APPENDIX @ThisKLV! opinionRSLQLRQ! isLV !subjectVXEMHFW !toWR! revisionUHYLVLRQ !beforeEHIRUH! IfinalLQDO ! SpublicationXEOLFDWLRQ! inLQ !WtheKH! =PacificDFLILF! >ReporterHSRUWHU! 2019&$%)! 5UT4! 47'(! !

IN@E! THEK?< ! 3SUPREME512,/,! COURT+0524! OF0-! THE4.,! 3STATE4*4,! OF0-! UTAH54*.! ! IROBERTF8

UTAHLK7?! STATEJK7K< !TAXK7O! COMMISSION,9FDD@JJ@FE(! -AppelleeSSHOOHH! andDQG !/Cross-Appellant.URVV'-SSHOODQW( ! ! ENo.c*! 20180223-+,3+--.! Filed=]`YX !August7i[igh !14,,/(! 2019-+,4! ! OnFb! Direct;]fYWh !Appeal7ddYU`! ! ThirdK\]fX !District,;]ghf]Wh(! SaltJU`h !CLakeU_Y ! TheK\Y! Honorable?cbcfUV`Y! ENoelcY`! S.J*! Hyde?mXY! ENo.c*! 170901774,2+4+,22/! ! Attorneys:7hhcfbYmg5! GPeterYhYf !W.N*! Billings,8]``]b[g(! WilliamN]``]Ua! H.?*! Adams,7XUag(! ENoracfU !BK.*! Brunelle,8fibY``Y(! ;DavidUj]X !GP.*! 8Billings,]``]b[g(! SaltJU`h !CLakeU_Y! City,9]hm(! forZcf !appellantsUddY``Ubhg! andUbX !cross-appelleesWfcgg)UddY``YYg! SeanJYUb ;D.* IReyes,YmYg( Att'y7hhvm Gen.,>Yb*( StanfordJhUbZcfX Yb*(! Yb*(! JohnAc\b! C.9*! McCarrey,DW9UffYm(! !DMarkUf_! Ybg*(! SaltJU`h !CLakeU_Y! City,9]hm(! forZcf !appelleeUddY``YY !andUbX ! cross-appellantWfcgg)UddY``Ubh ! ! ASSOCIATE7JJF9@7K< !CHIEF9?@<= !JUSTICEALJK@9< !CLEE<< !authoredUih\cfYX !hthe\Y! opinioncd]b]cb! ofcZ !theh\Y! 9Court,cifh(! in]b! whichk\]W\ !9CHIEF?@<= !JUSTICEALJK@9< !DURRANT,;LII7EK(! JUSTICEALJK@9< !HIMONAS,?@DFE7J(! JUSTICEALJK@9< !GPEARCE,<7I9<(! andUbX !JUSTICEALJK@9< !GPETERSEN

ASSOCIATE7JJF9@7K< !9CHIEF?@<= !JUSTICEALJK@9< !CLEE,<<(! opinioncd]b]cb! ofcZ !hthe\Y! 9Court:cifh5! x¶1, TheK\Y! UtahLhU\! StateJhUhY! TaxKUl! 9Commissioncaa]gg]cb! Xdisallowed]gU``ckYX ! certainWYfhU]b! taxhUl! XdeductionsYXiWh]cbg! claimedW`U]aYX ! byVm ! IRobertcVYfh ! andUbX ! WendyNYbXm ! SteinerJhY]bYf ! oncb! htheir\Y]f ! taxhUl! returns.fYhifbg*! TheK\Y! SteinersJhY]bYfg! filedZ]`YX !aU !Wchallenge\U``Yb[Y !htoc !hthat\Uh !XdeterminationYhYfa]bUh]cb! in]b! hthe\Y !htaxUl! court.Wcifh*! @Inb! hthat\Uh ! forum,Zcfia(! theh\Y! SteinersJhY]bYfg! assertedUggYfhYX ! hthat\Uh ! hthe\Y! UnitedLb]hYX ! StatesJhUhYg! STEINERJK<@E1/@B !v.Y( !AUtahWDK! ?StateWDWH! @TaxD[ !/Commission,RPPLVVLRQ(! 2015-+,0! UTLK! 93,4.(! 364.1/! GP.3d*.X !1036.,+.1*! ThereK\YfY !wekY! notedbchYX !hthe\Y! `lackUW_ !ofcZ !anyUbm! textualhYlhiU`! orcf !originalistcf][]bU`]gh !amooringccf]b[! forZcf !hthe\Y! XdoctrinecWhf]bY! hthat\Uh !has\Ug! builtVi]`h! iupd! aroundUfcibX !hthe\Y! conceptWcbWYdh !ofcZ !XdormantcfaUbh! commerce,WcaaYfWY(! whilek\]`Y alsoU`gc lamenting`UaYbh]b[ hthe\Y lack`UW_ ofcZ anyUbm "clear,sW`YUf( overarchingcjYfUfW\]b[ theory"h\Ycfmt in]b! hthe\Y! XdecisionsYW]g]cbg! ofcZ ! hthe\Y! UnitedLb]hYX ! StatesJhUhYg! SupremeJidfYaY! 9Courtcifh ! in]b! hthis\]g! field.Z]Y`X*! 5Id.G*! x¶! 45./0*! WeNY! acknowledged,UW_bck`YX[YX(! ofcZ ! course,WcifgY(! ourcif ! Xdutyihm! htoc! followZc``ck! controllingWcbhfc``]b[! dprecedentfYWYXYbh ! fromZfca! hthat\Uh ! court.Wcifh*! But8ih ! wekY! emphasizedYad\Ug]nYX ! hthe\Y! Xdifficulty]ZZ]Wi`hm! ofcZ ! "anticipat[ing]sUbh]W]dUhR]b[S expansionsYldUbg]cbg ofcZ hthe\Y `law"Ukt in]b thish\]g fieldZ]Y`X "intos]bhc newbYk hterritory"Yff]hcfmt notbch yetmYh exploredYld`cfYX byVm hthe\Y SupremeJidfYaY 9Court.cifh* 5Id.G( ! And7bX ! ]inb! hthe\Y! absenceUVgYbWY !ofcZ !clearW`YUf !Xdirection]fYWh]cb! &(in]b! text,hYlh(! \history,]ghcfm(! orcf !dprecedent),fYWYXYbh'(! wekY! XdeclinedYW`]bYX ! htoc !makeaU_Y! aU ![guessiYgg! aboutUVcih ! hthe\Y! Xdirection]fYWh]cb! hthe\Y! caseWUgY! `lawUk! amight][\h !htakeU_Y! ]inb! hthe\Y! nextbYlh !caseWUgY! thath\Uh !comesWcaYg! beforeVYZcfY! hthe\Y! SupremeJidfYaY! 9Court.cifh*! 5Id.G(! x¶4/ WeNY! resolvefYgc`jY ! thish\]g! caseWUgY! oncb! thish\]g! Vbasis.Ug]g*! NWeY! findZ]bX ! nobc ! controllingWcbhfc``]b[! dprecedentfYWYXYbh ! fromZfca! hthe\Y! UnitedLb]hYX ! StatesJhUhYg! SupremeJidfYaY! 9Courtcifh ! hthat\Uh ! amandatesUbXUhYg! aU ! XdecisionYW]g]cb! strikingghf]_]b[! Xdownckb! hthe\Y! challengedW\U``Yb[YX ! UtahLhU\! htaxUl! dprovisionsfcj]g]cbg! oncb! XdormantcfaUbh !commerceWcaaYfWY! [grounds.fcibXg*! And7bX !wekY! iupholdd\c`X !htheir\Y]f !constitutionalityWcbgh]hih]cbU`]hm! oncb! hthat\Uh !basis.VUg]g*! @I !! x¶50 TheK\Y !SteinersJhY]bYfg! filedZ]`YX ! ^jointc]bh ! htaxUl! returnsfYhifbg! asUg! UtahLhU\! residentsfYg]XYbhg! ]inb! htaxUl! yearsmYUfg! 2011,-+,,(! 2012,-+,-(! andUbX !2013.-+,.*! Although7`h\ci[\! htheir\Y]f !]incomebWcaY! ]includedbW`iXYX !YearningsUfb]b[g!

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2-! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! fromZfca! variousjUf]cig! sources,gcifWYg(! hthe\Y! onlycb`m! componentWcadcbYbh !atUh! issue]ggiY !oncb! appealUddYU`! is]g! hthe\Y! htaxUl !oncb! businessVig]bYgg! ]incomebWcaY! YearnedUfbYX !byVm! IRobertcVYfh !SteinerJhY]bYf !&(Steiner).JhY]bYf'*! ! x¶61 SteinerJhY]bYf !is]g! aU !shareholderg\UfY\c`XYf !ofcZ !Steiner,JhY]bYf(! CLLC,C9(! whichk\]W\! ]isg! htaxedUlYX !asUg! anUb! SJ! corporation?WcfdcfUh]cb*-! He?Y! is]g! alsoU`gc! aU !beneficiaryVYbYZ]W]Ufm! ofcZ !hthe\Y! G.A.>*7*! SteinerJhY]bYf !TrustKfigh !&(theh\Y! Trust),Kfigh'(! whichk\]W\! is]g! hthe\Y ! amajorityU^cf]hm! shareholderg\UfY\c`XYf ! ofcZ ! Steiner,JhY]bYf(! CLLC.C9* ! TheK\Y! Steiners'JhY]bYfgv income]bWcaY! fromZfca! Steiner,JhY]bYf(! LLCCC9! Xduringif]b[! hthe\Y! relevantfY`YjUbh ! dperiodYf]cX ! included]bW`iXYX ! bothVch\! amountsUacibhg! dpassedUggYX ! Xdirectly]fYWh`m! tohc! SteinerJhY]bYf ! byVm! virtuej]fhiY! ofcZ ! his\]g! Xdirect]fYWh !stakeghU_Y! ]inb! Steiner,JhY]bYf(! CLLCC9! andUbX !amountsUacibhg! attributableUhhf]VihUV`Y !htoc! SteinerJhY]bYf !asUg! aU ! beneficiaryVYbYZ]W]Ufm! ofcZ !hthe\Y !Trust.Kfigh*! ! x¶72 Steiner,JhY]bYf(! LLCCC9! is]g! hthe\Y! solegc`Y! shareholderg\UfY\c`XYf !ofcZ !Alsco,7`gWc(! @Inc.bW*! Alsco7`gWc! is]g! aU ! htextileYlh]`Y! rentalfYbhU`! business,Vig]bYgg(! whichk\]W\! alongU`cb[! withk]h\! its]hg! subsidiariesgiVg]X]Uf]Yg! XdoescYg! businessVig]bYgg! in]b! theh\Y! UnitedLb]hYX !StatesJhUhYg! andUbX !aroundUfcibX !hthe\Y !world.kcf`X*! Alsco7`gWc! andUbX !allU`` !ofcZ ! its]hg! subsidiariesgiVg]X]Uf]Yg! thath\Uh !Xdoc! businessVig]bYgg! in]b! hthe\Y !UnitedLb]hYX !StatesJhUhYg! have\UjY! electedY`YWhYX !htoc! beVY! htaxedUlYX !asUg! QualifiedHiU`]Z]YX !SJ! Subsidiaries.JiVg]X]Uf]Yg*! Thus,K\ig(! allU``! ofcZ !theh\Y! income]bWcaY! XderivedYf]jYX ! fromZfca! hthese\YgY !entitiesYbh]h]Yg! is]g! dpassedUggYX !hthrough\fci[\! htoc !Steiner,JhY]bYf(! CLLC.C9*! Steiner,JhY]bYf(! CLLC,C9(! ]inb! hturn,ifb(! dpassesUggYg! hthe\Y! ]incomebWcaY! hthrough\fci[\! htoc ! its]hg! individual]bX]j]XiU`! shareholders,g\UfY\c`XYfg(! including]bW`iX]b[! Steiner.JhY]bYf*! SuchJiW\! income]bWcaY! ]isg! accordinglyUWWcfX]b[`m ! freflectedYZ`YWhYX ! oncb! hthe\Y! Steiners'JhY]bYfgv ^jointc]bh htaxUl returns.fYhifbg*! DMostcgh ofcZ Alsco's7`gWcvg foreignZcfY][b subsidiariesgiVg]X]Uf]Yg! have\UjY! electedY`YWhYX !tohc! beVY !taxedhUlYX !asUg! dpartnershipsUfhbYfg\]dg! forZcf !U.S.L*J*! htaxUl! dpurposes.ifdcgYg*! ENinety-nine]bYhm)b]bY! dpercentYfWYbh ! ofcZ ! hthe\Y! ]incomebWcaY! fromZfca! eachYUW\! subsidiarygiVg]X]Ufm! is]g! dpassedUggYX ! hthrough\fci[\! htoc! Alsco7`gWc !asUg! aU !dpartner.UfhbYf*! ThisK\]g! ]incomebWcaY! [goescYg! hthrough\fci[\! hthe\Y! samegUaY !dpass-throughUgg)h\fci[\! waterfallkUhYfZU`` andUbX endsYbXg iupd oncb hthe\Y Steiners'JhY]bYfgv !^jointc]bh !htaxUl! freturnsYhifbg! asUg! well.kY``*! ! x¶83 OnFb! theirh\Y]f ! federalZYXYfU`! htaxUl! freturnsYhifbg! Xduringif]b[! hthe\Y! frelevantY`YjUbh ! yearsmYUfg! hthe\Y! SteinersJhY]bYfg! claimed,W`U]aYX(! andUbX ! received,fYWY]jYX(! aU ! htaxUl ! creditWfYX]h! forZcf ! hthe\Y! htaxesUlYg! theyh\Ym! \hadUX ! dpaidU]X !htoc! foreignZcfY][b! ^jurisdictions.if]gX]Wh]cbg*! OnFb! htheir\Y]f !UtahLhU\! htaxUl !returns,fYhifbg(! hthe\Y !SteinersJhY]bYfg! claimedW`U]aYX !aU !stateghUhY! htaxUl! creditWfYX]h !forZcf ! htaxesUlYg! hthey\Ym! dpaidU]X ! htoc !otherch\Yf !states.ghUhYg*! TheseK\YgY! creditsWfYX]hg! areUfY! explicitlyYld`]W]h`m! allowedU``ckYX ! Vbym! hthe\Y! UtahLhU\! TaxKUl! 9Code.cXY*! UTAHLK7?! 9CODEF;< ! §v! 59-10-1003.04),+),++.*! But8ih theh\Y SteinersJhY]bYfg alsoU`gc claimedW`U]aYX anUb "equitablesYei]hUV`Y adjustment"UX^ighaYbht iunderbXYf ! UtahLhU\! 9CodecXY! sectiongYWh]cb! 59-10-11504),+),,0r — anUb! adjustmentUX^ighaYbh ! excludingYlW`iX]b[! foreignZcfY][b! income]bWcaY! fromZfca! htheir\Y]f !UtahLhU\! htaxableUlUV`Y! income.]bWcaY*! !

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2-! ThatK\Uh !ameansYUbg! thath\Uh! Steiner,JhY]bYf(! CLLCC9! itself]hgY`Z !XdoescYg! bnotch !dpayUm! anyUbm! federalZYXYfU`! orcf ! state-levelghUhY)`YjY`! htax.Ul*! ?SeeHH! 26-1! U.S.C.L*J*9*! §v! 1363;,.1.6! UTAHLK7?! 9CODEF;< !§v! 59-10-1403(1).04),+),/+.&,'*! All7``! ofcZ its]hg income]bWcaY dpassesUggYg hthrough\fci[\ htoc individual]bX]j]XiU` shareholders'g\UfY\c`XYfgv htaxUl returnsfYhifbg &(in]b! dproportionfcdcfh]cb! htoc ! htheir\Y]f ! ownershipckbYfg\]d! ]interest).bhYfYgh'*! 26-1! U.S.C.L*J*9*! §v! 1366;,.116! UTAHLK7?! 9CODEF;< ! §v! 59-10-1403.1(2).04),+),/+.*,&-'*! TheK\Y! individuals]bX]j]XiU`g! hthen\Yb! dpayUm! htaxesUlYg! oncb! hthe\Y! amountUacibh! dpassedUggYX !throughh\fci[\! htoc !theirh\Y]f !individual]bX]j]XiU`! returns.fYhifbg*! 26-1! U.S.C.L*J*9*! §v! 1366.,.11*! !

3.! ! STEINERJK<@E

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4/ !Apportionment7ddcfh]cbaYbh ! ]involvesbjc`jYg! allocationU``cWUh]cb! ofcZ ! corporateWcfdcfUhY! businessVig]bYgg! income]bWcaY! tohc! UtahLhU\ !byVm! comparingWcadUf]b[! aU !corporation'sWcfdcfUh]cbvg Utah-specificLhU\)gdYW]Z]W! dpresencefYgYbWY! withk]h\ ! its]hg! overallcjYfU``! dpayroll,Umfc``(! dproperty,fcdYfhm(! sales,gU`Yg(! andUbX ! sogc! forth.Zcfh\*! UTAHLK7?! 9CODEF;< ! §v! 59-7-311.04)2).,,*! OnlyFb`m !hthe\Y !dproportionfcdcfh]cb! ofcZ !income]bWcaY! attributableUhhf]VihUV`Y !htoc !UtahLhU\! is]g! hthen\Yb! htaxedUlYX !byVm! Utah.LhU\*! !

4/! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! ofcZ ! hthat\Uh! clause.W`UigY*! TheK\Y! courtWcifh ! wentkYbh ! oncb! htoc! rulefi`Y! hthat\Uh ! hthe\Y! SteinersJhY]bYfg! werekYfY! entitledYbh]h`YX ! htoc! claimW`U]a! anUb! Yequitableei]hUV`Y! adjustmentUX^ighaYbh! forZcf ! htheir\Y]f !foreignZcfY][b! Vbusinessig]bYgg! income.]bWcaY*! TheK\Y court'sWcifhvg rulingfi`]b[ in]b hthis\]g regard,fY[UfX( althoughU`h\ci[\ iultimately`h]aUhY`m! basedVUgYX ! oncb! statutoryghUhihcfm! [grounds,fcibXg(! waskUg! Xdrivenf]jYb! Vbym! Wconstitutionalcbgh]hih]cbU`! concerns.WcbWYfbg*! @Inb! dparticular,Ufh]Wi`Uf(! hthe\Y! htaxUl! courtWcifh! believedVY`]YjYX ! hthat\Uh ! hthe\Y! ;DormantcfaUbh ! Foreign=cfY][b! 9CommercecaaYfWY! 9Clause`UigY ! amandatedUbXUhYX ! hthat\Uh ! UtahLhU\! allowU``ck! foreignZcfY][b! businessVig]bYgg! income]bWcaY! htoc! beVY !Xdeducted.YXiWhYX*! TheK\Y! htaxUl! Wcourtcifh !hthus\ig! fremandedYaUbXYX !theh\Y! WcaseUgY! htoc! hthe\Y ! 9Commissioncaa]gg]cb! sogc! ]ith ! couldWci`X ! applyUdd`m! hthe\Y! equitableYei]hUV`Y! adjustmentUX^ighaYbh ! htoc! hthe\Y! Steiners'JhY]bYfgv income.]bWcaY*! 8Bothch\! dpartiesUfh]Yg! filedZ]`YX ! noticesbch]WYg! ofcZ ! appealUddYU`! htoc! hthis\]g! courtWcifh ! dpursuantifgiUbh !htoc !UtahLhU\! 9CodecXY! sectiongYWh]cb! 59-1-608.04),)1+3*! II@@! x¶13,. TheK\Y ! Commerce9caaYfWY ! Clause9`UigY! [grantsfUbhg! 9Congresscb[fYgg! hthe\Y! authorityUih\cf]hm! htoc! regulatefY[i`UhY! interstate]bhYfghUhY! commerce.WcaaYfWY*! U.S.L*J*! 9CONST.FEJK* ! art.Ufh*! I,@(! §v! 8,3(! cl.W`*! 3..*! "Bys8m! negativebY[Uh]jY! implication,"]ad`]WUh]cb(t hthe\Y UnitedLb]hYX StatesJhUhYg SupremeJidfYaY 9Courtcifh \hasUg \heldY`X hthat\Uh! "thissh\]g! dprovisionfcj]g]cb! alsoU`gc! limits`]a]hg! hthe\Y! states'ghUhYgv ! authorityUih\cf]hm! in]b! thish\]g! frealm."YU`a*t 0DIRECTV5>1/@B v.Y( UtahAWDK ?StateWDWH @TaxD[ /Comm'n,RPPbQ(! 2015-+,0! 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TheyK\Ym areUfY mistaken.a]ghU_Yb* WeNY hold\c`X hthat\Uh Utah'sLhU\vg dprovisionfcj]g]cb ofcZ creditsWfYX]hg forZcf income]bWcaY ! htaxesUlYg! alreadyU`fYUXm! dpaidU]X ! htoc! otherch\Yf ! statesghUhYg! satisfiesgUh]gZ]Yg! hthe\Y ! XdormantcfaUbh ! commerceWcaaYfWY !requirementsfYei]fYaYbhg! setgYh !forthZcfh\! in]b! controllingWcbhfc``]b[! dprecedent.fYWYXYbh*50 !! x¶23-. TheK\Y !seminalgYa]bU`! caseWUgY !]inb! hthis\]g! areaUfYU !is]g !/CompleteRPSOHWH! -AutoXWR! @Transit,UDQVLW& !5Inc.QF( !v.Y( ! .Brady,UDG\(! 430/.+! U.S.L*J*! 274-2/! (1977).&,422'*! /CompleteRPSOHWH! -AutoXWR! is]g! hthe\Y! origincf][]b! ofcZ !hthe\Y! four-partZcif)dUfh ! htestYgh ! iusedgYX ! tohc! assessUggYgg! stateghUhY! htaxesUlYg! forZcf ! complianceWcad`]UbWY! withk]h\! theh\Y! Dormant;cfaUbh! 9CommercecaaYfWY! 9Clause.`UigY*! 8Butih !hthe\Y! /CompleteRPSOHWH! -AutoXWR! frameworkZfUaYkcf_! waskUg! alteredU`hYfYX !byVm! hthe\Y SupremeJidfYaY Court's9cifhvg moreacfY ! recentfYWYbh ! 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83! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! 2-! x¶30.+ WynneC\QQH! waskUg! aU ! challengeW\U``Yb[Y! broughtVfci[\h! byVm! individual]bX]j]XiU`! htaxpayersUldUmYfg! againstU[U]bgh !Maryland'sDUfm`UbXvg htaxUl statutes.ghUhihYg*! TheK\Y! WynnesNmbbYg! soughtgci[\h !htwokc! important]adcfhUbh! extensionsYlhYbg]cbg htoc hthe\Y SupremeJidfYaY 9Court'scifhvg hthen-existing\Yb)Yl]gh]b[! Dormant;cfaUbh !Commerce9caaYfWY! 9Clause`UigY! jurisprudence.^if]gdfiXYbWY*! First,=]fgh(! theyh\Ym! wantedkUbhYX ! hthe\Y! Court9cifh ! htoc! applyUdd`m! hthe\Y! clauseW`UigY !htoc !anUb! ]individualbX]j]XiU`! &(ratherfUh\Yf !thanh\Ub! aU !corporation)WcfdcfUh]cb' !forZcf !hthe\Y !firstZ]fgh !htime.]aY*! Second,JYWcbX(! theyh\Ym! wantedkUbhYX ! hthe\Y! Court9cifh ! tohc! applyUdd`m! hthe\Y! clauseW`UigY! htoc ! aU ! residency-basedfYg]XYbWm)VUgYX !income]bWcaY! htaxUl r— alsoU`gc! forZcf !theh\Y! firstZ]fgh! htime.]aY*! ! x¶31., CLike]_Y! hthe\Y !Steiners,JhY]bYfg(! hthe\Y! htaxpayersUldUmYfg! in]b! WynneC\QQH! werekYfY !shareholdersg\UfY\c`XYfg! ofcZ ! anUb! SJ! corporation.WcfdcfUh]cb*! Wynne,C\QQH(! 135,.0! S.J*! 9Ct.h*! atUh !1793.,24.*! TheK\Y! WynnesNmbbYg! werekYfY! residentsfYg]XYbhg! ofcZ ! DMaryland.Ufm`UbX*! 5Id.G*! At7h ! hthe\Y! timeh]aY ! ofcZ ! hthat\Uh ! case,WUgY(! DMarylandUfm`UbX ! imposed]adcgYX !htwokc! levels`YjY`g! ofcZ !stateghUhY! htaxation—first,UlUh]cbrZ]fgh(! aU !stateghUhY! income]bWcaY !htax,Ul(! whichk\]W\! MarylandDUfm`UbX !levied`Yj]YX !atUh !aU ![graduatedfUXiUhYX !rate;fUhY6! andUbX !second,gYWcbX(! aU !countyWcibhm ! ]incomebWcaY! htax,Ul(! whichk\]W\! variedjUf]YX !basedVUgYX !oncb! [geographyYc[fUd\m! butVih !waskUg! levied`Yj]YX !atUh !aU !flatZ`Uh !rate.fUhY*! 5Id.G( ! atUh ! 1792.,24-*! Despite;Ygd]hY! theh\Y! Xdiffering]ZZYf]b[! nomenclature,bcaYbW`UhifY(! bothVch\! htaxesUlYg! werekYfY! collectedWc``YWhYX ! Xdirectly]fYWh`m! byVm! hthe\Y! stateghUhY! ofcZ ! Maryland.DUfm`UbX*! 5Id.G*! MarylandDUfm`UbX ! allowedU``ckYX ! htaxpayersUldUmYfg! htoc ! claimW`U]a! aU ! creditWfYX]h ! forZcf ! htaxesUlYg! dpaidU]X ! htoc ! otherch\Yf ! states,ghUhYg(! butVih ! onlycb`m! againstU[U]bgh hthe\Y "state"sghUhYt htaxUlr —notbch hthe\Y "county"sWcibhmt tax.hUl* 5Id.G( !DMarylandUfm`UbX !fresidentsYg]XYbhg! werekYfY !hthus\ig! subjectgiV^YWh !tohc! XdoubleciV`Y! htaxationUlUh]cb! oncb! htheir\Y]f !income]bWcaY! earnedYUfbYX !in]b! otherch\Yf ! states.ghUhYg*! Income@bWcaY! waskUg! taxedhUlYX !byVm !theh\Y! otherch\Yf !stateghUhY! viaj]U hthat\Uh state'sghUhYvg htaxationUlUh]cb regimefY[]aY ! andUbX ! MarylandDUfm`UbX ! viaj]U ! its]hg! flatZ`Uh ! ratefUhY ! countyWcibhm! htax.Ul*! DMarylandUfm`UbX ! alsoU`gc ! htaxedUlYX ! theh\Y! income]bWcaY! ofcZ ! nonresidents.bcbfYg]XYbhg*! 5Id.G*! ENonresidentscbfYg]XYbhg! dpaidU]X ! hthe\Y ! stateghUhY! income]bWcaY !htaxUl! oncb! allU``! income]bWcaY !hthey\Ym! YearnedUfbYX !withink]h\]b! Maryland.DUfm`UbX*! 5Id.G*! TheyK\Ym! alsoU`gc! had\UX htoc dpayUm aU "specialsgdYW]U` nonresidentbcbfYg]XYbh htax"Ult instead]bghYUX ofcZ theh\Y countyWcibhm htax.Ul* 5Id.G*! ThisK\]g! taxhUl! waskUg! equivalentYei]jU`Ybh !htoc! hthe\Y! lowest`ckYgh !Wcountycibhm! ]incomebWcaY! taxhUl !frate.UhY*! 5Id.G*! TheK\Y! WynnesNmbbYg! claimedW`U]aYX ! hthat\Uh ! hthis\]g! systemgmghYa ! violatedj]c`UhYX ! theh\Y! Dormant;cfaUbh ! 9CommercecaaYfWY! 9Clause.`UigY*! ! x¶32.- TheK\Y !SupremeJidfYaY !Court9cifh !agreed.U[fYYX*! As7g! aU !hthreshold\fYg\c`X !amatterUhhYf !hthe\Y! 9Courtcifh ! notedbchYX ! hthat\Uh ! "its]h! is]g! hard\UfX ! htoc! seegYY ! whyk\m! hthe\Y! XdormantcfaUbh ! Commerce9caaYfWY! Clause9`UigY ! shouldg\ci`X ! treathfYUh ! individuals]bX]j]XiU`g! less`Ygg! favorablyZUjcfUV`m! hthan\Ub! corporations."WcfdcfUh]cbg*t! 5Id.G*! atUh ! 1797.,242*! It@h !hthus\ig! concluded,WcbW`iXYX(! withk]h\! little`]hh`Y! analysis,UbU`mg]g(! thath\Uh !]individualsbX]j]XiU`g! areUfY! alsoU`gc! dprotectedfchYWhYX ! byVm! theh\Y! Dormant;cfaUbh ! 9CommercecaaYfWY ! Clause9`UigYr — evenYjYb! hthough\ci[\! hthe\Y! 9Courtcifh !had\UX !dpreviouslyfYj]cig`m! neverbYjYf !explicitlyYld`]W]h`m! held\Y`X !asUg! much.aiW\*61 !TheK\Y !Wynnes,NmbbYg(! asUg!

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61 !TheK\Y! WynneC\QQH! caseWUgY ! is]g! aU ! XdepartureYdUfhifY! fromZfca! hthe\Y! 9Court'scifhvg dpreviousfYj]cig! dpositioncg]h]cb hthat\Uh anUb individual's]bX]j]XiU`vg residencefYg]XYbWY in]b aU stateghUhY subjectedgiV^YWhYX him,\]a( ]inb full,Zi``( htoc hthat\Uh state'sghUhYvg htaxationUlUh]cb regime.fY[]aY* Indeed,@bXYYX( asUg hthe\Y! dprincipalf]bW]dU`! Xdissent]ggYbh ! noted,bchYX( "thesh\Y sheerg\YYf volumejc`iaY andUbX consistencyWcbg]ghYbWm ofcZ [theRh\Y! Court's]9cifhvgS dprecedentfYWYXYbh confirmsWcbZ]fag! .*! .*! .*! hthe\Y ! XdegreeY[fYY! htoc! whichk\]W\ ! hthis\]g! 9Courtcifh ! has\Ugr — iuntilbh]`! nowbckr — endorsedYbXcfgYX !hthe\Y !well-establishedkY``)YghUV`]g\YX !dprinciplef]bW]d`Y !.*! .*! .*! hthat\Uh !aU !StateJhUhY! amayUm! htaxUl! its]hg! &(continuedWcbh]biYX !.*! .*! .)*' ! 94! ! STEINERJK<@E

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT! residents'fYg]XYbhgv ! worldwidekcf`Xk]XY! income,]bWcaY(! withoutk]h\cih ! restrictionfYghf]Wh]cb! arisingUf]g]b[! fromZfca! hthe\Y! source-basedgcifWY)VUgYX ! htaxesUlYg! imposed]adcgYX ! byVm! otherch\Yf ! StatesJhUhYg! andUbX ! regardlessfY[UfX`Ygg! ofcZ ! whetherk\Yh\Yf ! theh\Y! StateJhUhY! alsoU`gc ! choosesW\ccgYg! tohc! ]imposeadcgY! source-basedgcifWY)VUgYX ! htaxesUlYg! ofcZ ! its]hg! own."ckb*t /ComptrollerRPSWUROOHU! ofRI! WtheKH! @TreasuryUHDVXU\! ofRI! 9Md.G( ! v.Y( ! Wynne,C\QQH(! 135,.0! S.J*! 9Ct.h*! 1787,,232(! 1818,3,3! &(2015)-+,0' !&(Ginsburg,>]bgVif[(! J.,A*(! Xdissenting)]ggYbh]b[' !&(citationW]hUh]cb! andUbX !internal]bhYfbU`! quotationeichUh]cb! amarksUf_g! omitted).ca]hhYX'*! !

27! WeNY! flagZ`U[! hthis\]g! dpointc]bh !withoutk]h\cih ! conclusivelyWcbW`ig]jY`m! fresolvingYgc`j]b[! it.]h*! WeNY! needbYYX ! notbch ! XdecideYW]XY! whetherk\Yh\Yf ! WynneC\QQH! Xdispensed]gdYbgYX ! withk]h\! /CompleteRPSOHWH! -AutoXWR! VbecauseYWUigY! onlycb`m! theh\Y! fairZU]f !apportionmentUddcfh]cbaYbh !dprongfcb[! is]g! atUh! issue]ggiY! in]b! hthis\]g! case.WUgY*!

10,+! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! 5Id.G*! atUh !1803-04.,3+.q+/*! Based8UgYX !oncb! hthis\]g! \hypothetical,mdch\Yh]WU`(! hthe\Y! 9Courtcifh !XdeterminedYhYfa]bYX !hthat\Uh ! hthe\Y! MarylandDUfm`UbX ! htaxUl ! systematicallygmghYaUh]WU``m! Xdiscriminated]gWf]a]bUhYX ! againstU[U]bgh ! ]interstatebhYfghUhY! commerceWcaaYfWY ! andUbX ! hthus\ig! failedZU]`YX ! hthe\Y! internal]bhYfbU`! consistencyWcbg]ghYbWm! htest.Ygh*! 5Id.G( ! atUh !1803.,3+.*! And7bX !in]b! light`][\h !ofcZ !thish\]g! failure,ZU]`ifY(! hthe\Y! Court9cifh !held\Y`X hthat\Uh DMaryland'sUfm`UbXvg htaxUl failedZU]`YX htoc !survivegifj]jY! hthe\Y !Dormant;cfaUbh !9CommercecaaYfWY! Clause9`UigY! challenge.W\U``Yb[Y*! 5Id.G*83 !! x¶35.0 SoJc farZUf sogc [good.ccX* Because8YWUigY DMaryland'sUfm`UbXvg htaxUl failedZU]`YX hthe\Y ]internalbhYfbU` consistencyWcbg]ghYbWm! htest,Ygh(! hthe\Y! SupremeJidfYaY! 9Courtcifh ! needbYYX ! notbch ! have\UjY! freachedYUW\YX ! theh\Y! externalYlhYfbU`! consistencyWcbg]ghYbWm! htestYgh !sinceg]bWY! aU !failureZU]`ifY! oncb! eitherY]h\Yf !dprongfcb[! wouldkci`X !have\UjY! beenVYYb! Xdeterminative.YhYfa]bUh]jY*! But8ih ! hthe\Y! 9Courtcifh ! wentkYbh ! oncb! tohc! dproposefcdcgY! aU ! dpotentialchYbh]U`! solutiongc`ih]cb! tohc Maryland'sDUfm`UbXvg dproblem.fcV`Ya*! Significantly,J][b]Z]WUbh`m(! hthe\Y! 9Court'scifhvg dproposedfcdcgYX ! solutiongc`ih]cb! is]g! onecbY !hthat\Uh! wouldkci`X !failZU]`! hthe\Y! externalYlhYfbU`! Wconsistencycbg]ghYbWm! htest.Ygh*! ! x¶36.1 TheK\Y ! WynneC\QQH! 9Courtcifh ! suggestedgi[[YghYX ! hthat\Uh ! MarylandDUfm`UbX ! couldWci`X ! fixZ]l! hthe\Y! dproblemfcV`Ya! withk]h\! ]itshg! htaxUl! WcodecXY! byVm! eliminatingY`]a]bUh]b[! hthe\Y! specialgdYW]U`! nonresidentbcbfYg]XYbh !htax,Ul(! butVih continuingWcbh]bi]b[ htoc htaxUl allU`` ofcZ its]hg fresidents'Yg]XYbhgv income]bWcaY regardlessfY[UfX`Ygg ofcZ source.gcifWY* ! 5Id.G( ! atUh ! 1806.,3+1*! YetPYh ! hthis\]g! solutiongc`ih]cb! wouldkci`X ! failZU]`! hthe\Y! externalYlhYfbU`! consistencyWcbg]ghYbWm! requirement.fYei]fYaYbh*! TheK\Y! dproposedfcdcgYX ! systemgmghYa! wouldkci`X ! allowU``ck! DMarylandUfm`UbX ! htoc! `levyYjm! hthe\Y! countyWcibhm ! taxhUl! oncb! 100,++ ! dpercentYfWYbh ! ofcZ its]hg residents'fYg]XYbhgv ]incomebWcaY [generatedYbYfUhYX outsidecihg]XY! ofcZ ! DMaryland.Ufm`UbX*! MarylandDUfm`UbX ! wouldkci`X ! apportionUddcfh]cb! nonebcbY ! ofcZ ! hthis\]g! income]bWcaY! htoc! otherch\Yf !states.ghUhYg*! 9Crucially,fiW]U``m(! itLW !wouldZRXOG !QnotRW! evenHYHQ !haveKDYH! WtoR! grantJUDQW !aD! FcreditUHGLW ! IforRU! WtaxesD[HV ! SpaidDLG ! WtoR! otherRWKHU! statesVWDWHV ! &(asUg! `longcb[! asUg! it]h ! Xdidn't]Xbvh ! htaxUl! nonresidents).bcbfYg]XYbhg'*94 ! ThisK\]g "wouldskci`X seemgYYa tohc squarelygeiUfY`m violatej]c`UhY hthe\Y YexternallhYfbU` consistencyWcbg]ghYbWm htest,"Ygh(t whichk\]W\! frequiresYei]fYg! statesghUhYg! tohc! apportionUddcfh]cb! income]bWcaY! suchgiW\! hthat\Uh ! it]h !"reflect[s]sfYZ`YWhRgS aU reasonablefYUgcbUV`Y sensegYbgY ofcZ how\ck ]incomebWcaY is]g [generated."YbYfUhYX*t ! 0DormantRUPDQW ! /CommerceRPPHUFH! /ClauseODXVH_ — =PersonalHUVRQDO ! 5IncomeQFRPH! @TaxationD[DWLRQ _— 9Comptrollercadhfc``Yf ! ofcZ ! hthe\Y! TreasuryKfYUgifm! ofcZ ! DMarylandUfm`UbX !v.j*! Wynne,NmbbY(! 129,-4! HARV.?7IM*! CL.*! IREV.

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83 !ThisK\]g! XdespiteYgd]hY! hthe\Y ! factZUWh ! hthat\Uh ! hthe\Y! 9Courtcifh ! had\UX ! iupheldd\Y`X ! ]internallybhYfbU``m! inconsistent]bWcbg]ghYbh !stateghUhY! htaxesUlYg! before.VYZcfY*! ?See,HH& !e.g.,H(J(& !-Am.P( !@TruckingUXFNLQJ! -Ass'nsVVbQV !v.Y( !9Mich.LFK( ! =Pub.XE( ?Serv.HUY( /Comm'n,RPPbQ(! 5450/0! U.S.L*J*! 429,/-4(! 437/.2! &(2005);-++0'6! ?ShafferKDIIHU! v.Y(! /Carter,DUWHU(! 252-0-! U.S.L*J*! 37,.2(! 5702! (1920).&,4-+'*! SoJc !muchaiW\! forZcf !Wconsistency.cbg]ghYbWm*! !

94 !As7g! long`cb[! asUg! MarylandDUfm`UbX ! htaxesUlYg! onlycb`m! fresidents,Yg]XYbhg(! hthe\Y! htaxUl! systemgmghYa! ]isg! internally]bhYfbU``m! consistent.Wcbg]ghYbh*! If@Z ! everyYjYfm! stateghUhY! htaxedUlYX ! basedVUgYX ! onlycb`m ! oncb! fresidencyYg]XYbWm! &(andUbX ! notbch ! basedVUgYX ! oncb! hthe\Y! sourcegcifWY ! ofcZ ! hthe\Y! ]income),bWcaY'(! hthere\YfY! wouldkci`X ! beVY! nobc! Xdiscrimination]gWf]a]bUh]cb! againstU[U]bgh !interstate]bhYfghUhY! commerce.WcaaYfWY*! A7 !dpersonYfgcb! `living]j]b[! in]b! StateJhUhY! A7 !wouldkci`X !dpayUm! onlycb`m! StateJhUhY! A7! htaxes,UlYg(! andUbX !aU !dpersonYfgcb! living`]j]b[! in]b! StateJhUhY !8B! wouldkci`X ! dpayUm! onlycb`m! StateJhUhY! 8B! htaxes.UlYg*! ThereK\YfY! wouldkci`X !VbeY! nobc! Xdiffering]ZZYf]b[! htaxUl! burdenVifXYb! basedVUgYX ! oncb! hthe\Y !interstate]bhYfghUhY! naturebUhifY! ofcZ !hthe\Y! ]income.bWcaY*! !

11,,! ! STEINERJK<@E

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT! 10,+ !Although7`h\ci[\! wekY! areUfY ! iunawarebUkUfY! ofcZ ! anyUbm! ^judicialiX]W]U`! opinionscd]b]cbg! freachingYUW\]b[! hthis\]g! dprecisefYW]gY ! conclusion,WcbW`ig]cb(! hthere\YfY! is]g! significantg][b]Z]WUbh ! scholarlygW\c`Uf`m! commentaryWcaaYbhUfm! alongU`cb[! hthese\YgY ! lines.`]bYg*! ?See,HH& ! e.g.,H(J((! DMackenzieUW_Ybn]Y! Catherine9Uh\Yf]bY! Schott,JW\chh(! 9Comment,caaYbh(! 5InconsistencyQFRQVLVWHQF\! withZLWK! WtheKH! 5InternalQWHUQDO ! /ConsistencyRQVLVWHQF\! @Test,HVW(! 7722 ! CLA.7*! CL.*! IREV.

12,-! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! x¶41/, WeNY! iupholdd\c`X ! theh\Y! constitutionalityWcbgh]hih]cbU`]hm! ofcZ ! hthe\Y! UtahLhU\! htaxUl! schemegW\YaY ! atUh ! issue]ggiY !iunderbXYf !hthese\YgY! dprinciples.f]bW]d`Yg*! 8BecauseYWUigY Utah'sLhU\vg taxhUl systemgmghYa is]g ]internallybhYfbU``m consistent,Wcbg]ghYbh(! wekY! hold\c`X ! thath\Uh ! theh\Y SteinersJhY]bYfgv ;DormantcfaUbh 9CommercecaaYfWY Clause9`UigY challengeW\U``Yb[Y! failsZU]`g! oncb! hthe\Y! amerits.Yf]hg*! x¶42/- For=cf ! theh\Y yearsmYUfg in]b question,eiYgh]cb( UtahLhU\ htaxedUlYX its]hg fresidents'Yg]XYbhgv stateghUhY htaxableUlUV`Y !income]bWcaY! atUh !aU !ratefUhY! ofcZ !50! dpercent.YfWYbh*! UTAHLK7?! CODE9F;< !§v! 59-10-10404),+),+/ !(2013).&-+,.'*! UtahLhU\ !residentsfYg]XYbhg! whok\c! dpaidU]X ! income]bWcaY ! htaxesUlYg! ]inb! otherch\Yf !statesghUhYg! couldWci`X ! htakeU_Y! aU ! creditWfYX]h !againstU[U]bgh ! htheir\Y]f ! UtahLhU\! taxeshUlYg! in]b! theh\Y! amountUacibh ! ofcZ ! htaxesUlYg! hthey\Ym! dpaidU]X ! htoc! otherch\Yf ! states,ghUhYg(! iupd! htoc! theh\Y ! amountUacibh ! hthat\Uh ! theyh\Ym! wouldkci`X ! have\UjY ! dpaidU]X ! iunderbXYf ! Utah'sLhU\vg htaxUl frate.UhY* 5Id.G*! §v! 59-10-1003.04),+),++.*! ENonresidentscbfYg]XYbhg! werekYfY! alsoU`gc! taxedhUlYX !atUh !hthe\Y! samegUaY! ratefUhY !ofcZ !50! dpercent,YfWYbh(! butVih !onlycb`m! oncb! htheir\Y]f !income]bWcaY! earnedYUfbYX !in]b! Utah.LhU\*! 5Id.G*! §v ! 59-10-103(1)(w),04),+),+.&,'&k'(! -104(2),),+/&-'(! -116.),,1* ! x¶43/. ThisK\]g! arrangementUffUb[YaYbh !satisfiesgUh]gZ]Yg! Wynne'sC\QQHvg internal]bhYfbU` consistencyWcbg]ghYbWm htest.Ygh* If@Z !everyYjYfm !stateghUhY !adoptedUXcdhYX !hthe\Y! samegUaY! htaxUl! systemgmghYa! asUg! Utah,LhU\(! hthere\YfY !wouldkci`X !beVY! nobc! Xdiscrimination]gWf]a]bUh]cb! againstU[U]bgh ! interstate]bhYfghUhY! commerce.WcaaYfWY*! April7df]`! andUbX ! 8BobcV! &(ourcif ! hypothetical\mdch\Yh]WU`! htaxpayers)UldUmYfg' r— whok\c! areUfY! bothVch\! residentsfYg]XYbhg! ofcZ !StateJhUhY! A7 r— dpayUm! theh\Y! samegUaY! htaxUl! evenYjYb! hthough\ci[\! April7df]`! earnsYUfbg! her\Yf ! income]bWcaY! ]inb! StateJhUhY! A7 ! andUbX ! Bob8cV! earnsYUfbg! his\]g! in]b! StateJhUhY !8B.*! April7df]`! willk]``! dpayUm! aU !50! dpercentYfWYbh !htaxUl! htoc! StateJhUhY! A7 !oncb! her\Yf ! income]bWcaY ! becauseVYWUigY ! sheg\Y ! residesfYg]XYg! hthere.\YfY*! Bob8cV! willk]``! dpayUm! aU ! 50! dpercentYfWYbh ! htaxUl ! htoc! StateJhUhY! A7! becauseVYWUigY! he\Y ! residesfYg]XYg! hthere\YfY! andUbX ! aU ! 50! dpercentYfWYbh ! taxhUl! htoc! StateJhUhY! 8B! becauseVYWUigY! he\Y! earnsYUfbg! income]bWcaY! hthere,\YfY(! butVih !he\Y! willk]``! receivefYWY]jY !aU !creditWfYX]h !]inb! StateJhUhY! A7 ! forZcf !hthe\Y! 50! dpercentYfWYbh !taxhUl! dpaidU]X !tohc! StateJhUhY! 8B.*! CLike]_Y !April,7df]`(! he\Y! willk]``! beVY !taxedhUlYX !onlycb`m! oncecbWY !oncb! his\]g! income.]bWcaY*! Bob8cV! XdoescYg! notbch !shoulderg\ci`XYf !aU !higher\][\Yf !taxhUl! burdenVifXYb! evenYjYb! hthough\ci[\! he\Y! earnsYUfbg! his\]g! income]bWcaY! ]inb! interstate]bhYfghUhY! commerce.WcaaYfWY*11,, !ThisK\]g! conclusionWcbW`ig]cb! is]g! bolsteredVc`ghYfYX !byVm! hthe\Y! WynneC\QQH! majority'saU^cf]hmvg statementghUhYaYbh hthat\Uh "MarylandsDUfm`UbX !Wcouldci`X ! cureWifY! theh\Y! dproblemfcV`Ya! withk]h\! its]hg! currentWiffYbh ! systemgmghYa! byVm! [grantingfUbh]b[! aU ! WcreditfYX]h! forZcf ! htaxesUlYg! dpaidU]X ! tohc! otherch\Yf !States."JhUhYg*t 135,.0 S.J* 9Ct.h* atUh 1806.,3+1* ThisK\]g ]isg exactlyYlUWh`m whatk\Uh UtahLhU\ !Xdoes.cYg*! ! x¶44// Utah'sLhU\vg htaxUl codeWcXY thush\ig satisfiesgUh]gZ]Yg hthe\Y internal]bhYfbU` consistencyWcbg]ghYbWm test.hYgh* In@b Wynne,C\QQH(! hthe\Y! SupremeJidfYaY ! 9Courtcifh ! XdeclinedYW`]bYX ! htoc ! requirefYei]fY! anythingUbmh\]b[! elseY`gY ! ofcZ ! Maryland'sDUfm`UbXvg tax.hUl* WeNY accordinglyUWWcfX]b[`m applyUdd`m WynneC\QQH! andUbX ! concludeWcbW`iXY! hthat\Uh ! aU !

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT! 11,, !It@h !is]g! truehfiY! thath\Uh !somegcaY !statesghUhYg! have\UjY! aU !0+ !dpercentYfWYbh !]incomebWcaY! tax,hUl(! andUbX !nobc! creditWfYX]h !againstU[U]bgh !UtahLhU\! taxeshUlYg! is]g! hthus\ig! availableUjU]`UV`Y !forZcf !income]bWcaY! YearnedUfbYX !in]b! thoseh\cgY! statesghUhYg! (because&VYWUigY! nobc ! htaxesUlYg! areUfY! dpaidU]X ! htoc! hthose\cgY! states).ghUhYg'*! 8Butih ! hthis\]g! is]g! immaterial]aaUhYf]U` ! tohc! theh\Y! analysis.UbU`mg]g*! @InternalbhYfbU`! consistencyWcbg]ghYbWm ! analyzesUbU`mnYg! onlycb`m! hthe\Y! effectsYZZYWhg! ofcZ !aU !state'sghUhYvg ownRZQ !htaxUl system.gmghYa* TheK\Y factZUWh thath\Uh aU [given]jYb state'sghUhYvg systemgmghYa amight][\h ! [generateYbYfUhY! oddcXX ! resultsfYgi`hg! becauseVYWUigY! ofcZ ! ]itshg! ]interactionbhYfUWh]cb! withk]h\! theh\Y! systemsgmghYag! ofcZ !otherRWKHU! statesghUhYg! is]g! irrelevant.]ffY`YjUbh*! ?SeeHH!

13,.! ! STEINERJK<@E1/@B v.Y( UtahAWDK ?StateWDWH @TaxD[ /Comm'n,RPPbQ(! 2015-+,0! UTLK! 93,4.(! x¶! 46,/1(! 364.1/ !P.3dG*.X !1036.,+.1*! TheK\Y ! dprotectionsfchYWh]cbg! ofcZ ! hthe\Y! Dormant;cfaUbh ! Foreign=cfY][b! Commerce9caaYfWY! Clause9`UigY! have\UjY! beenVYYb! YextendedlhYbXYX !onlycb`m! tohc! corporations.WcfdcfUh]cbg*! And7bX !evenYjYb! if]Z !hthe\Y !clauseW`UigY! Xdid]X !applyUdd`m! htoc !hthe\Y! Steiners,JhY]bYfg(! hthe\Y! frequirementsYei]fYaYbhg! areUfY! ametYh !here.\YfY*! Accordingly,7WWcfX]b[`m(! wekY! hold\c`X ! hthat\Uh! Utah'sLhU\vg taxhUl systemgmghYa XdoescYg notbch runfib afoulUZci` ofcZ hthe\Y Dormant;cfaUbh Foreign=cfY][b 9CommercecaaYfWY! Clause.9`UigY*14,/ !!

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT! 12,- !As7g! Xdiscussed]gWiggYX !dpreviously,fYj]cig`m(! onlycb`m! theh\Y! fairZU]f !apportionmentUddcfh]cbaYbh !dprongfcb[! ofcZ ! hthe\Y! /CompleteRPSOHWH! -AutoXWR! htestYgh !is]g! atUh !issue]ggiY! beforeVYZcfY! ius.g*! SoJc !althoughU`h\ci[\! aU !fairZU]f !freadingYUX]b[! ofcZ !WynneC\QQH! ]isg! hthat\Uh !it]h !amayUm! have\UjY !Xdiscarded]gWUfXYX !thath\Uh !testhYgh !entirely,Ybh]fY`m(! wekY !bneedYYX !notbch ! XdecideYW]XY! theh\Y! issue.]ggiY*! It@h !is]g! enoughYbci[\! forZcf !ourcif !dpurposesifdcgYg! htoc! concludeWcbW`iXY! hthat\Uh! afterUZhYf ! Wynne,C\QQH( "fairsZU]f apportionment"Uddcfh]cbaYbht ameansYUbg hthe\Y samegUaY asUg "internals]bhYfbU` consistency"Wcbg]ghYbWmt in]b hthis\]g context.WcbhYlh* !

13,. !TheK\Y! Dormant;cfaUbh ! Foreign=cfY][b! 9CommercecaaYfWY ! Clause9`UigY! is]g! analogousUbU`c[cig! htoc! hthe\Y! Dormant;cfaUbh ! 9CommercecaaYfWY ! Clause.9`UigY*! 8Butih ! whereask\YfYUg! hthe\Y! `latterUhhYf ! is]g! XderivedYf]jYX ! byVm! negativebY[Uh]jY! implication]ad`]WUh]cb! fromZfca! hthe\Y !Commerce9caaYfWY !9Clause,`UigY(! hthe\Y !formerZcfaYf !findsZ]bXg! its]hg! footingZcch]b[! &(orcf !lack`UW_ !hthereof)\YfYcZ' !]inb! hthe\Y! Foreign=cfY][b! 9CommercecaaYfWY !9Clause.`UigY*! ! 14,/ !WeNY reviewfYj]Yk hthe\Y htaxUl court'sWcifhvg [grantfUbh ofcZ summarygiaaUfm ^judgmentiX[aYbh forZcf correctness.WcffYWhbYgg*! ?SaltDOW !8LakeDNH! /Cty.W\( !v.Y(! 4HollidayROOLGD\! WaterCDWHU! /Co.,R((! 2010-+,+! UTLK !45,/0(! x¶! 14,,/(! 234-./! GP.3d*.X !1105.,,+0*!

14,/ ! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! 1,! x¶46/1 ENoc! SupremeJidfYaY! 9Courtcifh ! caseWUgY ! consideringWcbg]XYf]b[! hthe\Y ! Dormant;cfaUbh ! Foreign=cfY][b! 9CommercecaaYfWY! 9Clause`UigY! has\Ug! involved]bjc`jYX ! anUb! individual]bX]j]XiU`! htaxpayerUldUmYf ! &(orcf ! SJ! corporationWcfdcfUh]cb! shareholder).g\UfY\c`XYf'*! TheyK\Ym! have\UjY! allU``! involved]bjc`jYX !9C15,0 !corporations.WcfdcfUh]cbg*16,1 ! TheK\Y ! SupremeJidfYaY! Court9cifh ! has\Ug! neverbYjYf ! indicated]bX]WUhYX ! hthat\Uh ! aU ! stateghUhY r— htaxingUl]b[! anUb! individualLQGLYLGXDO !basedVUgYX !oncb! his\]g! residencyfYg]XYbWm !in]b! hthat\Uh !stateghUhY r— couldWci`X !frunib! afoulUZci`! ofcZ !hthe\Y! 9Constitutioncbgh]hih]cb! byVm! failingZU]`]b[! htoc! [grantfUbh !aU !taxhUl !creditWfYX]h! againstU[U]bgh !taxeshUlYg! `leviedYj]YX !byVm! foreignZcfY][b! countries.Wcibhf]Yg*! UnderLbXYf ! hthe\Y! dprinciplesf]bW]d`Yg! wekY! articulatedUfh]Wi`UhYX !in]b! 0DIRECTV5>1/@B! hthat\Uh! aloneU`cbY! is]g! enoughYbci[\! htoc! endYbX ! hthe\Y! inquiry.]bei]fm*! WeNY ! couldWci`X ! concludeWcbW`iXY ! otherwisech\Yfk]gY! onlycb`m! byVm! transplantinghfUbgd`Ubh]b[! WynneC\QQH! into]bhc ! theh\Y! Court's9cifhvg foreignZcfY][b! commerceWcaaYfWY !clauseW`UigY! jurisprudence.^if]gdfiXYbWY*! But8ih !wekY! findZ]bX !nobc! establishedYghUV`]g\YX !basisVUg]g! forZcf ! WynneC\QQH! htoc! beVY! YextendedlhYbXYX !into]bhc! hthis\]g! area.UfYU*! ! x¶47/2 As7g! Xdiscussed]gWiggYX !above,UVcjY(! WynneC\QQH! established—forYghUV`]g\YXrZcf !hthe\Y! firstZ]fgh !htime—]aYr hthat\Uh! aU !stateghUhY! htaxUl! levied`Yj]YX !againstU[U]bgh !anUb! individual]bX]j]XiU`! whok\c! fresidedYg]XYX !]inb! thath\Uh !stateghUhY! waskUg! subjectgiV^YWh ! htoc ! hthe\Y ! Dormant;cfaUbh ! 9CommercecaaYfWY! 9Clause.`UigY*! ?SupraXSUD! x¶! 32..-*! JusticeAigh]WY ! Alito,7`]hc(! writingkf]h]b[! forZcf ! hthe\Y! Court,9cifh( notedbchYX hthat\Uh "its]h is]g hard\UfX htoc seegYY whyk\m hthe\Y XdormantcfaUbh ! Commerce9caaYfWY ! Clause9`UigY! shouldg\ci`X ! htreatfYUh ! individuals]bX]j]XiU`g! less`Ygg! favorablyZUjcfUV`m! hthan\Ub corporations."WcfdcfUh]cbg*t /ComptrollerRPSWUROOHU !ofRI! WtheKH! @TreasuryUHDVXU\! ofRI! 9Md.G( !v.Y( !Wynne,C\QQH(! 135,.0! S.J*! 9Ct.h*! 1787,,232(! 1797,242! &(2015).-+,0'*! Crucially,9fiW]U``m(! however,\ckYjYf(! hthe\Y! 9Courtcifh ! appliedUdd`]YX ! aU ! Xdifferent]ZZYfYbh !XdoctrinalcWhf]bU`! frameworkZfUaYkcf_! htoc! hthe\Y! ]individualbX]j]XiU`! htaxpayersUldUmYfg! in]b! WynneC\QQH! hthan\Ub! hthe\Y !onecbY !dpreviouslyfYj]cig`m !appliedUdd`]YX !htoc !corporations.WcfdcfUh]cbg*! !! x¶48/3 WynneC\QQH! adoptedUXcdhYX ! hthe\Y! ]internalbhYfbU`! consistencyWcbg]ghYbWm! testhYgh! asUg! aU ! freestandingZfYYghUbX]b[! constitutionalWcbgh]hih]cbU`! frequirement.Yei]fYaYbh*! 5Id.G*! atUh !1803.,3+.*! @Inb! its]hg! dpreviousfYj]cig! cases,WUgYg(! however,\ckYjYf(! theh\Y! Court9cifh !appliedUdd`]YX !hthis\]g! testhYgh !asUg! onecbY !dpartUfh !ofcZ !hthe\Y! VbroaderfcUXYf ! /CompleteRPSOHWH! -AutoXWR! framework.ZfUaYkcf_*! ?See,HH& !e.g.,H(J((! 0D.H.(4( !4HolmesROPHV !/Co.R( !v.Y(! 9McNamara,F;DPDUD(! 486/31! U.S.L*J*! 24,-/(! 30.+ !(1988).&,433'* !And7bX what'sk\Uhvg more,acfY( hthe\Y failureZU]`ifY ofcZ aU htaxUl htoc dpassUgg hthe\Y internal]bhYfbU`! consistencyWcbg]ghYbWm! htestYgh ! waskUg! notbch ! dpreviouslyfYj]cig`m! fatal.ZUhU`*! ?See,HH& ! e.g.,H(J((! -Am.P( ! @TruckingUXFNLQJ! -Ass'nsVVbQV! v.Y(! 9Mich.LFK( =Pub.XE( ?Serv.HUY( /Comm'n,RPPbQ(! 5450/0! U.S.L*J*! 429,/-4(! 437/.2! &(2005);-++0'6! ?ShafferKDIIHU ! v.Y(! /Carter,DUWHU(! 252-0-! U.S.L*J*! 37,.2(! 5702! &(1920).,4-+'*! ThusK\ig! XdespiteYgd]hY! hthe\Y! 9Court'scifhvg TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT!

15,0 !C9! corporationsWcfdcfUh]cbg! fileZ]`Y! corporateWcfdcfUhY! htaxUl !returnsfYhifbg! andUbX ! dpayUm! federalZYXYfU`! andUbX ! stateghUhY! corporate-levelWcfdcfUhY)`YjY` htaxesUlYg oncb hthe\Y entity'sYbh]hmvg businessVig]bYgg andUbX non-businessbcb)Vig]bYgg! income.]bWcaY*! 26-1! U.S.C.L*J*9*! §v! 11;,,6! UTAHLK7?! 9CODEF;< !§v! 59-7-10104)2),+,! etHW !Vseq.HT*!

16,1 !See?HH! .BarclaysDUFOD\V !.BankDQN !=PLC8/! v.Y( !2FranchiseUDQFKLVH! @TaxD[ !.Bd.G( !RevenueHYHQXH &$ 2Fin,LQ& ! 5050+0! U.S.L*J*! 271,! &(1992);,44-'6! WardairCDUGDLU! /Canada,DQDGD& ! 5Inc.QF( ! v.Y( ! 2Fla.OD( 0Dep'tHSbW ofRI >Revenue,HYHQXH(! 477/22! U.S.L*J*! 1,! (1986);&,431'6! /ContainerRQWDLQHU! /Corp.RUS( !ofRI! -Am.P( !v.Y( !2FranchiseUDQFKLVH! @TaxD[ !.Bd.,G(& !463/1.! U.S.L*J*! 159,04! &(1983);,43.'6! 9MobilRELO!

15,0! ! STEINERJK<@E1/@B(! 2015-+,0! UTLK! 93,4.(! x¶! 46./1*! ! ThisK\]g! dpracticalfUWh]WU`! dproblemfcV`Ya! is]g! amplyUad`m! ]illustrated``ighfUhYX byVm theh\Y Steiners'JhY]bYfgv ownckb briefing.Vf]YZ]b[*! In@b! seekinggYY_]b[! htoc ! extendYlhYbX ! WynneC\QQH! htoc! foreignZcfY][b! Wcommerce,caaYfWY(! hthe\Y! SteinersJhY]bYfg! attemptUhhYadh !tohc! applyUdd`m! hthe\Y! internal]bhYfbU`! consistencyWcbg]ghYbWm !htest.Ygh*! As7g! Xdiscussed,]gWiggYX(! hthis\]g! testhYgh ! requiresfYei]fYg! analyzingUbU`mn]b[! aU ! hypothetical\mdch\Yh]WU`! worldkcf`X ! in]b! whichk\]W\ ! allU`` ! ^jurisdictionsif]gX]Wh]cbg! have\UjY !hthe\Y! challengedW\U``Yb[YX !htaxUl !scheme.gW\YaY*! WeNY! hthen\Yb! wouldkci`X !assessUggYgg! if]Z !interstate]bhYfghUhY! commerceWcaaYfWY! suffersgiZZYfg! fromZfca! systematicgmghYaUh]W! Xdiscrimination]gWf]a]bUh]cb! in]b! thish\]g! alternateU`hYfbUhY ! world.kcf`X*! But8ih ! thish\]g! htestYgh ! is]g ! quiteei]hY! impossible]adcgg]V`Y! htoc! applyUdd`m ! in]b! anUb! international]bhYfbUh]cbU` ! setting.gYhh]b[*! Wynne'sC\QQHvg internal]bhYfbU` Wconsistencycbg]ghYbWm analysisUbU`mg]g contemplatedWcbhYad`UhYX !onlycb`m! state-levelghUhY)`YjY`! htaxesUlYg! withink]h\]b! aU !iuniformb]Zcfa! federalZYXYfU`! system.gmghYa*! And7bX ! theh\Y! international]bhYfbUh]cbU`! income]bWcaY! YearnedUfbYX ! byVm! theh\Y ! SteinersJhY]bYfg! is]g! subjectgiV^YWh ! htoc! amultiplei`h]d`Y! levels`YjY`g! ofcZ !foreignZcfY][b! htaxation—UlUh]cbr local,`cWU`(! subnational,giVbUh]cbU`(! andUbX !national.bUh]cbU`*! It@h !wouldkci`X !makeaU_Y! nobc !sensegYbgY htoc universalizeib]jYfgU`]nY Utah'sLhU\vg htaxUl systemgmghYa htoc conductWcbXiWh aU !WynneC\QQH! analysisUbU`mg]gr —UtahLhU\! is]g! aU !single,g]b[`Y(! subnationalgiVbUh]cbU`! htaxingUl]b[! ^jurisdiction.if]gX]Wh]cb*! ThereK\YfY !is]g! nobc! dproperfcdYf !basisVUg]g! htoc! compareWcadUfY! hthe\Y! effectYZZYWh !ofcZ !its]hg! htaxUl! systemgmghYa! withk]h\!

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT! 17,2 !ThisK\]g! Xdifficulty]ZZ]Wi`hm! is]g! exacerbatedYlUWYfVUhYX ! byVm! hthe\Y! factZUWh! hthat\Uh ! hthe\Y ! [governingcjYfb]b[! Dormant;cfaUbh ! Foreign=cfY][b! 9CommercecaaYfWY! 9Clause`UigY! frameworkZfUaYkcf_ ! ]isg! notbch ! identical]XYbh]WU`! tohc! hthe\Y! XdomesticcaYgh]W! framework.ZfUaYkcf_*! ?See,HH& !e.g.,H(J(& !5ItelWHO /ContainersRQWDLQHUV 5Int'lQWbO !/Corp.,RUS((! 5070+2! U.S.L*J*! atUh ! 273.! (noting&bch]b[! hthat\Uh ! /CompleteRPSOHWH! -AutoXWR! frameworkZfUaYkcf_ ]isg hthe\Y "domesticsXcaYgh]W commerceWcaaYfWY Wclause`UigY htest").Yght'* WeNY thush\ig Xdoc notbch know_bck (1)&,' how\ck theh\Y assessmentUggYggaYbh !ofcZ !anUb! individual]bX]j]XiU`! taxhUl !wouldkci`X !workkcf_ !asUg! aU !dpracticalfUWh]WU`! amatter;UhhYf6! orcf ! &(2)-' ! how\ck! it]h ! wouldkci`X ! workkcf_ ! asUg! aU ! XdoctrinalcWhf]bU` ! amatter.UhhYf*! WeNY! seegYY! nobc! basisVUg]g! forZcf ! stumblingghiaV`]b[! hthrough\fci[\! hthese\YgY! nestingbYgh]b[! `layersUmYfg! ofcZ ! iunknownsb_bckbg! iuntilbh]`! hthe\Y! SupremeJidfYaY! Court9cifh !lights`][\hg! theh\Y! way.kUm*! !

16,1! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! hthe\Y! effectYZZYWh ! ofcZ ! hthose\cgY! ofcZ ! foreignZcfY][b! ^jurisdictionsif]gX]Wh]cbg! YencompassingbWcadUgg]b[! amultiplei`h]d`Y! levels`YjY`g! ofcZ !htaxation.UlUh]cb*! ! x¶500+ @Inb! `light][\h ! ofcZ ! hthis\]g! iuncertainty,bWYfhU]bhm(! wekY! XdeclineYW`]bY! htoc "veer[]sjYYfRS! fromZfca! aU ! dprinciplef]bW]d`Y! ofcZ ! interstate]bhYfghUhY! andUbX ! international]bhYfbUh]cbU`! htaxationUlUh]cb! repeatedlyfYdYUhYX`m! acknowledgedUW_bck`YX[YX ! byVm! [theRh\Y SupremeJidfYaY 9Court]:cifhS5 A7 nationbUh]cb orcf StateJhUhY 'mayuaUm! htaxUl !allDOO !hthe\Y! income]bWcaY! ofcZ ! its]hg! fresidents,Yg]XYbhg(! YevenjYb! ]incomebWcaY ! earnedYUfbYX ! outsidecihg]XY! hthe\Y! htaxingUl]b[! jurisdiction."^if]gX]Wh]cb*vt ! Wynne,C\QQH(! 135,.0! S.J*! 9Ct.h*! atUh ! 1813,3,.! &(Ginsburg,>]bgVif[(! J.A*! Xdissenting)]ggYbh]b[' !(quoting&eich]b[! 1/@B(! 2015-+,0! UTLK! 93,4.(! x¶! 46./1*! WeNY !reversefYjYfgY! hthe\Y !taxhUl! courtWcifh! andUbX !hold\c`X !hthat\Uh !UtahLhU\! amayUm! htaxUl theh\Y Yentiretybh]fYhm ofcZ hthe\Y Steiners'JhY]bYfgv ! foreignZcfY][b! ]incomebWcaY! basedVUgYX ! oncb! htheir\Y]f ! residencyfYg]XYbWm! in]b! hthe\Y! state.ghUhY*! ! 2-! x¶510, Although7`h\ci[\! hthe\Y! SupremeJidfYaY! 9Courtcifh !has\Ug! neverbYjYf !articulatedUfh]Wi`UhYX !aU !testhYgh !forZcf ! aU ! residence-basedfYg]XYbWY)VUgYX individual]bX]j]XiU` income]bWcaY htax,Ul( Utah'sLhU\vg htaxUl is]g consistentWcbg]ghYbh withk]h\ !hthe\Y !broaderVfcUXYf !XdormantcfaUbh !foreignZcfY][b! commerceWcaaYfWY! dprinciplesf]bW]d`Yg! hthe\Y! Court9cifh !\hasUg! hinted\]bhYX !at.Uh*! First,=]fgh( Utah'sLhU\vg htaxUl codeWcXY ]interactsbhYfUWhg withk]h\ hthe\Y federalZYXYfU` taxhUl codeWcXY in]b aU !amannerUbbYf !hthat\Uh !`leadsYUXg! htoc! evenhandedYjYb\UbXYX !htreatmentfYUhaYbh !ofcZ !foreignZcfY][b! commerce.WcaaYfWY*! Second,JYWcbX( wekY canWUb ]inferbZYf hthat\Uh 9Congresscb[fYgg approvesUddfcjYg ofcZ Utah'sLhU\vg htaxUl systemgmghYa andUbX !has\Ug! thush\ig! authorizedUih\cf]nYX !it.]h*! ! x¶520- TheK\Y "foreignsZcfY][b commerceWcaaYfWY Wclause`UigY WcannotUbbch beVY interpreted]bhYfdfYhYX htoc XdemandYaUbX !hthat\Uh !aU !StateJhUhY! refrainfYZfU]b! fromZfca !taxinghUl]b[! anyUbm! businessVig]bYgg! htransactionfUbgUWh]cb! hthat\Uh ! is]g alsoU`gc dpotentiallychYbh]U``m subjectgiV^YWh htoc htaxationUlUh]cb byVm aU foreignZcfY][b sovereign."gcjYfY][b*t 5ItelWHO ! /ContainersRQWDLQHUV 5Int'lQWbO ! /Corp.RUS( ! v.Y(! 4Huddleston,XGGOHVWRQ(! 5070+2! U.S.L*J*! 60,1+(! 274/! &(1993).,44.'*! @Indeed,bXYYX(! "absolutesUVgc`ihY! consistency,Wcbg]ghYbWm(! evenYjYb! amongUacb[! htaxingUl]b[! authoritiesUih\cf]h]Yg! whosek\cgY! basicVUg]W! approachUddfcUW\! tohc! hthe\Y! htaskUg_ !is]g! quiteei]hY! similar,g]a]`Uf(! amayUm! just^igh !beVY! htoocc! amuchiW\! htoc! ask."Ug_*t /ContainerRQWDLQHU! /Corp.RUS( !ofRI! -Am.P( !v.Y( ! 2FranchiseUDQFKLVH! @TaxD[ ! .Bd.,G((! 463/1.! U.S.L*J*! 159,,04(! 192,4-! &(1983).,43.'*! ThereK\YfY ! is]g! alwaysU`kUmg! somegcaY! riskf]g_ ! ofcZ ! XdoubleciV`Y! htaxationUlUh]cb! in]b! hthe\Y! international]bhYfbUh]cbU`! realm.fYU`a*! MitigationD]h][Uh]cb! ofcZ ! hthis\]g! risk,f]g_(! however,\ckYjYf(! wouldkci`X ! frequireYei]fY! complexWcad`Yl! negotiationbY[ch]Uh]cb! withk]h\! foreignZcfY][b! nations—negotiationsbUh]cbgrbY[ch]Uh]cbg! thath\Uh !hthe\Y! StateJhUhY! ofcZ !UtahLhU\! is]g! legally`Y[U``m! andUbX !dpracticallyfUWh]WU``m !ill-equipped]``)Yei]ddYX !htoc! htackle.UW_`Y*! ! x¶530. ThisK\]g! is]g! aU !furtherZifh\Yf !indication]bX]WUh]cb! ofcZ !hthe\Y! needbYYX !forZcf !`leewayYYkUm! forZcf !statesghUhYg! in]b! hthe\Y! exerciseYlYfW]gY! ofcZ !htheir\Y]f !taxinghUl]b[! authorityUih\cf]hm! in]b! hthe\Y! shadowg\UXck! ofcZ !hthe\Y! Foreign=cfY][b! 9CommercecaaYfWY! 9Clause.`UigY*! ?SeeHH! id.LG( !atDW !192,4-! n.b*! 31.,! &(notingbch]b[ hthat\Uh "Californias9U`]Zcfb]U !.*! .*! .*! is]g! in]b! nobc! dpositioncg]h]cb! htoc! negotiatebY[ch]UhY! withk]h\! foreignZcfY][b! [governments,"cjYfbaYbhg(t andUbX hthus\ig thath\Uh ! hthe\Y! riskf]g_ ! ofcZ ! XdoubleciV`Y! taxationhUlUh]cb! waskUg! nobc! reasonfYUgcb! htoc! invalidate]bjU`]XUhY ! theh\Y! htax).Ul'*!

17,2! ! STEINERJK<@E

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT!

18,3 !It@h ! is]g! truehfiY! hthat\Uh ! hthe\Y! SupremeJidfYaY! 9Courtcifh ! has\Ug! dpreviouslyfYj]cig`m! statedghUhYX ! hthat\Uh ! hthere\YfY ]isg "nosbc authorityUih\cf]hm! .*! .*! .*! forZcf !hthe\Y! dprinciplef]bW]d`Y! hthat\Uh !Xdiscrimination]gWf]a]bUh]cb! againstU[U]bgh ! foreignZcfY][b! commerceWcaaYfWY ! canWUb! beVY! ^justifiedigh]Z]YX ! if]Z ! hthe\Y! benefitVYbYZ]h ! tohc ! XdomesticcaYgh]W! subsidiariesgiVg]X]Uf]Yg! amight][\h! happen\UddYb! htoc! beVY! offsetcZZgYh !byVm! otherch\Yf !taxeshUlYg! imposed]adcgYX !notbch !byVm! [theRh\Y! State],JhUhYS(! butVih ! byVm! .*! .*! .*! hthe\Y! Federal=YXYfU`! Government.">cjYfbaYbh*t! 7KraftUDIW ! Gen.3HQ( ! 2Foods,RRGV(! 5050+0! U.S.L*J*! atUh ! 81.3,*! 8Butih ! hthis\]g! waskUg! beforeVYZcfY! hthe\Y! 9Courtcifh ! articulatedUfh]Wi`UhYX ! theh\Y! dprinciplef]bW]d`Y! ofcZ ! dpassiveUgg]jY ! congressionalWcb[fYgg]cbU`! approval.UddfcjU`*! TheK\Y! interaction]bhYfUWh]cb! betweenVYhkYYb! federalZYXYfU`! andUbX ! stateghUhY! statutesghUhihYg! is]g! important]adcfhUbh! forZcf ! assessingUggYgg]b[! ]ifZ !9Congresscb[fYgg! has\Ug! VsubXE !VsilentioLOHQWLR! approvedUddfcjYX !aU !stateghUhY! `law.Uk*! !

19,4 !TheK\Y! Court9cifh ! amadeUXY! hthis\]g! statementghUhYaYbh ! in]b! hthe\Y! contextWcbhYlh ! ofcZ ! evaluatingYjU`iUh]b[! whetherk\Yh\Yf ! aU ! htaxUl ! impaired]adU]fYX ! hthe\Y! abilityUV]`]hm! ofcZ ! hthe\Y! federalZYXYfU`! [governmentcjYfbaYbh ! htoc! operatecdYfUhY! iuniformly.b]Zcfa`m*! ThisK\]g! is]g! ostensiblycghYbg]V`m! onecbY! ofcZ ! htwokc !additionalUXX]h]cbU`! dprongsfcb[g! &(continuedWcbh]biYX !.*! .*! .)*' ! 18,3! ! 9Cite]hY! as:Ug5! !2019-+,4! UTLK! TT! OpinionFd]b]cb! ofcZ !hthe\Y! 9Courtcifh !! ! amerelyYfY`m! has\Ug! foreignZcfY][b! resonances,fYgcbUbWYg(! Vbutih !XdoescYg! notbch !implicate]ad`]WUhY! foreignZcfY][b! affairs,UZZU]fg(! wekY !cannotWUbbch! ]infer,bZYf(! absentUVgYbh! somegcaY! Yexplicitld`]W]h !Xdirective]fYWh]jY! fromZfca! 9Congress"cb[fYggt hthat\Uh hthe\Y! statesghUhYg! amustigh ! conformWcbZcfa! htheir\Y]f ! htaxesUlYg! htoc! federalZYXYfU`! dpractice.fUWh]WY*! /ContainerRQWDLQHU! /Corp.RUS( !ofRI! -Am.,P((! 463/1.! U.S.L*J*! atUh !194,4/ ! &(internal]bhYfbU`! alterations,U`hYfUh]cbg(! equotationichUh]cb! amarks,Uf_g(! andUbX !citationsW]hUh]cbg! omitted).ca]hhYX'*! ! x¶5601 TheK\Y ! `lackUW_! ofcZ ! anUb! Yexplicitld`]W]h ! 9Congressionalcb[fYgg]cbU`! Xdirective]fYWh]jY! amayUm! hthus\ig! comeWcaY! closeW`cgY !tohc! htacitUW]h !approvalUddfcjU`! ofcZ !hthese\YgY! stateghUhY! `laws.Ukg*! And7bX !hthe\Y! Court9cifh !has\Ug! repeatedlyfYdYUhYX`m! statedghUhYX !hthat\Uh !Congress9cb[fYgg! canWUb! authorizeUih\cf]nY! stateghUhY! actionUWh]cb! thath\Uh !wouldkci`X ! otherwisech\Yfk]gY! violatej]c`UhY! hthe\Y! Dormant;cfaUbh ! 9CommercecaaYfWY! 9Clause.`UigY*! ?See,HH& ! e.g.,H(J((! /CampsDPSV ! ;Newfound/Owatonna,HZIRXQG)

20-+ !WeNY! have\UjY !dpreviouslyfYj]cig`m! suggestedgi[[YghYX !hthat\Uh !statutesghUhihYg! [grantingfUbh]b[! taxhUl !creditsWfYX]hg! "mustsaigh VbeY narrowlybUffck`m construedWcbghfiYX againstU[U]bgh theh\Y htaxpayer."UldUmYf*t 5IvoryYRU\! 4Homes,RPHV& !8Ltd.WG( ! v.Y( UtahAWDK ?StateWDWH @TaxD[ /Comm'n,RPPbQ(! 2011-+,,! UTLK! 54,0/(! 1110,x!,+(! 266-11! GP.3d*.X !2751.0,*! YetPYh !wekY !have\UjY! alsoU`gc saidgU]X hthat\Uh wekY "construesWcbghfiY! htaxUl !]impositionadcg]h]cb! statutesghUhihYg! liberally`]VYfU``m! in]b! favorZUjcf ! ofcZ ! theh\Y! htaxpayer."UldUmYf*t 5Id.G*! x¶! 31..,*! ThisK\]g! Xdichotomy]W\chcam! dpresentsfYgYbhg! aU ! Xdifficult]ZZ]Wi`h ! line-drawing`]bY)XfUk]b[! dproblem,fcV`Ya(! asUg! ]ith !]isg! notbch! alwaysU`kUmg! apparentUddUfYbh !whetherk\Yh\Yf !aU ![given]jYb! statutoryghUhihcfm dprovisionfcj]g]cb is]g betterVYhhYf viewedj]YkYX asUg aU amatterUhhYf ofcZ aU htaxUl "credit,"sWfYX]h(t oncb &(continuedWcbh]biYX !.*! .*! .)*' ! 19,4! ! STEINERJK<@E1/@B !v.Y( !UtahAWDK! ?StateWDWH! @TaxD[ /Comm'n,RPPbQ(! 2015-+,0! UTLK !93,4.(! x¶! 45,/0(! 364.1/ !GP.3d*.X !1036.,+.1*! For=cf !hthat\Uh !reasonfYUgcb! thereh\YfY! ]isg! aU !"dearthsXYUfh\! ofcZ !anyUbm! textualhYlhiU`! orcf !historical\]ghcf]WU`! foundationZcibXUh]cb! forZcf !aU! courtWcifh !htoc! look`cc_! hto"ct! ]inb! thish\]g! field.Z]Y`X*! 5Id.G*! TheK\Y! dproblemfcV`Ya! is]g! compoundedWcadcibXYX !whenk\Yb! wekY! searchgYUfW\! forZcf ! dprincipledf]bW]d`YX ! [guidancei]XUbWY! ]inb! dprecedentfYWYXYbh! fromZfca! hthe\Y! UnitedLb]hYX ! StatesJhUhYg! SupremeJidfYaY ! 9Court,cifh(! asUg! hthat\Uh! Court9cifh !itself]hgY`Z !has\Ug! long`cb[! acknowledgedUW_bck`YX[YX !hthat\Uh !its]hg! caseWUgY! `lawUk! ]inb! hthis\]g! fieldZ]Y`X !]isg! aU !bitV]h !ofcZ !aU !"quagmire,"seiU[a]fY(t ;Nw.Z( !?StatesWDWHV !=PortlandRUWODQG !/CementHPHQW !/Co.R( !v.Y(! 9Minnesota,LQQHVRWD(! 358.03! U.S.L*J*! 450,/0+(! 458/03! &(1959),,404'(! andUbX ! its]hg! frecentYWYbh ! XdecisionsYW]g]cbg! "addsUXX amorecfY ! roomfcca! forZcf ! controversyWcbhfcjYfgm! andUbX ! confusionWcbZig]cb! andUbX ! `little]hh`Y ! in]b! theh\Y! waykUm ! ofcZ ! dprecisefYW]gY! [guidesi]XYg! tohc! hthe\Y! StatesJhUhYg! in]b! hthe\Y! exerciseYlYfW]gY ! ofcZ ! htheir\Y]f ! indispensable]bX]gdYbgUV`Y! dpowerckYf ofcZ htaxation."UlUh]cb*t 0DIRECTV,5>1/@B(! 2015-+,0! UTLK !93,4.(! x¶! 44// !&(citationW]hUh]cb! andUbX !internal]bhYfbU`! quotationeichUh]cb! amarksUf_g! omitted).ca]hhYX'*! x¶631. ThisK\]g! is]g! theh\Y! legal`Y[U` !backdropVUW_Xfcd! forZcf !ourcif !XdecisionYW]g]cb! in]b! thish\]g! case.WUgY*! TheK\Y! SteinersJhY]bYfg! have\UjY !fraisedU]gYX !somegcaY !dplausible`Uig]V`Y! argumentsUf[iaYbhg! andUbX !]identifiedXYbh]Z]YX !somegcaY! dpotentialchYbh]U`! dpolicyc`]Wm !concernsWcbWYfbg! withk]h\! hthe\Y! htaxUl !regimefY[]aY! enactedYbUWhYX !byVm! theh\Y! StateJhUhY !ofcZ ! Utah.LhU\*! But8ih ! in]b! theh\Y! absenceUVgYbWY! ofcZ ! anyUbm! clearW`YUf ! anchorsUbW\cfg! in]b! htext,Ylh(! history,\]ghcfm(! orcf ! dprecedent,fYWYXYbh(! wekY ! areUfY! `leftYZh ! withk]h\! `little]hh`Y! amorecfY! hthan\Ub! aU ! requestfYeiYgh ! hthat\Uh ! wekY ! second-guessgYWcbX)[iYgg! theh\Y! dpolicyc`]Wm! ^judgmentiX[aYbh! ofcZ !ourcif !stateghUhY! legislature—based`Y[]g`UhifYrVUgYX !oncb! speculationgdYWi`Uh]cb! aboutUVcih ! how\ck! aU ! ratherfUh\Yf ! haphazard\Ud\UnUfX ! bodyVcXm! ofcZ ! caseWUgY! law`Uk! mayaUm! iultimately`h]aUhY`m! dplay`Um! outcih !in]b! theh\Y! future.ZihifY*! x¶641/ WeNY! doXc! notbch ! seegYY ! hthis\]g! asUg! ourcif ! role.fc`Y*22--! WeNY! iupholdd\c`X ! hthe\Y! constitutionalityWcbgh]hih]cbU`]hm! ofcZ ! theh\Y! UtahLhU\! htaxUl! dprovisionsfcj]g]cbg! atUh! issue]ggiY! oncb! theh\Y! [groundfcibX !

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT! @Transp.UDQVS( ! v.Y( ! /Carlson,DUOVRQ(! 2014-+,/! UTLK! 24,-/(! x¶! 24,-/(! 332..-! GP.3d*.X ! 9004++ ! &(quotingeich]b[! -Almendarez-TorresOPHQGDUH]^@RUUHV !v.Y( !UnitedAQLWHG !?States,WDWHV(! 5230-.! U.S.L*J*! 224,--/(! 238-.3! (1998)).&,443''*! ?HereYfY! hthe\Y! statuteghUhihY !is]g! iunambiguous.bUaV][icig*! ! !

22-- !See?HH! 0DIRECTV5>1/@B v.Y( UtahAWDK ?StateWDWH @TaxD[ /Comm'n,RPPbQ(! 2015-+,0! UTLK! 93,4.(! x¶! 46,/1(! 364.1/! GP.3d*.X !1036,+.1 !&(notingbch]b[ ourcif "hesitance"s\Yg]hUbWYt htoc "limit[]s`]a]hRS theh\Y longstanding`cb[ghUbX]b[ dpolicec`]WY dpowersckYfg! ofcZ !stateghUhY! andUbX !local`cWU` ![governmentscjYfbaYbhg htoc regulatefY[i`UhY business");Vig]bYggt'6! VseeHH! alsoDOVR ! &(continuedWcbh]biYX !.*! .*! .)*' ! 21-,! ! STEINERJK<@E

TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT! /ComptrollerRPSWUROOHU! ofRI! @TreasuryUHDVXU\! ofRI! 9Md.G( !v.Y( !Wynne,C\QQH(! 135,.0! S.J*! 9Ct.h*! 1787,,232(! 1810,3,+ !&(2015)-+,0' ! &(Scalia,JWU`]U(! J.,A*(! Xdissenting)]ggYbh]b[' ! (suggesting&gi[[Ygh]b[! hthat\Uh! hthe\Y! XdormantcfaUbh! commerceWcaaYfWY ! "doctrinesXcWhf]bY! XdoescYg! notbch ! callWU``! iupondcb! iusg! tohc! dperformYfZcfa! aU ! conventionalWcbjYbh]cbU`! ^judicialiX]W]U`! function,"ZibWh]cb(t !butVih "insteads]bghYUX !requiresfYei]fYg! iusg! tohc! balanceVU`UbWY! hthe\Y! needsbYYXg! ofcZ !commerceWcaaYfWY! againstU[U]bgh !hthe\Y !needsbYYXg! ofcZ !stateghUhY! [governments"cjYfbaYbhgtr —"asU !htaskUg_ !forZcf !legislators,`Y[]g`Uhcfg(! notbch! ^judges").iX[Ygt'*!

22--! !