U.S. Supreme Court won't hear challenge to Hilton Head business tax

Discussion in 'Judicial Interpretation' started by Dante, Jan 15, 2015.

  1. Dante
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    Dante On leave Supporting Member

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    U.S. Supreme Court won't hear challenge to Hilton Head business tax

    By DAN BURLEY
    dburley@islandpacket.comJanuary 15, 2015

    The U.S. Supreme Court won't hear a plea from a Hilton Head Island company challenging how the town collects business-license fees.

    The high court on Monday denied a request to review Kigre Inc.'s appeal of a ruling in June that upheld the town's practice. The court did not provide a reason for the decision.

    Last summer, the S.C. Supreme Court ruled the town does not violate the U.S. Constitution's interstate commerce clause by charging Kigre a fee based upon its revenue. Kigre, a laser-component manufacturer on Marshland Road, has argued it should not have to pay the full amount since most of its revenue is from out-of-state customers.​
     
  2. Dante
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    Dante On leave Supporting Member

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    a year ago (now a 9 year battle):
    Kigre asks US Supreme Court to hear Hilton Head dispute

    The S.C. Supreme Court ruled the town does not violate the U.S. Constitution's interstate commerce clause by charging Kigre a fee based upon its revenue. Kigre, a laser-component manufacturer on Marshland Road, has argued it should not have to pay the full amount since most of its revenue is from out-of-state customers.

    "It's a question of fairness," Kigre attorney Tom Taylor said. "The town is overreaching."

    If Kigre makes money in Texas, for example, "the town simply doesn't have jurisdiction to reach our revenue in Texas," Taylor said.

    Town officials have defended the practice, citing previous state court rulings that affirmed municipalities can impose the fees -- no matter where the sales occur.​
     
  3. Ringel05
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    Ringel05 Diamond Member

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    I would suggest Kigre find a new location to move to unless they enjoy shelling out money on fruitless, previously decided lawsuits. :dunno:
     
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  4. Dante
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    Dante On leave Supporting Member

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    They've threatened that, but methinks Hilton Head having such cache...

    They've been paying the taxes and don't seem to be hurting. Race to the bottom. Tell them to move to Somalia
     
  5. Mr. H.
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    Mr. H. Diamond Member

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    Sounds like a severance tax.
     
  6. Dante
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    Dante On leave Supporting Member

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    court after court for 9 years didn't think so. It's within the powers of a city to tax this way
     

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