DaimlerChrysler Corp. v. Cuno

547 U.S. 332 (2006)

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DaimlerChrysler Corp. v. Cuno

United States Supreme Court
547 U.S. 332 (2006)

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Facts

DaimlerChrysler Corp. (defendant) manufactured Jeep automobiles in Toledo, Ohio. DaimlerChrysler entered into a contract with the City of Toledo and the State of Ohio in 1998 in which DaimlerChrysler agreed to expand its Jeep assembly plant. In exchange, the city, with the consent of the relevant school districts, agreed to waive property tax, and the state granted a credit against the state franchise tax. A group of taxpayers (taxpayers) (plaintiffs) filed a lawsuit, alleging that the waiver and credit violated the Commerce Clause and that the taxpayers’ tax burdens were increased due to the waiver and credit. The trial court determined that the taxpayers did have standing but that the waiver and credit were constitutional. The taxpayers appealed, and the Sixth Circuit Court of Appeals held that the franchise credit violated the Commerce Clause but that the property-tax waiver was constitutional. DaimlerChrysler petitioned the United States Supreme Court for review.

Rule of Law

Issue

Holding and Reasoning (Roberts, C.J.)

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