WASHINGTON – The U.S. Circuit Court of Appeals for the District of Columbia earlier this week upheld a lower court’s decision to place an injunction against enforcement of the tax provisions of the Prevent All Cigarette Trafficking Act (PACT Act). NACS had filed an amicus brief in the case urging the court to dismiss the injunction. 

The case (Gordon v. Holder) involves a plaintiff who sells cigarettes and who challenged the PACT Act before it took effect, arguing that it violated his due process rights to pay taxes to states where he didn’t conduct business.

Neither the District Court nor the Court of Appeals decided the validity of the law, but both courts found sufficient questions to enjoin the tax provisions until after a trial.

The defendant, the Department of Justice, can ask the U.S. Supreme Court to accept an appeal of the decision. Otherwise, the case returns to the District Court.