If, to help the development of small businesses, a state legislature imposes a lower tax rate on goods produced by small businesses in the state than it imposes on goods produced by similar businesses from other states, the tax is unconstitutional.

Question

Quizplus · Accepted Answer

This is because such a tax violates the Dormant Commerce Clause, which prohibits states from discriminating against or unduly burdening interstate commerce. By imposing a lower tax rate on in-state small businesses, the state is giving them an unfair advantage over out-of-state businesses producing similar goods.

If, to Help the Development of Small Businesses, a State