Article: Refund of Va. Taxes to U.S. Retirees Still Undecided;Supreme Court Ruling on Georgia Case Skirts Issue of $440 Million Collected by Richmond

A Supreme Court ruling yesterday could force Georgia to refund taxes that were collected unconstitutionally, but left unclear whether Virginia must refund $440 million to thousands of retired federal workers whose pensions were illegally taxed.

State officials and a lawyer for Virginia pensioners agreed that a more crucial point in the case will come when the U.S. high court considers whether to review a March Virginia Supreme Court decision.

The Virginia court did not require the state to pay refunds.

Perhaps as early as next week, the U.S. Supreme Court could reject the petition, send it back to the state for another hearing, or decide to hold its own hearing on the case.

"States ...

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