Walmart Cries Foul, Sues Puerto Rico Over Special Tax For Goods From Off Island

Walmart sued the government of Puerto Rico over taxes it collects for the goods brought from suppliers off the island to sell in the retailer’s local stores. Puerto Rico’s move to raise the special tax on the goods from 2 percent to 6.5 percent prompted Walmart to file the lawsuit. Walmart claims the tax is illegal and violates both the Commerce Clause and the Equal Protection Clause of the U.S. Constitution. Also, the retailer says it is the only business in Puerto Rico subject to the tax increase. Puerto Rico asserted Walmart can afford and should pay the tax because of the profits its business earns from the local retail market.