Loudoun County, Virginia v. Dulles Duty Free, LLC

The Constitution’s Import-Export Clause prohibits states from “lay[ing] any Imposts or Duties on Imports or Exports.” U.S. Const. art. I, § 10, cl. 2. This Court’s “modern Import-Export test was first announced in” Michelin Tire Corp. v. Wages, 423 U.S. 276 (1976), in which the Court adopted an ImportExport Clause analysis focused on the “main concerns” leading to adoption of the Clause. Itel Containers Int’l Corp. v. Huddleston, 507 U.S. 60, 76 (1993). Notwithstanding Michelin, the Supreme Court of Virginia in the decision below, along with other state courts of last resort and two federal courts of appeals, continue to employ the formalistic test of Richfield Oil Corp. v. State Bd. of Equalization, 329 U.S. 69 (1946), to ascertain whether a tax affecting exports violates the Import-Export Clause. These decisions relying on Richfield Oil conflict with Michelin and subsequent decisions by this Court, as well as with decisions by other state and federal courts. This Court has repeatedly deferred addressing Richfield Oil’s continuing vitality, awaiting a case presenting that issue. The Questions Presented are: 1. Should the validity under the Import-Export Clause of a non-discriminatory local business license tax calculated on the basis of gross receipts be evaluated using this Court’s approach in Michelin Tire Corp. v. Wages, 423 U.S. 276 (1976), or in Richfield Oil Corp. v. State Bd. of Equalization, 329 U.S. 69 (1946)?