GOVERNMENT: Victory for the States

In the field of state taxation, U.S. courts have gradually recognized that the states need revenue from whatever place they can get it. Last week, in two major decisions, the U.S. Supreme Court affirmed the broad power of states in taxing business enterprises. The court ruled that a state may:

¶ Tax an out-of-state corporation on the portion of its income earned within the state, even though the corporation's activities are exclusively "interstate commerce."

¶Levy a property tax on raw materials imported from foreign countries by a manufacturer and stored for immediate use.

The ruling means that such states as Georgia and...

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