Clark Kerr v. M killian/az Dept of Revenue

OPINION

HURWITZ, Justice.

¶ 1 The question in this case is whether Arizona’s income tax scheme violates the intergovernmental tax immunity doctrine because it effectively subjects federal employees’ mandatory retirement contributions to current taxation, while deferring taxation of similar contributions by state and local employees. We conclude that the state income tax code does not discriminate against federal employees because of the source of their pay or compensation, and thus does not violate the intergovernmental tax immunity doctrine, codified in 4 U.S.C. § 111(a) (2000).

I

¶ 2 This case…