Wynne case getting it’s day in court – Update!

Last month the Maryland Reporter covered the latest update on a case many CPAs in Maryland (and other states) have been waiting for. The case has been disputed since 2006 and lots of Maryland refunds are on hold pending the outcome of this case.

At issue is the deductibility of taxes paid to other states on Maryland's personal income taxes for the "piggyback" portion against county taxes. The case progress is outlined on the SCOTUS blog here and they conclude with,

"This case presents a fascinating collision between the imperatives of state sovereignty and free markets – between the states’ autonomy in matters core to their separate existence, and the axiom that commerce among the states must be protected from parochial trade barriers. State tax disputes generally don’t raise fundamental questions about the role of the states in our constitutional structure. But this one does."

Plenty of MACPA Tax Practitioners have been waiting and watching this case from the beginning and continue to ask questions on our tax groups. The last thing I saw was predicting a narrow victory of 5-4 in favor of Wynne, what is your prediction?