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The trial court ruled for the Secretary, but North Carolina\u0027s Court of Appeals reversed, holding that the taxable percentage deduction violated the Commerce Clause. In reversing, the North Carolina Supreme Court found that the State\u0027s scheme imposed a valid compensatory tax and that the intangibles tax imposed less of a burden on interstate commerce than the corporate income tax placed on intrastate commerce.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes North Carolina\u0027s \u0022intangibles tax\u0022 on a fraction of the value of corporate stock owned by North Carolina residents inversely proportional to the corporation\u0027s exposure to the State\u0027s income tax violate the Federal Commerce Clause?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EYes. In a unanimous opinion delivered by Justice David H. Souter, the Court held that North Carolina\u0027s intangibles tax discriminates against interstate commerce in violation of the dormant Commerce Clause. 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