United States Ninth Circuit

In this case, the district court's judgment in favor of defendants Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, finding them statutorily exempt from state and local taxation of real property transfers and finding that Congress had the constitutional authority to exempt defendants from such taxation, is affirmed, where: 1) the transfer taxes at issue here are excise taxes, and the statutory carve-outs allowing for taxation of real property encompass only property taxes, not excise taxes; 2) because Congress had power under the Commerce Clause to regulate the secondary mortgage market, it had power under the Necessary and Proper Clause to ensure the preservation of defendant organizations by exempting them from state and local taxes; and 3) the exemptions do not violate the Tenth Amendment.

Appellate Information

• Decided 12/30/2014
• Published 12/30/2014

Judges

• Bybee

Court

• United States Ninth Circuit

Counsel