Class-action muni-bond case affirmed
As the U.S. Supreme Court considers whether to uphold a Kentucky court’s ruling that taxing interest on out-of-state municipal bonds is unconstitutional, North Carolina’s highest court has affirmed class-action status in a similar case.
As the U.S. Supreme Court considers whether to uphold a Kentucky court’s ruling that taxing interest on out-of-state municipal bonds is unconstitutional, North Carolina’s highest court has affirmed class-action status in a similar case. Last month, that state’s Supreme Court justices upheld a lower court’s decision that all taxpayers who paid North Carolina taxes on interest from out-of-state government bonds should be included in a lawsuit challenging the practice. The U.S. Supreme Court, meanwhile, heard arguments in Department of Revenue of Kentucky v. Davis in November and is expected to issue an opinion by June. For a look at the transcripts from those proceedings, visit www.supremecourtus.gov/oral_arguments/argument_transcripts/06-666.pdf.
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