Regency Transportation Inc operates a freight business throu

Regency Transportation, Inc., operates a freight business throughout the eastern United States. Regency maintains its corporate headquarters, four warehouses, and a maintenance facility and terminal location for repairing and storing vehicles in Massachusetts. All of the vehicles in Regency’s fleet were bought in other states. Massachusetts imposes a use tax on all taxpayers subject to its jurisdiction, including those that do business in interstate commerce, as Regency does. When Massachusetts imposed the tax on the purchase price of each tractor and trailer in Regency’s fleet, the trucking firm challenged the assessment as discriminatory under the commerce clause. 1. Do you agree that this criterion is an appropriate test in considering the Commerce Clause? 2. Whether you agree with this test or not, was it applied properly in this case?

Solution

Regency corporation was of the pinion that it should be exempt from taxes with relation to unconstitutional section of language 830 code. This exempts liability to be attached to the taxpayer who must have already paid taxes to the state or territory wherein the transfer takes place. Regency is of the opinion that the language exempts them as the tax which is paid to the State and it need not be paid wherein the transfer or sale has not occurred.

According to Regency there is assessment of the carrier use twice related to tax according to the language that places eligibility pertaining to the exemption and makes the scheme internally inconsistent.

Regency ignores the emotion of catch all which was given by 830 code mass which places exemption on the Massachusetts.

The section of the Interstate commerce is placed exemption on the use of Massachusetts tax only of the tax use violation of test if united states Supreme Court applies it.

Regency is wrong here as the hypothetical imposition would not be correct and it would most necessarily violate the test of complete auto with relation to the potential of multiple taxes.

The in-State activity at issue is Regency\'s tax liability is reflected in the in state activity which is storage and its use. There is taxable event triggered by the in state business activity.