The selective income taxexemption for home-state municipal bonds at issue in Davis v. Kentucky Department of Revenue is a barrier to interstate commerce.

Media inquiries: Véronique Rodmanvrodman@aei.org (202.862.4870)

FOR IMMEDIATE RELEASE: November 5, 2007

As the Supreme Court hears oral arguments today in Davis v. Kentucky Department of Revenue, AEI Resident Scholar and former Federal Reserve Bank of Dallas economist Alan D. Viard offers the...

On November 5, the U.S. Supreme Court is scheduled to hear oral arguments in Davis v. Kentucky Department of Revenue—a lawsuit that threatens the continued existence of hundreds of single-state municipal bond funds, each of which holds a particular state’s bonds and caters to that state’s residents. The Supreme Court...

Viard is available to comment on the possible ramifications of the Supreme Court case Davis v. Kentucky Department of Revenue.

The selective income tax exemption for home-state municipal bonds at issue in Davis v. Kentucky Department of Revenue is a barrier to interstate commerce.

Should interstate trade be restricted?

In Kentucky Department of Revenue vs. Davis, the Supreme Court chose not to resolve the validity of the current state treatment of private activity bonds.

Viard critiques the recent U.S. Supreme Court decision in Kentucky Dept. of Revenue v. Davis, which upheld state income tax exemptions for residents' holdings of home-state municipal bonds.