Chevron Step Zero After City of Arlington

Patrick J. Smith is a partner at Ivins, Phillips & Barker in Washington. City of Arlington was not a tax case, but is still relevant for the tax world because the Supreme Court clarified when the Chevron two-step test for evaluating the validity of some agency interpretations of statutory provisions applies. This issue is generally referred to as ‘‘Chevron step zero.’’ The main holding of City of Arlington was that issues of statutory interpretation related to the scope of the agency’s jurisdiction or authority to act are subject to the Chevron two-step test. However, the decision also suggests that the most unsatisfactory aspect of the Mead test for answering Chevron step zero may have been eliminated.