Fulton Corporation v. Faulkner (1995)
- Docket
- 94-1239
- Decided
- 1995-01-01
Summary
Question: Does North Carolina's "intangibles tax" on a fraction of the value of corporate stock owned by North Carolina residents inversely proportional to the corporation's exposure to the State's income tax violate the Federal Commerce Clause? Conclusion: Yes. In a unanimous opinion delivered by Justice David H. Souter, the Court held that North Carolina's intangibles tax discriminates against interstate commerce in violation of the dormant Commerce Clause. Justice Souter reasoned that the tax discriminated on face against interstate commerce by taxing stock only to the extent that its issuing corporation participated in interstate commerce. "North Carolina's intangibles tax facially discriminates against interstate commerce, it fails justification as a valid compensatory tax, and, accordingly, it cannot stand," wrote Justice Souter. Chief Justice William H. Rehnquist wrote a concurring opinion.