Friday, September 17, 2004

Ohio tax incentive program

Last week we posted a note about Ohio's tax incentive program having been declared unconstitutional by the U.S. 6th. Circuit Court of Appeals. The topic is up once again with an article on Law.com this morning.

"If the decision stands," said Hollie Spade, executive director of the Office of Legal Services in the Kentucky Cabinet for Economic Development, " it certainly provides precedent for challenging several of Kentucky's programs." Other states are taking notice, too.

Critics of the 6th. Circuit's decision say such distinctions could be swept away by the force of the court's main ruling.... "If this is the law (and I don't believe it can be)," Professor Edward Zelinsky of Yeshiva University, Cardozo School of lLaw, "virtually every state tax incentive is challengeable on dormant commerce clause grounds."

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