Memphis Bank and Trust Co. v. Garner

OPINION

HARBISON, Chief Justice.

Appellee paid under protest and sought recovery of the local bank excise tax for the years 1977 and 1978. It contended that the taxing statute was unconstitutional and unenforceable insofar as it required inclusion of interest on federal obligations in measuring the tax. The Chancellor allowed recovery, holding that the state statute was contrary to federal exemption statutes, such as 31 U.S.C. § 742, and to the Supremacy Clause of the United States Constitution. 1 Finding no such conflict, we reverse and dismiss the action.

The decision of the Chancellor was…