The State of Hawaii enacts a piece of legislation that taxes all airplanes that land in the state. Several airlines challenge the legislation as unconstitutional. What is the likely result of the court case? Explain

Answer 1

The concept of federalism means that the governing power is divided between the federal government and the states. Hawaii has some power to tax businesses so long as there is sufficient nexus between the state and the activity being taxed. However, this particular piece of legislation is likely to be found to be unconstitutional, because it unduly interferes with commerce among the states and with foreign countries. The U.S. Constitution grants exclusive power to the federal government to regulate commerce with foreign countries and among the states. This provision is a broad source of power for the federal government and also a restriction on state regulations that obstruct or unduly burden interstate commerce. The Supreme Court ultimately decides the extent to which state regulation may affect interstate commerce. The Court considers the necessity and importance of the state regulation, the burden it imposes on interstate commerce, and the extent to which it discriminates against interstate commerce in favor of local concerns. These factors are analyzed on a case-by-case basis. There may also be an issue of federal supremacy and preemption here as the federal government has preempted the field of aviation regulation.