The Dormant Commerce Clause, or Negative Commerce Clause, in American constitutional law, is a legal doctrine that courts in the United States have inferred from the Commerce Clause in Article I of the US Constitution. The primary focus of the doctrine is barring state protectionism. The Dormant Commerce Clause is used to prohibit state legislation that discriminates against interstate or international commerce. Courts first determine whether a state regulation discriminates on its face against interstate commerce or whether it has the purpose or effect of discriminating against interstate commerce. If the statute is discriminatory, the state has the burden to justify both the local benefits flowing from the statute and to show the state has no other means of advancing the legitimate local purpose.
Pollock v. Farmers' Loan & Trust Company, 157 U.S. 429 (1895), affirmed on rehearing, 158 U.S. 601 (1895), was a landmark case of the Supreme Court of the United States. In a 5-to-4 decision, the Supreme Court struck down the income tax imposed by the Wilson–Gorman Tariff Act for being an unapportioned direct tax. The decision was superseded in 1913 by the Sixteenth Amendment to the United States Constitution, which allows Congress to levy income taxes without apportioning them among the states.
Kassel v. Consolidated Freightways Corp., 450 U.S. 662 (1981), was a United States Supreme Court case involving the application of the Dormant Commerce Clause to an Iowa state statute restricting the length of tractor-trailers.
Nebbia v. New York, 291 U.S. 502 (1934), was a case in which the Supreme Court of the United States decided that New York State could regulate the price of milk for dairy farmers, dealers, and retailers.
DaimlerChrysler Corp. v. Cuno, 547 U.S. 332 (2006), is a United States Supreme Court case involving the standing of taxpayers to challenge state tax laws in federal court. The Court unanimously ruled that state taxpayers did not have standing under Article III of the United States Constitution to challenge state tax or spending decisions simply by virtue of their status as taxpayers. Chief Justice John Roberts delivered the majority opinion, which was joined by all of the justices except for Ruth Bader Ginsburg, who concurred separately.
C&A Carbone, Inc. v. Town of Clarkstown, New York, 511 U.S. 383 (1994), was a case before the United States Supreme Court in which the plaintiff, a private recycler with business in Clarkstown, New York, sought to ship its non-recyclable waste to cheaper waste processors out-of-state. Clarkstown opposed the move, and the company then brought suit, raising the unconstitutionality of Clarkstown's "flow control ordinance," which required solid wastes that were not recyclable or hazardous to be deposited at a particular private company's transfer facility. The ordinance involved fees that were above market rates. The Supreme Court sided with the plaintiff, concluding that Clarkstown's ordinance violated the Dormant Commerce Clause.
Texas Monthly v. Bullock, 489 U.S. 1 (1989), was a case brought before the US Supreme Court in November 1988. The case was to test the legality of a Texas statute that exempted religious publications from paying state sales tax.
Southern Pacific Company v. Arizona, 325 U.S. 761 (1945), was a United States Supreme Court case in which the Court held that the Arizona Train Limit Law of 1912, which prohibited passenger trains with more than fourteen cars and prohibited freight trains with more than seventy cars, placed an unconstitutional burden on interstate commerce. The Court held that the law imposed a burden far greater than necessary to achieve Arizona's legitimate interest in lowering the rate of train accidents. This case is part of the Court's so-called negative commerce clause jurisprudence.
Smith v. Turner; Norris v. Boston, 48 U.S. 283 (1849), were two similar cases, argued together before the United States Supreme Court, which decided 5-4 that states do not have the right to impose a tax that is determined by the number of passengers of a designated category on board a ship and/or disembarking into the State. The cases are sometimes called the Passenger Case or Passenger Cases.
United Haulers Ass'n v. Oneida-Herkimer Solid Waste Management Authority, 550 U.S. 330 (2007), was a United States Supreme Court case about interstate commerce. Chief Justice John Roberts wrote the opinion of the Court, holding that a New York state ordinance forcing private waste management companies to deliver waste to a public facility did not discriminate against interstate commerce. Justice Samuel Alito wrote a dissent.
Minnesota v. Clover Leaf Creamery Co., 449 U.S. 456 (1981), was a United States Supreme Court case which found no violation of the equal protection or commerce clauses in a Minnesota state statute banning retail sale of milk in plastic nonreturnable, nonrefillable containers, but permitting such sale in other nonreturnable, nonrefillable containers.
Bibb v. Navajo Freight Lines, Inc., 359 U.S. 520 (1959), is a United States Supreme Court case in which the Court held that the Illinois law requiring trucks to have unique mudguards was unconstitutional under the Commerce clause.
Pike v. Bruce Church, Inc., 397 U.S. 137 (1970), was a case in which the Supreme Court of the United States held that power of states to pass laws interfering with interstate commerce is limited when the law poses an undue burden on businesses.
Baldwin v. G. A. F. Seelig, Inc., 294 U.S. 511 (1935), was a United States Supreme Court case which held that a state may not regulate intrastate prices by prohibiting the importation of less expensive goods in interstate commerce. It established the principle that one state, in its dealings with another, cannot place itself in economic isolation.
Arizona v. New Mexico, 425 U.S. 794 (1976), is an opinion from the United States Supreme Court which denied a motion from the State of Arizona seeking authorization to file suit against the State of New Mexico by invoking the original jurisdiction of the court.
A herdshare is a contractual arrangement between a farmer and an owner of livestock - the shareholder or member - through which the shareholder is able to obtain raw milk, meat, offal and other profits of the livestock proportionate to the shareholder's interest in the herd. Herdshares include cowshares, goatshares, and sheepshares, and are sometime referred to as "farmshares" or "dairy-shares," although the term "farmshare" can also refer to an entire farm held in joint ownership.
Comptroller of the Treasury of Maryland v. Wynne, 575 U.S. 542 (2015), is a 2015 U.S. Supreme Court decision which applied the dormant Commerce Clause doctrine to Maryland's personal income tax scheme and found that the failure to provide a full credit for income taxes paid to other states was unconstitutional.
H.P. Hood & Sons v. Du Mond, 336 U.S. 525 (1949), was a United States Supreme Court case in which the Court held a New York protectionist law which prohibits licensure to suppliers who are alleged will create “destructive competition” in the local market to violate the Commerce Clause of the U.S. Constitution.
Article I, § 10, clause 2 of the United States Constitution, known as the Import-Export Clause, prevents the states, without the consent of Congress, from imposing tariffs on imports and exports above what is necessary for their inspection laws and secures for the federal government the revenues from all tariffs on imports and exports. Several nineteenth century Supreme Court cases applied this clause to duties and imposts on interstate imports and exports. In 1869, the United States Supreme Court ruled that the Import-Export Clause only applied to imports and exports with foreign nations and did not apply to imports and exports with other states, although this interpretation has been questioned by modern legal scholars.
South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018), was a United States Supreme Court case in which the court held by a 5–4 majority that states may charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state. The decision overturned Quill Corp. v. North Dakota (1992), which had held that the Dormant Commerce Clause barred states from compelling retailers to collect sales or use taxes in connection with mail order or Internet sales made to their residents unless those retailers have a physical presence in the taxing state.
