Levin v. Commerce Energy, Inc.

Ohio offered local gas distribution companies (LDCs) three tax exemptions unavailable to independent marketers (IMs), even though both used the same LDC pipelines to deliver gas to customers. Commerce Energy (plaintiff), an IM, sued Ohio's tax commissioner (defendant) in federal district court, alleging the exemptions discriminated against IMs in violation of the Commerce and Equal Protection Clauses. The federal Tax Injunction Act separately barred federal courts from actions that would reduce state tax revenues. The district court dismissed based on the comity doctrine, but the Sixth Circuit reversed, and the Supreme Court granted certiorari.