Supreme Court Won’t Hear Case on State Taxing Powers

The Supreme Court won’t hear a case on the extent of a state’s power to levy taxes on the income of an interstate business.

Staples Inc. and Staples the Office Superstore Inc. sought Supreme Court review after losing in court when challenging a tax bill from the state of Maryland. Neither conduct meaningful business in Maryland, but the state imposed taxes based “entirely on the operations of their affiliates,” they said in the petition for high court consideration.

The Maryland comptroller assessed a nearly $14 million tax bill for Staples Inc. and a $498,000 tax bill for the Superstore for ...