT PURPOSE |
- NOTE: Corporations and aliens cannot invoke the privileges and immunities clause
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Can a state use its tax system to assist in-state businesses?
- NO |
- This constitute discrimination against out-of-state businesses, and would violate the DCC
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When can a state impose taxes on an interstate business or company?
- 1) Nexus: When there is a substantial nexus between the product or activity to be taxed in the state, AND
- 2) Apportionment: The taxation is fairly apportioned among the taxing state and other states in which the business or company may operate
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Must the courts of one state give Full Faith and Credit to judgments from courts of another state?
- Yes, provided the following three are all satisfied: |
- 1) PJ & SMJ: the court that rendered the judgment had personal jurisdiction and subject matter jurisdiction over the ∆ and the controversy, AND
- 2) On Merits: the judgment entered was on the merits, AND
- 3) Final: the judgment was final.
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