In 1997, Paul D. Cullen, Sr. successfully concluded class action litigation against the State of Alabama resulting in a $70 million recovery for interstate motor carriers on account of the imposition of a marker fee of $12.00 per truck. The Circuit Court for Montgomery County, Alabama held that the marker fee was a flat tax the imposition of which imposed a heavier burden on interstate trucks based outside of Alabama than it did on Alabama based trucks. The Alabama Marker Fee was held to be a flat tax that discriminated against interstate commerce under the principles established in ATA v. Sheiner, 483 U.S. 266 (1987). The Alabama flat tax litigation was the largest and most successful case brought by the trucking industry against flat taxes. Because of the accumulation of pre and post-judgment interest, most class members received refunds in excess of 100 percent of the taxes actually collected by the State of Alabama. TCLF was fully involved in the refund distribution plan ordered by the Court.
The Cullen Law Firm has been involved in numerous other cases challenging various state taxes on activities in the trucking industry and has participated in tax refund distribution plans in order to protect the interest of owner-operators who frequently bear the burden of these taxes.

Paul D. Cullen, Sr. was also involved in a successful challenge to discriminatory enforcement activities by the State of Tennessee Public Service Commission favoring in-state motor carriers over out-of-state motor carriers. As a result of this litigation, the Tennessee legislature abolished its Public Service Commission.

To learn more about The Cullen Law Firm's tax discrimination practice contact us at pdc@cullenlaw.com.