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Chapter 4, Problem 8BCP
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Case summary: The company RTI has its corporate headquarters, four warehouses, maintenance and storing facility in Massachusetts, and deals in freight business on the U.S. Eastern Coast mostly. All the freight carriers of RTI were purchased from other states. The State of Massachusetts levies a use tax on all persons within its jurisdiction, including persons doing interstate business. The Massachusetts state further levies a tax on the purchase price of individual carriers, including trucks and trailers of RTI.

To explain:The fundamental aspects of commerce clause when a state law has implications on interstate trade.

Summary Introduction

Case summary: The company RTI has its corporate headquarters, four warehouses, maintenance and storing facility in Massachusetts, and deals in freight business on the U.S. Eastern Coast mostly. All the freight carriers of RTI were purchased from other states. The State of Massachusetts levies a use tax on all persons within its jurisdiction, including persons doing interstate business. The Massachusetts state further levies a tax on the purchase price of individual carriers, including trucks and trailers of the company RTI.

To explain:The use tax levied by Massachusetts on the company RTI is justified under the commerce clause.

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