Under the Import-Export Clause, which of the following can a state legitimately do?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

The correct answer reflects the principles established by the Import-Export Clause of the U.S. Constitution, which is found in Article I, Section 10. This clause restricts states from imposing tariffs or duties on imports and exports without the consent of Congress. However, once goods have entered a state and are in the stream of commerce or in storage, the state has the authority to levy taxes on those goods, similar to how it would tax other property within its jurisdiction.

Collecting property taxes on imported goods once they rest in the state is permissible because, at that point, the goods are considered part of the state's commerce, and the state is entitled to tax personal property owned by individuals or businesses located within its territory, regardless of the source of those goods.

The other choices violate the principles laid out by the Import-Export Clause. For instance, collecting tariffs on goods entering or leaving the state would create barriers to interstate commerce and conflict with federal authority. Similarly, levying property taxes on goods manufactured for foreign markets does not align with the regulations posed by the clause. These actions would interfere with the uniformity of trade, which the Import-Export Clause aims to protect.

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