Wednesday, January 16, 2008, 3:29 PM

4th Circuit Refuses to Delve Into N.C. Tax

The Fourth Circuit, in DIRECTV, Inc. v. Tolson, refused last week to delve into the arena of NC state taxation. DIRECTV and Echostar Satellite, LLC brought suit, arguing that a state taxation system was unconstitutional. The Fourth Circuit affirmed the dismissal of the suit and held that federal courts won't enjoin states from levying taxes, won't alter the state's allocation of taxation authority, and that suits alleging constitutional violations due to state taxation are barred in federal court so long as state courts also provide adequate remedies.

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