Supreme Court of the United States · Official docket →
Washington Bankers Association, et al. v. Washington, et al.
Paid petition · Supreme Court of Washington, No. 98760-2 · judgment September 30, 2021
Before the decision, well below the 4.1% base rate, with no standout signals pointing toward a grant.
Question presented
The State of Washington has enacted a major surtax—an increase of nearly 70%—on the gross receipts of certain financial institutions: namely, any such institution that is part of a consolidated group earning at least $1 billion in net income anywhere in the world. Before enacting the surtax, the legislature verified that no in-state bank would have to pay it, and the legislature chose a trigger for the surtax that captures only banks that do large volumes of business outside the state. The result leaves little to the imagination: 98% of financial institutions subject to the surtax have their principal places of business outside Washington State, and 99.74% of surtax revenue comes from entities based out of state. All entities paying the surtax are subject to it only because they are affiliated with extensive interstate banking networks. Nonetheless, the Washington Supreme Court upheld the surtax under the dormant Commerce Clause. In doing so, it deepened acknowledged division in the lower courts. Numerous courts have properly held that regulating on the basis of a feature that is a proxy for being based out of state, or for participating in interstate commerce, amounts to impermissible discrimination against interstate commerce. Other courts disagree. The question presented is: Does a law that is triggered by a proxy for participating in interstate commerce and that burdens outof-state entities almost exclusively violate the dormant Commerce Clause?
Counsel of record
For petitioner
Eric Alan Shumsky
Orrick, Herrington & Sutcliffe LLP
For respondent
Noah Guzzo Purcell
Office of the Attorney General
Proceedings
- Jun 13 2022Motion for leave to file amicus brief filed by Western Bankers Association GRANTED.
- Jun 13 2022Petition DENIED.
- May 24 2022DISTRIBUTED for Conference of 6/9/2022.
- May 20 2022Reply of petitioners Washington Bankers Association, et al. filed. (Distributed)
- May 04 2022Brief of respondents Washington, et al. in opposition filed.
- Apr 04 2022Brief amici curiae of Washington State Tax Practitioners filed.
- Mar 08 2022Motion to extend the time to file a response is granted and the time is extended to and including May 4, 2022.
- Mar 07 2022Motion to extend the time to file a response from April 4, 2022 to May 4, 2022, submitted to The Clerk.
- Mar 03 2022Response Requested. (Due April 4, 2022)
- Mar 03 2022Brief amicus curiae of Council on State Taxation filed.
- Mar 03 2022Brief amicus curiae of Institute for Professionals in Taxation filed.
- Mar 03 2022Brief amici curiae of Chamber of Commerce of the United States of America and Bank Policy Institute filed.
- Mar 02 2022DISTRIBUTED for Conference of 3/18/2022.
- Mar 02 2022Motion for leave to file amicus brief filed by Western Bankers Association.
- Feb 25 2022Waiver of right of respondent Washington, et al. to respond filed.
- Jan 28 2022Petition for a writ of certiorari filed. (Response due March 3, 2022)
- Nov 24 2021Application (21A181) granted by Justice Kagan extending the time to file until January 28, 2022.
- Nov 22 2021Application (21A181) to extend the time to file a petition for a writ of certiorari from December 29, 2021 to January 28, 2022, submitted to Justice Kagan.