State Court Must Rule On Gas Tax Dispute: High Court

Law360, New York (June 1, 2010, 2:58 PM EDT) -- The U.S. Supreme Court has held that the doctrine of comity requires a taxpayer's suit alleging discriminatory state taxation to proceed in state court, reversing a federal appeals court's ruling in an ongoing dispute between several natural gas providers and Ohio's tax commissioner.

In a unanimous opinion issued Tuesday, Justice Ruth Bader Ginsburg wrote that the comity doctrine, which precludes federal courts from hearing claims that relate directly to state taxation, barred three independent gas marketers from filing a federal complaint over tax exemptions given to...
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