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| Maryland v. Louisiana | |
|---|---|
 Supreme Court of the United States | |
| Argued January 19, 1981 Decided May 26, 1981 | |
| Full case name | Maryland v. Louisiana |
| Citations | 451 U.S. 725 (more) |
| Argument | Oral argument |
| Holding | |
| Louisiana's exceptions to the Special Master's recommendation that the motion to dismiss be denied are rejected. | |
| Court membership | |
| |
| Case opinions | |
| Majority | White, joined by Burger, Brennan, Stewart, Marshall, Blackmun, Stevens |
| Concurrence | Burger |
| Dissent | Rehnquist |
| Powell took no part in the consideration or decision of the case. | |
Maryland v. Louisiana, 451 U.S. 725 (1981), is a Supreme Court case in which Maryland challenged a Louisiana law that forbid any tax on natural gas that would be extracted within the state. Maryland argued that it broke the Commerce Clause. The court would rule in the favor of Maryland.
Hearing:
Many different entities including the United States, the Federal Energy Regulatory Commission, several states including Maryland, and multiple gas pipeline companies all went against Louisiana's tax constitutionality. They declared that the tax should not be able allocate the tax to other consumers, but only to the ultimate consumer. In the case's hearing of evidence, it is said that Louisiana's purpose of the tax was to pay back the citizens of Louisiana who were affected by the damages to the state's coastal regions, as well as compensating citizens for the costs that the state payed to protect those resources. It was also said that the Louisiana Act violates the Supremacy Clause because under the Natural Gas Act, the FERC must determine pipeline and producer costs and subject them to judicial review.
Decision:
The U.S. Supreme Court would favor Maryland in a 7-1 ruling. The favor ruled that Louisiana unconstitutionally used its "first-use" tax on natural gases and violated the Commerce Clause of the United States Constitution which says that Congress has the power to regulate commerce with foreign nations, several states, and even Indian Tribes.
This clause was first designed to stop individual states from making laws that can unfairly restrict or hurt trade between states. This helps with keeping the market open and fair for the U.S.
Aftermath:
Post ruling of the court, Louisiana had to stop its "first-use" tax, and it caused the Supremacy Clause from the Constitution to be reinforced as an example for the future. The court said the Natural Gas Act was violated by the taxing that took place and affirmed the Supremacy Clauses status with that decision.
References
- "U.S. Reports: Maryland v. Louisiana, 451 U.S. 725 (1981)". Library of Congress, Washington, D.C. 20540 USA. Retrieved 2024-09-15.
- "Maryland v. Louisiana, 451 U.S. 725 | Casetext Search + Citator". casetext.com. Retrieved 2024-09-26.
External links
Text of Maryland v. Louisiana, 451 U.S. 725 (1981) is available from: Justia Library of Congress Oyez (oral argument audio)
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