The Evaluator - Top 10 U.S. Supreme Court SALT Cases—What's on Your List?

This article appeared in the July 2026 edition of The Evaluator.

Authored by: Nicholas Ray

State and local taxation (“SALT”) exists in a cross-section of state and local law and policy decisions that are limited and constrained by U.S. and state constitutional protections.  The balancing of these factors goes back to the very beginning of the United States.

For those new to the SALT area or those who might only focus their efforts on one area of SALT, such as property taxation, these decisions may be something never considered or even avoided when called out like old friends by other SALT practitioners.

This article highlights the top 10 most significant U.S. Supreme Court cases, in the author’s opinion, involving state taxation.  These decisions have established foundational principles that impact how corporations are taxed, how states apportion income and how property is assessed.  

At the link provided you will find the decision itself, a summary of the decision and, for all but McCulloch v. Maryland, links to listen to the oral argument itself as well as the announcement of the Court’s decision. 

What do you think is missing or doesn’t belong?  Reach out to the author at nmray@vorys.com and share your thoughts or your list. 

General State Tax Matters:

McCulloch v. Maryland
17 U.S. 316 (1819)
Established federal supremacy in taxation, stating that states cannot tax the federal government or its entities.  Chief Justice John Marshall's declaration, "the power to tax involves the power to destroy," has significantly influenced the balance of state and federal taxing authority and the application of federal constitutional protections from overreaching state and local taxation.[1]
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Northwestern States Portland Cement Co. v. Minnesota
358 U.S. 450 (1959)
Upheld state income taxes on net income from interstate commerce if fairly apportioned to business conducted within the state.
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Complete Auto Transit, Inc. v. Brady
430 U.S. 274 (1977)
Established a four-prong test for the constitutionality of state taxes under the Commerce Clause: substantial nexus, fair apportionment, non-discrimination and fair relation to services provided.
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Tyler Pipe Industries, Inc. v. Washington State Department of Revenue
483 U.S. 232 (1987)
Found a state tax on gross receipts of a company engaged in interstate commerce unconstitutional due to discrimination against interstate commerce.
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South Central Bell Telephone Co. v. Alabama
526 U.S. 160 (1999)
Found Alabama's franchise tax, which discriminated against out-of-state corporations, violated the Commerce Clause.
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Hunt-Wesson, Inc. v. Franchise Tax Board of California
528 U.S. 458 (2000)
Ruled that California's method of taxing interest expense deductions violated the Commerce Clause by unfairly burdening interstate commerce.
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South Dakota v. Wayfair, Inc.
585 U.S. 163 (2018)
Overruled Quill (504 U.S. 298 (1992)) and National Bellas Hess (386 U.S. 753 (1967)) line of cases requiring physical presence for sales and use tax nexus by allowing states to require out-of-state sellers to collect sales tax without physical presence, provided no undue burden on interstate commerce.
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Property Tax Specific Cases

Allegheny Pittsburgh Coal Co. v. County Commission
488 U.S. 336 (1989)
Grossly unequal property tax assessments violate the Equal Protection Clause. Allegheny's assessment was 8 to 35 times higher over a 10-year period.
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Nordlinger v. Hahn
505 U.S. 1 (1992)
Upheld California’s Proposition 13 and allowed acquisition-value-based taxation. Distinguished Allegheny Pittsburgh Coal Co.
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DaimlerChrysler Corp. v. Cuno
547 U.S. 332 (2006)
Taxpayers challenging tax incentives for the facility in Toledo, Ohio did not have standing.  They could not definitively show a harm.  Court overruled 6th Circuit decision finding incentives violated the Commerce Clause.
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[1] The similarly highly regarded Justice Oliver Wendell Holmes Jr., almost 110 years later, responded to Chief Justice Marshall’s warning in Panhandle Oil Co. v. Mississippi ex rel. Knox 277 U.S. 218, 223 (1928) with, “The power to tax is not the power to destroy while this Court sits.”