Pratik Shah Quoted by Bloomberg BNA on Supreme Court’s Colorado Tax Case

Bloomberg BNA, for its article “Limits on State Taxing Authority Take Center Stage in U.S. Supreme Court,” quoted Akin Gump Supreme Court and appellate practice co-head Pratik Shah on a case before the high court involving the Tax Injunction Act (TIA), with particular focus on its applicability to out-of-state retailers with customers resident in Colorado.

Of Direct Mktg. Ass’n v. Brohl, Shah said that the justices would likely be “concerned about the administrability of the Tenth Circuit rule—a rule that would essentially allow invocation of the TIA beyond taxpayers challenging their own liability.” He added that judges and courts would find it difficult.

The article notes that a favorable ruling for the state would broaden the TIA’s reach. Shah, who authored an amicus brief filed by the U.S. Chamber of Commerce supporting petitioner Direct Marketing Association, added that the TIA “would be invoked far more frequently and be far less clear, because so many state regulations could have an effect on collection. A decision in favor of the state would also decrease predictability. Right now there is a pretty bright line rule.”

A decision is expected in the spring of 2015.