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Source Federalism Complete Delaware Bar Exam Topic Index List Matched to this deck.

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Delaware imposes a 5 percent surcharge only on revenue that private companies earn from contracts with federal agencies. The same revenue from state and private contracts is not subject to the surcharge.
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The surcharge is valid because states may tax federal agencies directly whenever the tax funds local services. The surcharge is valid because state tax immunity applies only to property taxes. The surcharge is invalid because it discriminates against federal work by singling out revenue from federal contracts. The surcharge is valid because federal contractors never receive any federal immunity.

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