Document: 400 U.S. 4 91 S.Ct. 16 27 L.Ed.2d UNITED STATESv.MARYLAND SAVINGS-SHARE INSURANCE CORPORATION. No. 160. Oct. 19, 1970. PER CURIAM. 1 This is a direct appeal by the United States from district court judgment holding unconstitutional § 501(c)(14)(B) of Internal Revenue Code 1954, 26 U.S.C. (1964 ed., Supp. V), on ground that it arbitrarily discriminates between Maryland Savings-Share Insurance Corp. (MSSIC), appellee, and other similar nonprofit, mutual insurers. 2 MSSIC was established Legislature with object insuring accounts shareholders member savings loan associations. Although first chartered in 1962, seeks benefit 501(c)(14)(B), which exempts tax nonprofit corporations such as appellee but only if organized before September 1, 1957.1 MSSIC's position 1957, an arbitrary cutoff date must be excised section, leaving section applicable to all same nature itself regardless their creation. We do not agree. 3 Prior 1951, associations were exempt taxation income derived operations. Also insured institutions. In exemption for discontinued, findings industry had developed point comparable commercial banks. The insurers, however, continued, provided they already existence 1951. See Act 313(b), 65 Stat. 490; S.Rep.No.781, 82d Cong., 1st Sess., 22—29; U.S.Code Cong. & Ad. News, 1969, 1991—1997 (1951). As three private insurers fell within scope section—two them Massachusetts one Connecticut. Then, 1956, fourth corporation Ohio, four years later Congress moved forward 1957. April 22, 1960, 74 54. 1963, bill, H.R. 3297, 88th would have January MSSIC, passed House, never reported out Senate Finance Committee. Testimony committee indicated continued movement might lead proliferation state could hinder operations threaten financial stability Federal Deposit Corporation Savings Loan Corporation. Hearing 3297 Committee Finance, 2d 9—10 (1964). 5 Against this background, District Court's invalidation error. fact enacts statute containing 'grandfather clause,' general certain prior specified date, does indicate has made classification. Cf. Stanley v. Public Utilities Comm'n, 295 76, 55 628, 79 L.Ed. 1311 (1935); Sperry Hutchinson Co. Rhodes, 220 502, 31 490, 561 (1911); Watson Maryland, 218 173, 30 644, 54 987 (1910); Sampere New Orleans, 166 La. 776, 117 So. 827 (1928), aff'd per curiam, 279 812, 49 262, 73 971 (1929). Normally, legislative classification will set aside any facts rationally justifying demonstrated or perceived courts. McDonald Board Election Comm'rs, 394 802, 809, 89 1404, 1408—1409, 22 739 (1969); McGowan 366 420, 426, 81 1101, 1105, 6 393 (1961); Standard Oil City Marysville, 582, 586—587, 430, 431—432, 856 also supra, at 178, 646—647. Here history affirmatively discloses rational basis declining 1963 broaden extending 501(c)(14)(B). Just State may provide after newly common carriers obtain approval entering into business so prevent excessive use State's highways, see similarly exceed its power nor violate Fifth Amendment when refuses formed corporations, multiplication burden otherwise valid federal programs.2 Having noted probable jurisdiction order October 12, 1970, we now reverse Court. 7 So ordered. 8 Judgment Court reversed. 9 Mr. Justice HARLAN, considering issues case are deserving plenary consideration, argument. provides: '(B) Corporations without capital stock operated purposes profit purpose providing reserve funds for, insurance shares deposits in— '(i) domestic building associations, '(ii) cooperative banks profit, '(iii) having represented shares.' reliance Mayflower Farms, Inc. Ten Eyck, 297 266, 56 457, 80 675 (1936), misplaced, since, according case, record contained no affirmative showing purpose. thus need pass upon continuing validity Mayflower's holding. find unpersuasive remaining argument instrumentality hence entitled under doctrine intergovernmental immunity 115(a)(1) Code, 115(a)(1). properly rejected

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