In the aftermath of the US Supreme Court’s 1984 decision in Chevron U.S.A. Inc. v. Natural Resources Defense Council Inc., federal judges became exceedingly deferential to administrative agencies’ interpretations of apparently ambiguously drafted laws. As the impact of Chevron evolved, flaws in its holding became apparent across almost every area of law, including tax.
After 40 years, the US Supreme Court issued the long-awaited reversal of Chevron in Loper Bright Enterprises v. Raimondo earlier this year. The overturning of Chevron should not surprise state tax practitioners, who have seen the deference accorded to state revenue departments diminishing. And, state legislatures have begun responding to Loper Bright by enacting laws that require de novo review of — not deference to — administrative agencies in a wide range of cases, including tax.
In their article for Law360, Eversheds Sutherland attorneys Jonathan Feldman and Cyavash Ahmadi provide context and background to the Loper Bright decision and discuss how states played a role in Chevron’s demise.
Read the full article here.