IMT, Inc. v. City of Lumberton

MARTIN, Justice.

The question before this Court is whether the City of Lumberton’s privilege license tax violates the Just and Equitable Tax Clause of Article V, Section 2(1) of the North Carolina Constitution. While the decision to levy a privilege license tax is within the discretion of legislative entities, any tax so levied must be just and equitable. Because the Just and Equitable Tax Clause is a substantive constitutional protection against abuse of the taxing power, we hold that the City of Lumberton’s tax increase of at least 59,900% exceeds constitutional bounds.

The parties in this…