Question

1) Answer part A and B based on these facts: You own a company that specializes in making ice cream in the State of New York. Recently the State government of Texas has created a new task force that has been handing down regulations related to which states are allowed to provide the dairy products used in the production of ice cream sold in Texas. In addition to these regulations they have also imposed an additional sales tax on any ice cream sold in the State of Texas that includes dairy products not produced in the State of Texas. The regulations have also made it a crime to purposefully put dairy products not produced in Texas into your ice cream without listing them on the label and informing the State task force so they can impose the necessary tax. In an attempt to comply with the new regulations, you purchase second hand, dairy products which you were told originated in Texas. However, after the ice cream has gone to market in Texas without the appropriate labels or additional sales tax, you are informed that the dairy products you purchased actually were not produced in the State of Texas. A) Under the Constitution, is the State of Texas allowed to impose regulations related to which dairy products are utilized in the produce of ice cream? Why or why not? Provide reference to a specific section or amendment. B) Is the State of Texas allowed impose and additional tax on products produced with non-state dairy? Why or why not? Provide reference to a specific section or amendment.

Answer 1

The Constitution empowers the U.S. Congress to regulate interstate (ie. from one state to another)movement /sale of any goods. However, the Constitution also gives the states, the power to regulate things/areas that are not   solely under the Federal government's purview.So it devolves that the states can impose additional regulations on items within their state that are even already under federal regulations.But where, both clash, federal regulation stands.

A. YES. The sale of dairy products, are regulated under Sec 435 by the Texas State Department of Health Services (TSDH), grading & listing the dairy item on the label.

B.YES.Going by the same above section,the State of Texas is allowed impose and additional tax on products produced with non-state dairy