WASHINGTON -- The Supreme Court ruled yesterday that Georgia must pay refunds to federal retirees who were illegally taxed, but the justices left it up to the state to decide how.

Justice Sandra Day O'Connor wrote for a unanimous court in Reich v. Collins that Georgia had improperly used a "bait and switch" technique by changing its statutory tax refund scheme in the course of litigation, thereby depriving the taxpayers of due process.

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