WASHINGTON —The Supreme Court on Monday struck down as unconstitutional a Maryland tax that has the effect of double-taxing income residents earn in other states.
Maryland officials say the 5-4 ruling means the loss of hundreds of millions of dollars in tax revenues. It also could affect similar tax laws in nearly 5,000 local jurisdictions in other states, including New York, Indiana, Pennsylvania and Ohio.
The justices agreed with a lower court that the tax is invalid because it discourages Maryland residents from earning money outside the state.
The unusual split wasn’t along ideological lines. Writing for the court, Justice Samuel Alito said the tax “is inherently discriminatory” under the Constitution’s Commerce Clause. The court has interpreted that provision to ban states from passing laws that burden interstate commerce.
Alito was joined by Chief Justice John Roberts and Justices Anthony Kennedy, Stephen Breyer and Sonia Sotomayor.
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