​ Will Davis vs. Kentucky Case Destroy State Specific Money Funds? Managers of tax free money market funds are discussing the upcoming review of Davis, a Kentucky case that said it'​s unconstitutional for a state to tax out of state municipal income, by the U.​S. Supreme Court on Nov. 6, 2007. Should the Court uphold Davis, state-​specific municipal funds could become dinosaurs. But we believe this appears unlikely based upon recent court decisions and based upon the size and political importance of states and municipalities. JPMorgan'​s Nick Rabiecki tells us, "​A small number of funds are thinking about it [​Davis].... Some funds are taking it as more of a threat than others. No one knows what'​s going to happen here.... The lobbyists can'​t influence it. Some are creating contingency plans." Look for more in the October Money Fund Intelligence.

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