U.S. Supreme Court vacates and remands Texas decision striking down tax on domestically owned cargo containers used in international shipping.On Mar. 8, 1993, the U.S. Supreme Court vacated the Texas Court of Appeals' decision in Harris County Harris County is the name of several counties in the United States:
The term ad valorem is derived from the Latin ad valentiam, meaning "to the value." It is commonly applied to a tax imposed on the value of property. property tax on shipping containers used in international commerce owned by a domestic corporation violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. the Foreign Commerce Clause of the U.S. Constitution because of the substantial risk of multiple international taxation. The Supreme Court directed the Texas Court of Appeals to consider the Court's recent holding in Itel Containers International Corporation, 113 S. Ct. 1095 (1993). In Itel, the Supreme Court upheld the validity of the Tennessee sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. on leases of containers owned by a domestic company and used exclusively in international commerce. The Court easily concluded that there was no substantial risk of international multiple taxation because the sales tax at issue was imposed on a discrete transaction occurring within the state. Moreover, the state in Itel provided a credit against its own tax for any tax paid in another jurisdiction on the same transaction. The issue in Transamerica Container is whether the ad valorem property tax on domestically owned international cargo containers, despite apportionment The process by which legislative seats are distributed among units entitled to representation; determination of the number of representatives that a state, county, or other subdivision may send to a legislative body. The U.S. , creates a substantial or enhanced risk of international multiple taxation in violation of the Foreign Commerce Clause as interpreted by the U.S. Supreme Court in Japan Line, Ltd. v. County of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , 441 US 434 (1979). In Japan Line, the Court struck down, on Foreign Commerce Clause grounds, a property tax on foreign-owned international cargo containers; the tax created a substantial risk of international multiple taxation and prevented the Federal government from "speaking with one voice when regulating commercial relations with foreign governments." The Japan Line Court reserved decision on the issue of domestically owned containers used in international commerce. Although the taxpayer in Transamerica Container has conceded the speaking with one voice issue, it contends that there is a substantial risk of international multiple taxation. Arguably ar·gu·a·ble adj. 1. Open to argument: an arguable question, still unresolved. 2. That can be argued plausibly; defensible in argument: three arguable points of law. , Itel should not compel Compel - COMpute ParallEL the Texas Court of Appeals to uphold the Texas levy. Itel involved a transaction-based tax with a credit provision designed to eliminate multiple taxation. Transamerica Container, in contrast, involves a property tax on movable personal property. |
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