On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a decision in Texas Top Cop Shop, Inc., et al. v. Garland, et al., granting a preliminary nationwide injunction against the enforcement of the Corporate Transparency Act (CTA).
This court ruling impacts condominium, homeowner (HOA), and townhome community association across the U.S. by blocking the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information (BOI) reporting requirements providing a temporary pause, allowing the courts and potentially the Supreme Court, to further deliberate on the constitutional issues at hand. As this is a temporary injunction, you should remain informed about ongoing legal developments.
The Court based its ruling by finding the BOI requirements were not a valid exercise of Congress’s Commerce Clause power, stating that the“fact that a company is a company does not knight Congress with some supreme power to regulate them in all aspects—especially through the CTA, which does not facially regulate commerce.”