Stallings v. Oklahoma Tax Commission

In this case, the appellants’ federal retirement income was included in taxable income for state income tax purposes.1 Appellants voluntarily reported and paid state taxes on their retirement income. Retirement income of public employees of the state was exempted from state taxes.2 The United States Supreme Court declared a similar statutory scheme to be violative of federal law in Davis v. Michigan Department of Treasury, 489 U.S. 803, 109 S.Ct. 1500, 103 L.Ed.2d 891 (1989). On April 7, 1989, appellants (taxpayers) initiated this cause in the district court seeking injunctive relief and…