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Article: States triumphs over Federal government in high court case. (state refunds of unlawfully collected taxes)
- Article from:
- The Bond Buyer
- Article date:
- April 27, 1993
- Author:
CopyrightCOPYRIGHT 1993 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON - The federal government must follow state procedures when filing for refunds of state taxes that it asserts were unlawfully collected from federal contractors, a unanimous Supreme Court ruled yesterday.
The opinion, delivered by Justice Sandra Day O'Connor, is a sweeping victory for states that allows them to limit their exposure to tax refunds by undercutting the federal government's ability to avoid state refund procedures.
In the case, United States v. California, the federal government claimed it had a common law right to pursue a refund in federal court instead of subjecting itself to state refund procedures. The government based its ...