Date: October 19, 2007
Source: News Room
The Supreme Court will hear oral arguments in Davis v. Kentucky on Nov. 5. At issue for the court is whether it will reverse the lower courts decision that preferential state tax treatment of municipal bonds violates the commerce clause. From a purely legal perspective the court should uphold the decision. However, most experts agree that the court will probably reverse the decision out of reluctance to upset the state bond markets. The court could site its United Haulers v. Oneida-Herkimer Solid Waste Management Authority case as precedent for allowing discriminatory practices by public entities.
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