Southern California Edison v. State Department of TaxationAnnotate this Case
South California Edison (Edison) was not due a refund of use tax paid to Nevada because it did not demonstrate the existence of substantially similar entities that gained an unfair tax advantage because of the unconstitutional tax, and Edison was not owed a tax credit in an amount equal to the transaction privilege tax (TPT) levied by Arizona because the TPT did not qualify as a sales tax paid by Edison within the meaning of Nev. Admin. Code 372.055.
Edison filed a claim with the State Department of Taxation for a refund of the use tax it paid between 1998 and 2000. The Department and Nevada Tax Commission denied the requested refund. Edison then filed an independent action in the district court seeking a refund of the taxes it paid. The district court concluded that, while the negative implications of the dormant Commerce Clause rendered Nev. Rev. Stat. 372.270 (the use tax exemption) unconstitutional, Edison was not entitled to a refund because it did not have favored competitors that benefitted from the discriminatory taxation scheme. The Supreme Court affirmed for the reasons set forth above.