Court Case: Exxon v. Wyoming

Question 1

Who were the parties involved in the case?

Answer 1

• Exxon
• WY BOE
• WY Supreme Court

Question 2

What year did the case take place in?

Answer 2

1989

Question 3

What were the facts of the case?

Answer 3

• WY is a first-use state
• Exxon ordered pipes from TX, sipped them to CO for treating, and paid CO use tax
• Exxon then shipped them to WY and WY imposed a use tax on the pipes
• Exxon argued that the pipe was first used in CO due it getting treated there and that the tax was discriminatory because it taxed property that was originally purchased in another state.

Question 4

What was the decision in the case?

Answer 4

• The tax was approved bc it didn’t violate the commerce clause and met all 4 prongs.
• The state supreme court also ruled that the “intended” first use of the piping was in WY since it was necessary for installation in WY

Question 5

Which tax concept was at the forefront of this case?

Answer 5

First use

Question 6

What was the significance of the case?

Answer 6

It set the precedent for defining what first use is and where the property is actually first used at