DaimlerChrysler Corp. v. Cuno

DaimlerChrysler Corp. V. Cuno

DaimlerChrysler Corp. v. Cuno

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DaimlerChrysler Corp. v. Cuno, 547 U.S. 332 (2006) was a decision by the Supreme Court of the United States involving the standing of taxpayers to challenge state tax laws in federal court. The Court unanimously ruled that state taxpayers did not have standing under Article III of the United States Constitution to challenge state tax or spending decisions simply by virtue of their status as taxpayers. Chief Justice John Roberts delivered the majority opinion (his fifth on the Court), which was joined by all of the justices except for Ruth Bader Ginsburg, who concurred separately.

Background of the case

Tax incentives and taxpayer lawsuit

On November 12, 1998, the city of Toledo, Ohio entered into a development agreement with auto manufacturer DaimlerChrysler, for it to construct a new Jeep assembly plant near its existing facility in exchange for various tax incentives. DaimlerChrysler was to receive approximately $280,000,000 in tax benefits, in the form of a ten-year exemption from certain property taxes and a credit applied against its state corporate franchise tax for certain investments. The Toledo Public and Washington Local school districts, in which the facilities were located, consented to the exemption.

Eighteen taxpayers subsequently filed suit in Lucas County Court of Common Pleas...
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