Close
Close

Oklahoma Supreme Court holds capital gains deduction statute does not violate Commerce Clause

In a 5-4 decision, the Oklahoma Supreme Court has reversed the Oklahoma Court of Civil Appeals and held that the state’s capital gains deduction statute does not violate the Commerce Clause of the U.S. Constitution. Specifically, the statute imposes a shorter holding requirement to receive the capital gains deduction upon companies with their primary headquarters in Oklahoma versus companies with their primary headquarters outside Oklahoma. The Court held that there is no discrimination against interstate commerce to which the Commerce Clause applies. Furthermore, the Court held that even if the Commerce Clause applied to this case, the deduction does not facially discriminate against interstate commerce, does not have a discriminatory purpose and has no discriminatory effect on interstate commerce.

Download the PDF.