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Court Upholds Chevron Challenge to Measure T

The Court concludes that Chevron’s challenge to Measure T is “well-taken,” and that “the tax scheme that has been selected and put in place cannot be enforced.”  In reaching this conclusion, the Court found that Measure T violates the Commerce Clause, and that the City’s implementing regulations were both unauthorized and insufficient to cure the constitutional violation.  The Court also found that Measure T is an “inventory tax” in violation of the Bradley-Burns Act.  The Court suggested that the appropriate remedy would be a return of the taxes collected in excess of the “alternative” tax permitted prior to the enactment of Measure T.


Click here for the Court decision.