Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

New Mexico Supreme Court upholds validity of state electrical energy tax

Journal Article · · Nat. Resour. J.; (United States)
OSTI ID:6520856

The Electrical Energy Tax Act (EETA) passed by New Mexico's legislature in 1975 has been upheld by the state's Supreme Court even though it only allows tax credits for electricity consumed within the borders. The New Mexico Supreme Court decided against suits challenging EETA's constitutionality on the grounds that the law was not made void by a later Federal statute prohibiting discriminatory taxes and that the tax doesn't impose a burden on interstate commerce. The author reviews the Federal prohibition and arguments used to justify and challenge New Mexico's stance. Court precedents are used to analyze the arguments of utility companies in other states opposing the tax. The courts denied the applicability of the Commerce Clause on the grounds that New Mexico bears the environmental, social, and economic costs of electrical generation.

OSTI ID:
6520856
Journal Information:
Nat. Resour. J.; (United States), Journal Name: Nat. Resour. J.; (United States) Vol. 18:3; ISSN NRJOA
Country of Publication:
United States
Language:
English