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Limo Service Challenges DC Tax

WASHINGTON (CN) - A limo service claims the District of Columbia's 5.75% tax on its interstate commerce is unconstitutional. International Limousine Service says federal law "prohibits states from collecting a tax on the sale of passenger transportation in interstate commerce," and it also objects to a penalty clause that could levy a $206,000 fine on it.

International says most of its service originates from calls outside the District and/or terminates outside the District. And it says the District's tax violates the Commerce Clause of the Constitution by "impos(ing) excessive burdens on interstate commerce."

It wants the tax enjoined. It is represented in Superior Court by David Lampton with Niles, Barton & Wilmer of Baltimore.

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