If a business is interstate, the states may not tax the portion of a business generated within one state, unless so allowed by Congress.

Question

Quizplus · Accepted Answer

The U.S. Constitution grants states the power to tax the portion of a business generated within their borders, even if the business operates interstate. This is subject to the Commerce Clause, which allows Congress to regulate interstate commerce, but states retain the right to tax businesses operating within their jurisdiction as long as they do not create barriers to interstate commerce.

If a Business Is Interstate, the States May Not Tax