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Posted: May 20th, 2023

BUS 321 Xerox Corp. manufactured parts for copy machines in the U.S.

Xerox Corp. manufactured parts for copy machines in the U.S. that were shipped to Mexico for assembly. The copiers were designed to be sold to Latin America and did not operate on U.S. electric current. After assembly, the copiers were kept in U.S. customs warehouses in Houston pending sale to Latin America. These goods were free of import duty by federal law. The city of Houston, Texas, assessed these copiers with a local property tax. Xerox sued to have this tax declared unconstitutional. The court should decide: I. That Xerox must pay all this tax because state/local governments have taxing powers just like the federal government. II. That Xerox must pay only one-half of the tax to avoid multiple taxation. III. That this Houston law is preempted by federal law. a. I only. b. II only. c. III only. d. Both I and III.

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