October Term 2018 · Docket 17-419

Does West Virginia tax federal retiree pensions differently than state ones?

Federal marshals argue West Virginia taxes their pensions while exempting state workers. The state claims the tax is legal.

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Dawson v. Steager
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Verified source milestones

  1. — An official oral-argument transcript was verified.
  2. — An official oral-argument transcript was verified.

The arguments, in order

This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.

  1. Argument 1 ·

    What happened at the argument

    Mr. Rosenberg argued the tax violates Section 111. He stated it discriminates based on compensation source. He said only state plans receive the exemption.

    Ms. See argued the taxpayer must show different treatment. She cited the Jefferson County decision. She emphasized the need for similar state employee comparison.

    Mr. Huston agreed the tax is facially discriminatory. He stated this is the critical feature. He addressed questions about state employee categories.

    Read the official transcript for this argument · Official argument details

    Sources used for this argument breakdown

A citizen's guide to the whole case

What this case is about

West Virginia taxes pensions from federal retirement plans. It exempts pensions from state plans. Federal marshals say this violates federal law. The state says the tax is fair.

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How the case got here

The Supreme Court heard oral argument in this case on December 3, 2018.

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What each side wants

the sides that brought the case want the Court to strike down the tax. They argue it discriminates against federal workers.

the opposing sides want the Court to uphold the tax. They argue the state can tax federal pensions.

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What each side says

the sides that brought the case argue the tax facially discriminates based on compensation source. They cite precedent requiring equal treatment for similar employees.

the opposing sides argue the tax is not discriminatory. They claim federal and state workers are not similarly situated.

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What the justices asked

Justice Sotomayor asked how to identify overlapping job duties. She noted marshals overlap with lower-tax and higher-tax state agents.

Chief Justice Roberts asked if the marshal's job is administrative. He asked if retirement money comes from marshal time. He asked if the Attorney General qualifies as law enforcement.

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Why it matters

This case determines if states can tax federal retiree pensions differently. It affects the financial treatment of federal employees. It clarifies the scope of intergovernmental tax immunity.

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What happens next

This article currently covers the argument record. Use the official docket link for later case activity.

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Official Court provenance

Official docket and case history · Official Supreme Court oral-argument detail page

Title and summary sources

Revision history

  1. Revision 1 · Official Transcript ·

    Correction: Rewritten to the concise citizen-facing editorial standard.

  2. Revision 2 · Official Transcript ·

    Correction: Migrated to the dated official Court activity contract without model use.

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