Assume the following: A state law imposes a tax on all timber harvested within the state. In-state timber-cutting companies pay a tax rate of 3% of the wholesale value of the timber harvested. Timber-cutting companies out-of-state pay a tax rate of 6% of the wholesale value of the timber harvested. An out of state company files suit in the United States District Court, claiming that the state's two-tier timber tax violates the Commerce Clause. How should the district court rule? Why?

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The Answer of Assume the following: A state law imposes a tax on all timber harvested within the state. In-state timber-cutting companies pay a tax rate of 3% of the wholesale value of the timber harvested. Timber-cutting companies out-of-state pay a tax rate of 6% of the wholesale value of the timber harvested. An out of state company files suit in the United States District Court, claiming that the state's two-tier timber tax violates the Commerce Clause. How should the district court rule? Why?

Assume the Following: a State Law Imposes a Tax on All