Supreme Court Denies Review of Cuno Property Tax Exemption

May 24, 2006

Last week, we blogged about the Supreme Court’s unanimous ruling in Daimler Chrysler v. Cuno. That ruling concerned the constitutionality of Ohio’s investment tax credit (ITC), with the Court ruling that the plaintiffs did not have standing to bring their claim in federal court.

But the plaintiffs also tried to challenge the constitutionality of an Ohio property tax exemption, and both lower federal courts ruled that the exemption was constitutional. The Sixth Circuit Court of Appeals actually split its ruling, saying that the ITC was unconstitutional but that the property tax exemption passed muster. Thus, both Daimler Chrysler and Cuno petitioned the Supreme Court to review the lower court ruling.

Until this week, the Court had only acted on DaimlerChrysler’s petition (ultimately throwing out the case last week). But now the Court has refused to review the property tax exemption ruling, so the Sixth Circuit’s decison on the exemption will stand.

What does this mean? Well, it means that while the Court vacated (erased) the opinion of the Sixth Circuit on the ITC, the Sixth Circuit’s ruling on the property exemption will remain good law.


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