Law Center Search Results

The NAM filed a brief urging the U.S. Supreme Court to review a circuit court split over whether it is permissible for states and municipalities to levy taxes on natural gas while the gas remains in transit. This litigation stems from a Supreme Court of Texas holding which levied taxes on large quantities of temporarily stored natural gas while in interstate transit. This issue is important because imposing new state and local taxes on natural gas will harm both interstate commerce and natural gas consumers. The NAM’s brief argued that taxes on natural gas while it is in transit violate the “in-transit” principle of the Commerce Clause which mandates that goods that remain in the transit process cannot be locally taxed. Unfortunately, the Supreme Court denied the petition for certiorari leaving consumers to bear the burden of high costs.