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May 16, 2006

News Article

High court backs commuter tax ban

D.C. Examiner

Michael Neibauer

WASHINGTON - The U.S. Supreme Court on Monday upheld the congressional ban on a D.C. commuter tax, ending the Districts legal battle to levy an income tax on some 500,000 residents of surrounding states who work in Washington.
The lawsuit sought to overturn the federal prohibition on a nonresident income tax, which the District argues is largely responsible for its estimated $1 billion structural imbalance, the gap between the revenues the District needs and how much it is able to collect. By refusing to hear arguments, the Supreme Court upheld a November decision from the U.S. Court of Appeals to dismiss the D.C. governments suit.
Mayor Anthony Williams said the District, the only U.S. jurisdiction prohibited from implementing a commuter tax, will continue to suffer for the courts ruling.
The infrastructure of our city is obviously taxed by the daily wear and tear of tens of thousands of commuters who work in the District but who do not pay for the city services that they use, Williams said in a statement.
The courts decision upholds past rulings that Congress has constitutional authority over the District and is perfectly within its rights to ban the tax. Ward 4 D.C. Council Member Adrian Fenty said Monday that it is a law that needs to be overturned as soon as possible.
But with legal options exhausted, tax supporters say the Districts best option might be a House bill backed by the entire regional delegation that would compensate the District for the lost revenue  roughly $800 million a year.
Im hoping Congress will now see the ball in their court, said Walter Smith, the lead lawyer with the D.C. Appleseed Center for Law and Justice, which acted as the Districts attorneys.
The commuter tax was opposed by virtually every regional government.
Sean Connaughton, chairman of the Prince William Board of County Supervisors, said people would be more sympathetic to the Districts plight if its schools, transportation system and other services were truly in order.
The federal government, he said, already puts enough money into D.C., and theres no need to be putting any more into it.