(COLUMBUS, Ohio) – For the third time in 2009, the United States Supreme Court today agreed to hear an appeal as requested by the office of Ohio Attorney General Richard Cordray. Cordray’s office sought review of a lower court’s decision concerning jurisdictional matters in the taxation case of Levin v. Commerce Energy.
“We believe that this case should be decided in state courts rather than in the federal courts, and we’ve therefore asked the U.S. Supreme Court to answer this question of jurisdiction,” said Attorney General Cordray. “Some previous decisions in these types of cases provide conflicting answers, which means clarification of this matter will be valuable to state governments as well as to businesses which operate in our states. We’re pleased that the high court has agreed to offer its review on several cases from our office this year.”
The respondent in the case, Commerce Energy Incorporated, is a retail natural gas supplier based outside of Ohio. This company alleges that Ohio’s tax system is discriminatory because natural gas distribution companies based within Ohio benefit from certain tax exemptions and exclusions from which Commerce Energy does not benefit. This case in particular will be a test of whether either the federal Tax Injunction Act or the separate legal concept of “comity” – which commands respect for state governments – permit lawsuits in federal court that arguably would intrude on state tax systems.
The Supreme Court will hear oral arguments in this case in the spring of 2010. To read the petition requesting the Court’s review, go to www.OhioAttorneyGeneral/gov/CommerceEnergyPetition.