Hearing To Dismiss Class Action Against State Scheduled for July 31

Date:  July 17, 2008

RALEIGH – The North Carolina Department of Revenue will seek judicial approval this month of a voluntary dismissal in Dunn v. State, a class action lawsuit seeking refunds of tax paid on interest from out-of-state bonds.

The plaintiffs in Dunn argued that the taxation of interest from out-of-state bonds, while exempting interest paid on North Carolina bonds, violated the U.S. Constitution. On May 19, 2008, the U.S. Supreme Court rejected the argument that the practice violated the U.S. Constitution in Kentucky v. Davis.

The hearing is scheduled for Thursday, July 31, 2008 in the Forsyth County Courthouse, 200 North Main St., Winston-Salem, Courtroom 5B, at 1 p.m. The hearing will be open to the public, and the court may allow interested parties to comment.

The full name of the case is Lessie J. Dunn and Erwin W. Cook, Jr., Individually and on Behalf of a Class of All Others Similarly Situated v. The State of North Carolina, The North Carolina Department of Revenue, E. Norris Tolson, as Secretary of The North Carolina Department of Revenue, Forsyth County No. 04 CVS 844.


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