Full Faith and Credit, and Tax Collection

A resident of Nevada, who formerly lived in California, sued a California tax collection agency because they were allegedly harassing him to pay taxes owed in California.

The Nevada court ruled that a California law declaring its immunity to such suits was trumped by Nevada's interest in punishing the sort of harassment alleged by Hyatt.

The dispute has mushroomed from a dispute over taxes to a question of the relationship between states. The US Supreme Court has decided to hear this case, California Franchise Tax Board v. Hyatt, probably in early 2003.