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Rehearing Denied on Crude Oil Export Tax Constitutionality (1)

May 24, 2022, 3:45 PMUpdated: May 24, 2022, 4:37 PM

The US Court of Appeals for the Fifth Circuit turned down the government’s request for a rehearing after a three-judge panel concluded that a federal tax on crude oil exports is unconstitutional.

The Monday order leaves in place the panel’s March 24 ruling that commodity trading company Trafigura Trading LLC was owed a refund of more than $4.2 million in taxes that were applied on about 50 million barrels of crude oil. The panel concluded that a tax on crude oil exports under tax code Section 4611(b) ran afoul of the Constitution’s prohibition against export taxes.

The Justice Department ...