Wal-Mart Puerto Rico, Inc. v. Zaragoza-Gomez, No. 16-1370 (1st Cir. 2016)Annotate this Case
In an effort to raise more tax revenue, the Puerto Rico legislature amended the corporate alternative minimum tax (AMT) in 2015. Wal-Mart Puerto Rico, Inc., the largest private employer in Puerto Rico, brought this action seeking an injunction against the continued enforcement of the AMT against it and a declaration that the AMT was unlawful. The district court permanently enjoined and declared invalid the enforcement of the AMT, concluding that the AMT violates the dormant Commerce Clause, the Federal Relations Act, and the Equal Protection Clause. The First Circuit affirmed, holding (1) the federal district court had jurisdiction over the suit; and (2) the AMT is a facially discriminatory law that does not survive the heightened level of scrutiny under the dormant Commerce Clause.
The court issued a subsequent related opinion or order on September 13, 2016.