States, counties and municipalities today energetically tax the income of interstate gas pipelines. Those taxes, however, can reach too widely. Despite U.S. Supreme Court decisions narrowing such state power, state tax laws can exceed constitutional limits with poorly drafted provisions like this one (modeled on an actual tax): Any person, firm or corporation engaged in business as a gas company, pipe line company for transporting or carrying natural gas, hydrogen or other similar commodities, distribution company using the means of pipelines for distributing natural gas, hydrogen or similar commodities, shall pay an annual license of two percent (2%) of their total gross receipts.
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