Document: 497 U.S. 916 110 S.Ct. 3202 111 L.Ed.2d 734 ASHLAND OIL, INC.v.Michael E. CARYL, Tax Commissioner of the State West Virginia. No. 88-421. June 28, 1990. PER CURIAM. 1 Appellant Ashland Oil, Inc., a Kentucky corporation, is an integrated oil company that maintains business locations worldwide, including in During years at issue here, Virginia imposed gross receipts tax on persons selling tangible property wholesale. W.Va. Code § 11-13-2c (1983). Local manufacturers were exempt from tax. 11-13-2. The Department conducted detailed audit Ashland's returns for fiscal ending September 1975 and 1976 assessed deficiency payments $181,313.22 wholesale sales with destinations. filed timely petition reassessment, primarily contending was unconstitutional as applied because there insufficient connection between its in-state activities transactions sought to be taxed. Juris. Statement 38a. After rejected petition, appealed Circuit Court Kanawha County. While appeal pending, this decided Armco Inc. v. Hardesty, 467 638, 104 2620, 81 540 (1984), which invalidated scheme had also been against discriminatory interstate commerce. granted summary judgment basis our decision Armco. 2 Supreme Appeals reversed, holding did not apply retroactively, remanded further proceedings. Relying state-law criteria retroactivity, see Bradley Appalachian Power Co., 163 332, 256 S.E.2d 879 (1979), it considered "follow closely analysis employed by United States Chevron Oil Co. Huson, 404 97, 106-[1]07, 92 349, 355, 30 296 . (1971)," Rose, 177 20, 23, n. 6, 350 531, 534, 6 (1986), court determined "represented reversal prior precedent, retroactive application rule would cause severe hardship." Id., 25, S.E.2d, 536. Accordingly, held precluded collecting taxes due preceding date 25-26, 536-537. We dismissed want final judgment. 481 1025, 107 1949, 95 522(1987). On remand, remaining claim, denied request review. 3 In Court, contends, among other claims, erred determining prospectively only. Because "[t]he determination whether constitutional matter federal law," American Trucking Assns., Smith, 496 167, 177, 2323, 2330, 148 (1990), we must examine state court's light nonretroactivity doctrine. 4 Applying view retroactivity delineated either dissent or plurality reverse decision. Under reasoning applies retroactively decisions all cases direct supra, 212, S.Ct., 2349 (STEVENS, J., dissenting). approach same result obtains, fails satisfy first prong plurality's test nonretroactivity. See 106-107, (1971), quoted 495 U.S., 179, 2331 (plurality opinion). 5 requires "the nonretroactively establish new principle law, overruling clear past precedent litigants may have relied, deciding impression whose resolution clearly foreshadowed." 355 (citation omitted). Armco, Ohio corporation contested applicability Virginia's steel wire rope. ruling violated Commerce Clause, relied Boston Stock Exchange Comm'n, 429 318, 12, 97 599, 608, 50 514 (1977), "may discriminate some element." face, statutory just such effect, "provides two companies will treated differently depending taxpayer conducts manufacturing out it." 642, 2622. next argument State's exemption out-of-state taxpayers served compensation imposition heavy taxpayers. Maryland Louisiana, 451 725, 101 2114, 68 576 (1981), event nondiscriminatory when "is attempting impose substantially equivalent assure uniform treatment goods materials consumed State." 759, 2135. scheme, "manufacturing wholesaling are 'substantially events' can said compensate admittedly lighter burden placed wholesalers 643, 2623. distinguished Alaska Arctic Maid, 366 199, 929, 227 (1961), Caskey Baking Virginia, 313 117, 61 881, 85 L.Ed. 1223 (1941), predated compensatory doctrine enunciated Louisiana. 7, 2623, 7. 7 Finally, should required prove actual impact. Instead, asserted "internal consistency" test, Container Corp. America Franchise Bd., 463 159, 169, 103 2933, 2942, 77 545 (1983), applicable "where allegation face discriminates commerce." 644, 2624. 8 unquestionably contributed development dormant Clause jurisprudence. See, e.g., Judson & Duffy, An Opportunity Missed: A Retreat Economic Reality Analysis Taxes, 87 W.Va.L.Rev. 723, 740-743 (1985) (suggesting Armco's invalidation facially statute signaled retreat economically realistic adopted Complete Auto Transit, Brady, 430 274, 1076, 51 326 return more formalistic analysis); Lathrop, Armco—A Narrow Puzzling Test Discriminatory Taxes 63 551, 558-559 (1985). adopting internal consistency extended beyond context originated. 648, 2625 (REHNQUIST, Nevertheless, neither overturned established precedent* nor "an 106, 355. To sure, paved way Tyler Pipe Industries, Washington Dept. Revenue, 483 232, 2810, 199 (1987), arguably "overturn[ed] lengthy list settled decisions" "revolutionize[d] law taxation," id., 257, 2825 (SCALIA, concurring part dissenting part), extending test. itself, however, revolutionary. Scheiner, 266, 303, 2829, 2850, 226 (1987) (O'CONNOR, dissenting) ("At most, read proposition if 'internally consistent' "). 9 overrule decide wholly impression, does meet thus under advocated Smith. declining determine constitutionality issue. motion Committee Taxation Council Chambers leave file brief amicus curiae granted. remand case proceedings inconsistent opinion. 10 It so ordered. * Court's dismissal substantial question Columbia Gas Transmission 459 807, 32, 74 46 (1982), raising nearly identical challenge tax, year amount "overruling [of] relied." (1971). gives less deference dispositions, see, Caban Mohammed, 441 380, 390, 9, 99 1760, 1767, 60 297 unlikely upon 1982 Gas, given struck down effect than years.

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