Lunding v. New York Tax Appeals Tribunal, 522 U.S. 287, 36 (1998)

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322

LUNDING v. NEW YORK TAX APPEALS TRIBUNAL

Ginsburg, J., dissenting

or their occupations carried on therein." Shaffer, 252 U. S., at 52; accord, Travis, 252 U. S., at 75.

Second, a State may not deny nonresidents personal exemptions when such exemptions are uniformly afforded to residents. See id., at 79-81. Personal exemptions, which are typically granted in a set amount "to all taxpayers, regardless of their income," Hellerstein, Some Reflections on the State Taxation of a Nonresident's Personal Income, 72 Mich. L. Rev. 1309, 1343 (1974) (hereinafter Hellerstein), effectively create a zero tax bracket for the amount of the exemption. See Chirelstein, p. 3. Denial of those exemptions thus amounts to an across-the-board rate increase for nonresidents, a practice impermissible under longstanding constitutional interpretation. See, e. g., Chalker v. Birmingham & Northwestern R. Co., 249 U. S. 522, 526-527 (1919); Ward v. Maryland, 12 Wall. 418, 430 (1871); see also Austin v. New Hampshire, 420 U. S., at 659 (Privileges and Immunities Clause violated where, "[i]n effect, . . . the State taxe[d] only the incomes of nonresidents working in New Hampshire"). Because New York denied nonresidents the personal exemption provided to all residents, the Travis Court held the State's scheme an abridgment of the Privileges and Immunities Clause. 252 U. S., at 79-81.

Finally, deductions for specific expenses are treated differently from the blanket exemptions at issue in Travis: A State need not afford nonresidents the same deductions it extends to its residents. In Shaffer, the Court upheld Oklahoma's rules governing deduction of business losses. Oklahoma residents could deduct such losses wherever incurred, while nonresidents could deduct only losses incurred within the State. The Court explained that the disparate treatment was "only such as arises naturally from the extent of the jurisdiction of the State in the two classes of cases, and cannot be regarded as an unfriendly or unreasonable discrimination." 252 U. S., at 57. A State may tax its residents on "their income from all sources, whether within or without

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