The Supreme Court analyzed a Massachusetts pricing order that imposes an assessment on all fluid milk sold by dealers to Massachusetts retailers. This pricing order discriminates against out-of-state dairy farmers by making milk produced out of state more expensive, which is unconstitutional. The respondent argues that the pricing order is constitutional because it combines a local subsidy and a nondiscriminatory tax, which are independently lawful regulations. However, the pricing order is unconstitutional because it burdens interstate commerce by being funded mainly from taxes on the sale of milk produced in other states, violating the principle that a state cannot benefit its in-state economic interests by burdening out-of-state competitors.
West Lynn Creamery, Inc. v. Healy (1994)
Supreme Court of the United States
512 U.S. 186, 114 S. Ct. 2205, 129 L. Ed. 2d 157, 1994 U.S. LEXIS 4638, SCDB 1993-075
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