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A city places a tax on the plastic bags customers use for their store purchases. The state legislature responds by passing a bill that outlaws taxes on plastic bags, and the governor signs the bill into law.

What does this example show?

Only state governments can regulate businesses.
Only state governments can pass laws that involve taxes.
State governments often side with businesses in disputes.
State governments can regulate which laws cities can pass.

2 Answers

4 votes
This example shows that state governments can regulate which laws cities can pass. The city placed a tax on plastic bags, but the state legislature passed a law that outlaws taxes on plastic bags, effectively nullifying the city's law. This demonstrates that the state government has the power to regulate and restrict the laws that cities can pass, including laws related to taxes and business regulations.
User Leogama
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Step-by-step explanation:

This example shows that state governments can regulate which laws cities can pass.

User MikeTV
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