Daily Tax Update - May 18, 2015: Supreme Court Rules Maryland State Income Tax Violates Dormant Commerce Clause

Supreme Court Rules Maryland State Income Tax Violates Dormant Commerce Clause:  In a 5-4 decision, the United States Supreme Court ruled in Comptroller of Treasury of Maryland v. Wynne that Maryland’s state income tax system violates the dormant commerce clause because it fails the internal consistency test because, if every State adopted Maryland’s tax structure, interstate commerce would be taxed at a higher rate than intrastate commerce.  The tax impermissibly operates as a tariff.  

IRS Issues Applicable Federal Interest Rates for June:  The IRS issued Revenue Ruling 2015-14, which provides the monthly rates for certain debt instruments.  The short-term applicable federal rate remains at .43 percent, the mid-term rate increased to 1.60 percent, and the long-term rate increased to 2.50 percent.  The ruling also includes the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate.