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ARTICLE · 17 JUNE 2009

Supreme Court Decision Alert - June 15, 2009

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Today the Supreme Court issued a decision, described below, of interest to the business community. Polar Tankers, Inc. v. City of Valdez, Alaska, No. 08-310 (previously discussed in the November 3, 2008 Docket Report).

United StatesLitigation, Mediation & Arbitration

Originally published June 15, 2009

Keywords: Polar Tankers, Inc. v City of Valdez, Alaska, Tonnage Clause, Trans-Alaska Pipeline System, personal property tax,  

Today the Supreme Court issued a decision, described below, of interest to the business community.

Polar Tankers, Inc. v. City of Valdez, Alaska, No. 08-310 (previously discussed in the November 3, 2008 Docket Report).

The Constitution's Tonnage Clause provides that "[n]o State shall, without the Consent of Congress, lay any Duty of Tonnage."  Today, the Supreme Court ruled that a personal property tax levied only against vessels violates that proscription.

The tax invalidated by today's decision was imposed by the City of Valdez, Alaska, on certain vessels exceeding 95 feet in length.  The Port of Valdez is the southern terminus of the Trans-Alaska Pipeline System, so the tax fell principally on tankers transporting crude oil from Valdez to the continental United States.

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