• Fourth Circuit Finds Municipal Tax on Flood Insurance Premiums Barred by Doctrine of Sovereign Immunity
  • March 19, 2013 | Author: Logan M. Wells
  • Law Firm: Collins & Lacy, P.C. - Greenville Office
  • South Carolina municipalities are not entitled to assess municipal business license taxes based on, or measured by, the total flood insurance premiums collected in the particular municipality by insurance companies under an arrangement with FEMA, according to a March 1, 2013 opinion of the Fourth Circuit Court of Appeals. Finding the taxes contravened the principles of sovereign immunity, the Fourth Circuit reversed a decision of the U.S. District Court for the District of South Carolina.