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US Court Rules Oil Tanker Tax Is 'Unconstitutional'

by Mike Godfrey, for LawAndTax-News.com, Washington

17 June 2009

Alaskan city Valdez is facing the prospect of having to return millions of dollars worth of tax revenues after the US Supreme Court ruled its oil tanker tax to be 'unconstitutional.'

In making its decision, the court's Justice Stephen Breyer argued that the tax is a violation of the Constitution's 'tonnage clause', which aims to promote free trade.

Over the past 9 years, the tax has funded the city's government services and schools.

The exact sum to be repaid has not yet been clarified.

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