Hibbs v. Winn
A group of Arizona taxpayers brought an action challenging the constitutionality of a state statute that permits tax credits for contributions that support parochial schools. The district dismissed the case for lack of jurisdiction, finding that the Tax Injunction Act (TIA) and the comity doctrine precluded federal jurisdiction. The Ninth Circuit Court of Appeals reversed, holding that (1) the TIA did not bar the case because the invalidation of a tax credit would not adversely affect the state's ability to raise revenue; and (2) the principles of comity did not apply to preclude federal jurisdiction of this case.
Question Presented:
Did the Ninth Circuit err in holding, in conflict with the First, Sixth and Eleventh Circuits, that the Tax injunction Act, 28 U.S.C. ยง 1341, and principles of comity that traditionally restrain
federal judicial interference with state tax systems do not require district courts to dismiss constitutional challenges to state tax credits that directly impact the administration of a State's
tax system?
