Kerr v. Waddell

OPINION

TOCI, Judge.

This is an action by federal employees Clark Kerr, Susan Morgan, Steve Allen, and John Udall (collectively, “the taxpayers”) seeking relief under 42 U.S.C. section 1983 (1988) against the director and assistant director of the Arizona Department of Revenue (“ADOR”), both individually and in their official capacities, and ADOR itself (collectively, “defendants”) for discriminatory taxation.

Since 1985, the effect of Arizona law was to tax 100 percent of federal employees’ mandatory contributions to federal retirement plans, while exempting from Arizona income taxation most…