Question

Regency Tranportation, Inc. , operate a freight buine throughout the eatern United State. Regency maintain it corporate headquarter, four warehoue, and a maintenance facility and terminal location for repairing and toring vehicle in Maachuett. All of the vehicle in Regency’ fleet were bought in other tate. Maachuett impoe a ue tax on all taxpayer ubject to it juridiction, including thoe that do buine in intertate commerce, a Regency doe. When Maachuett impoed the tax on the purchae price of each tractor and trailer in Regency’ fleet, the trucking firm challenged the aement a dicriminatory under the commerce claue. What i the chief conideration under the commerce claue when a tate law affect intertate commerce? I Maachuett’ ue tax valid? Explain

Answer 1

Companies use tax breaks, from the state they are in, and if another state offers a less expensive tax for tags and license, they register their vehicles , where ever is the least cost.