Fulton Corp. v. Faulkner, 516 U.S. 325, 23 (1996)

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Cite as: 516 U. S. 325 (1996)

Opinion of the Court

period reflec[t] a scheme that does not discriminate against interstate commerce." Id., at 41.11

In this case, that choice may well be dictated by the severability clause enacted as part of the intangibles tax statute. N. C. Gen. Stat. § 105-215 (1992). That issue, however, as well as the question whether Fulton has properly complied with the procedural requirements of North Carolina's tax re-fund statute, § 105-267, ought to come before the state courts in the first instance. Cf. Swanson v. State, 335 N. C. 674, 680-681, 441 S. E. 2d 537, 541 (noting that "[f]ailure to comply with the requirements in section 105-267 bars a taxpayer's action against the State for a refund of taxes"), cert. denied, 513 U. S. 1056 (1994).12 Where "the federal constitutional issues involved [in the remedial determination] may well be intertwined with, or their consideration obviated by, issues of state law," our practice is to leave the remedy for the state supreme court to fashion on remand. Bacchus Imports, Ltd. v. Dias, 468 U. S. 263, 277 (1984); see also Tyler Pipe Industries v. Dept. of Revenue, 483 U. S., at 252; Williams v. Vermont, 472 U. S. 14, 28 (1985). We do that here.

The judgment of the North Carolina Supreme Court is reversed, and the case is remanded for proceedings not inconsistent with this opinion.

It is so ordered.

11 We have also suggested that a " 'meaningful opportunity for taxpayers to withhold contested tax assessments and to challenge their validity in a predeprivation hearing' is itself sufficient to satisfy constitutional concerns." Associated Industries, 511 U. S., at 656 (quoting McKesson, 496 U. S., at 38, n. 21). The Secretary has not asserted that such an opportunity was afforded to Fulton under North Carolina's remedial scheme.

12 The North Carolina Court of Appeals in this case did address the severability clause, holding that it required that the intangibles tax continue in effect without the taxable percentage deduction. Fulton Corp. v. Justus, 110 N. C. App. 493, 504, 430 S. E. 2d 494, 501 (1993). Because the North Carolina Supreme Court found the tax to be valid, however, it did not reach this question.

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