Sierra Pac. Power Co. v. State, Dep’t of Taxation

NV Energy owns and operates electricity-generating plants in Nevada. NV Energy fueled two of those plants with coal obtained from mines outside Nevada and paid a use tax for its coal consumption pursuant to Nev. Rev. Stat. 372.185. NV Energy petitioned the State Department of Taxation for a refund for the use taxes it paid on coal purchased over a four-year period, arguing that the Nev. Rev. Stat. 372.270 exemption from the use tax for locally produced mine and mineral proceeds discriminates against interstate commerce in violation of the dormant Commerce Clause. The district court concluded that the exemption violated the Commerce Clause and struck the statute in its entirety but refused to award NV Energy any refund. The Supreme Court affirmed, holding (1) section 372.270 is not severable; and (2) because NV Energy did not have any competitors who received the tax benefit, the tax scheme did not actually discriminate against interstate commerce, and therefore, NV Energy was not entitled to a refund. View "Sierra Pac. Power Co. v. State, Dep’t of Taxation" on Justia Law