Taxation-State and Local Commons^™

Strange Bedfellows: The Federal Constitution, Out-Of-State Nongrantor Accumulation Trusts, And The Complete Avoidance Of State Income Taxation, Jeffrey Schoenblum

Vanderbilt Law Review

With the maximum rate of federal income tax at 39.6 percent, the Medicare surtax on investment income of 3.8 percent, and some state income tax rates exceeding 9 percent, taxpayers in the highest brackets have been seeking to develop strategies to lessen the tax burden. One strategy that has been receiving increased attention is the use of a highly specialized trust known as the NING, a Nevada incomplete gift nongrantor trust, which eliminates state income taxation of investment income altogether without generating additional federal income or transfer taxes. A major obstacle standing in the way of accomplishing this objective, however, …

State And Local Taxation Of Financial Institutions:An Opportunity For Reform, C. James Judson, Susan G. Duffy

Vanderbilt Law Review

Forces at work in both public and private sectors may soon change the way state and local political subdivisions tax financial institutions. The market for financial services is changing dramatically. Governments have expanded substantially the scope of activities in which financial depositories may engage. The competitive environment for financial activities also is changing as general business corporations enter the financial services field, an area previously considered the exclusive domain of financial institutions. Financial institutions have increasing opportunities for interstate activity, which offers both risks and challenges. These changes have occurred during a period in which the extensive framework of state …

Significant Sales And Use Tax Developments During The Past Half Century, Jerome R. Hellerstein

Vanderbilt Law Review

Sales and use taxes have been the great growth taxes of state and local governments during the past half century. The general sales tax, along with selected levies on gasoline, tobacco, and liquor, has had phenomenal growth during the past fifty years. In 1932 only Mississippi imposed a general sales tax. It produced seven million dollars, less than one percent of Mississippi's total tax revenues. Taxes once introduced, however, tend to grow at least until widespread dissatisfaction leads to a taxpayers' revolt,such as California's Proposition 13' or the election of President Ronald Reagan and the ascendancy of political conservatism and …

Federal Limitations On State And Local Taxation, William R. Anderson

Vanderbilt Law Review

Federal Limitations on State and Local Taxation presents a central question about how usefully and how legitimately courts have dealt with the issues of state taxing powers. The United States Supreme Court has assumed a role as the principal architect of this component of federalism. State legislatures and tax officials have, of course, played roles, but they have always operated under the shadow of judicial doctrine. While Congress has not been wholly inactive, its role has been derivative, interstitial, and hesitant. Perhaps Congress' fact-finding role has been larger than its legislative role.'

Paul J. Hartman And The Literature Of State And Local Taxation-An Appreciation, William R. Andersen

Vanderbilt Law Review

The editors of this symposium have asked me for a brief account of the contributions of Professor Hartman's published writings in the field of state and local taxation. In fairness, those contributions cannot be accounted in brief; what follows is more of a bibliography, and an appreciation...

As a final example of Hartman's concern for institutional relationships in tax policy, mention should be made of the 1959 piece on municipal income taxation.' Here, Hartman has changed lenses on his microscope and examines not the relationship between the nation and the states but that between the states and the cities. His …

Interstate Corporate Income Taxation-Recent Revolutions And A Modern Response, Eugene F. Corrigan

Vanderbilt Law Review

In recent years significant technical advances have enabled large corporations to sell into states from great distances and with a minimum of contact in those states. Nevertheless, the states and their political subdivisions are confronted with the claims of corporations that jurisdictional barriers to corporate income taxes should be raised, that improved enforcement techniques should be prohibited, and that certain classes of income should be immunized completely from state taxation. These revolutionary technical advances have created both major tax administration problems and tax administration opportunities for the states. Some of the latter, however, remain unexploited. This article examines the ramifications …

Out-Of-State Collection Of State And Local Taxes, Robert A. Leflar

Vanderbilt Law Review

Validly due and payable state and local taxes often go unpaid because the absent tax debtor chooses not to pay voluntarily and has no assets from which the tax debt can be collected in the taxing state. He often has assets elsewhere, but they may be difficult for the tax creditor to discover and to reach.

Only a few years ago out-of-state assets could not be reached at all, nor could the tax debtor himself be reached except within the taxing state, in its own courts, and by its own legal processes. Formerly, no state would use its law or …

State Taxation Of Interstate Business-Looking Toward Federal-State Cooperation, Joseph W. Mathews Jr.

Vanderbilt Law Review

This note will review the historical setting of state taxation of interstate commerce and examine the problems created by the diversity of state tax laws. It will further discuss the two different approaches toward solving these problems, investigate the constitutional issues involved in the proposed solutions, analyze their inadequacy, and recommend a federal-state cooperative approach.

An Evaluation Of Municipal Income Taxation, Joe G. Davis, Jr., Arthur J. Ranson, Iii

Vanderbilt Law Review

In order to delineate the perspective of this Note, two observations must be made. First, the term "municipal income tax" encompasses many variations from city to city in the legal nomenclature used to identify the tax. For example, "wage taxes," "payroll taxes,""earnings taxes," and "occupational license taxes" are widely used terms which simply disguise the presence of a municipal income tax. Secondly, in relation to the traditional municipal property and sales taxes, the municipal income tax is normally supplemental rather than substitutional. An increased utilization of the municipal income tax, however, should partially relieve the burden now imposed on these …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Civil Rights--Federal Criminal Code Protects Rights Secured by Fourteenth Amendment

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Civil Rights--Removal--Strict Interpretation of Federal Removal Statute Affirmed

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Labor Law--Judicial Review of Arbitrator's Authority To Imply Contractual Condition

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Labor Relations--Federal Preemption of Defamation Suits Arising in Course of Organizational Campaign

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State and Local Taxation--Economic Exploitation Sufficient Connection To Require Non-Resident Seller To Collect Use Tax

State And Local Taxation -- 1961 Tennessee Survey, Paul J. Hartman

Vanderbilt Law Review

Not many cases involving state taxes have been decided by the Tennessee courts during the period covered by this survey. Action taken in the halls of Congress, however, has the potential of a major revamping of the taxing power of all state and local governments.

State Taxation Of Corporate Income From A Multistate Business, Paul J. Hartman

Vanderbilt Law Review

So long as we have a federal system of government, a continuing problem, and certainly one of the most pressing, is that of an effective coordination of taxes. That problem has achieved paramount impor- tance in late years. Because of new and expanding conceptions as to what governments should do for people, our state governments are continually confronted with ever-increasing demands that they provide additional governmental functions and supply more governmental services. The resulting increase in governmental activities and extension of benefits mean urgent needs for additional revenue. As prices have spiraled under the increasing pressure of meeting our domestic …

State And Local Taxation, Paul J. Hartman

Vanderbilt Law Review

That the field of state and local taxation is bedoming much more important, as well as increasingly active, is shown by a number of recent significant major developments that are of interest and concern to taxpayers and their counsel everywhere. Ten state tax cases are already on the United States Supreme Court docket for consideration during the Term commencing October 5, 1959.' During the past term at least a half dozen important state tax cases were decided by the Supreme Court, including the epochal Northwestern-Stockham decision, which threw much of the legal profession, as well as many taxpayers, into a …

The Measure Of Sales Taxes, Arthur H. Northrup

Vanderbilt Law Review

The measure of the tax is as significant a problem in sales taxation as is assessment in ad valorem property taxation or the determination of net income for income taxation. It is the base for taxation.

Sales taxes are creations of state statutes. The appendix presents a general summary of these statutes to show their provisions. Separate state excise taxes on cigarettes or spirits are not included within the scope of this paper, nor are taxes on selling, storing or distributing motor fuels or oils. These excises present special problems, as do separate taxes on extraction, oil drilling and mining. …

Sales And Use Taxes As Affected By Federal Governmental Immunity, Milton P. Rice, R. Wayne Estes

Vanderbilt Law Review

Sales and use taxes, since their advent in the early 1930's as significant state revenue producing measures have, like all other state levies, found, themselves subject to certain restrictions imposed by the Constitution of the United States. While the constitutional inhibition of greatest significance for most persons subject to these taxes has probably been the one posed by the commerce clause, or its first cousin the due process clause, an obstacle of no mean proportion to the states has been one not expressly mentioned or even alluded to in the Federal Constitution,' yet this barrier is as much a part …

Tax Problems Presented By The Tennessee Constitution, Eugene L. Parker Jr.

Vanderbilt Law Review

Although the North Carolina Constitution of 1776 had no specific tax provision, the draftsmen of Tennessee's Constitution of 1796 initiated a standard which reflected the creed of the frontier. These pioneers thought that every free man should contribute something to the support of the government and those with more ability should contribute more. The ability of the citizen was measured by the quantity of land and the number of slaves, which provided roughly a fair differentiation. Everyone had a similar log cabin; one lot in a settlement was worth about the same as another; one cleared acre was the equal …