Find Court Cases > U.S. Steel Corp. v. Multistate Tax Comm.

U.S. Steel Corp. v. Multistate Tax Comm.

Case Date: 10/11/1977
Docket No: none

Facts of the Case 

In 1972, twenty one states were members of the Multistate Tax Compact, a body formed by states to assist them in formulating and administering tax law relating to multistate businesses. The Compact had not received congressional approval.

Question 

Did the formation of this group violate the the Compact Clause of Article I?

Argument U.S. Steel Corp. v. Multistate Tax Comm. - Oral ArgumentFull Transcript Text  Download MP3U.S. Steel Corp. v. Multistate Tax Comm. - Opinion Announcement  Download MP3 Conclusion  Decision: 7 votes for Multistate Tax Comm., 2 vote(s) against Legal provision: Article 1, Section 10, Paragraph 3: Compact Clause

The Court found no constitutional violation. The Compact did not enhance state political power at the expense of the United States; it not confer to states powers which they did not already possess; it did not involve any delegation of state power to the Commission. Furthermore, argued Justice Powell, each state was free to withdraw from the group at any time.