Document: 463 U.S. 855 103 S.Ct. 3369 77 L.Ed.2d 1072 AMERICAN BANK AND TRUST COMPANY, et al., Petitionerv.DALLAS COUNTY al. No. 81-1717. Argued March 29, 1983. Decided July 5, 1983.* Rehearing Denied Sept. 8, See —- —-, 104 39. Syllabus Until 1959, Rev.Stat. § 3701 provided in pertinent part that "[a]ll stocks, bonds, Treasury notes, and other obligations of the United States, shall be exempt from taxation by or under State municipal local authority." In Congress amended adding a second sentence: "This exemption extends to every form would require either interest thereon, both, considered, directly indirectly, computation tax," with exceptions only for nondiscriminatory franchise taxes nonproperty taxes, estate inheritance taxes. 1979 1980, Texas imposed property tax on bank shares, was levied shares petitioner state national banks their shareholders. The computed basis each bank's net assets without any deduction value States held bank. Petitioners, separate state-court actions, sought mandamus, declaratory, injunctive relief, asserting 3701, as amended, required reduced proportionate Ultimately, Court Civil Appeals, companion cases, upheld tax. Held: 1. violates amended. Pp. 862-867. (a) 1959 amendment set aside this Court's pre-1959 interpretation statute did not prohibit discrete interests such corporate even though measured underlying assets, including obligations. Under plain language amendment, is barred regardless its if federal must computing Giving words ordinary meaning, there can no question were considered at issue here. express amendment—franchise taxes—reinforce conclusion. fact statute, face, does use equity capital formula based immaterial. assessors used formula, which usual customary method employed Texas, thus violated 3701's language. 862-865. (b) legislative history supports construction according Nothing suggests fall outside scope prohibition. Rather, intended sweep away formal distinctions invalidate all indirectly obligations, except those specified amendment. 865-867. 2. Nor authorized 5219, That provides may impose discriminatory banks. Section 5219 capable co-existence justification construing create an inconsistency. An unexpressed congressional authorization full should read into section it existed before 1969. Before 1969, ways, taxing shares. However, version mention obligations; was, still is, addressed historically analytically distinct prohibiting intolerable burden prior need giving implied consent seen "implied repeal" pre-1969 5219. doctrine disfavoring repeals irrelevant 867-873. 615 S.W.2d 810 (Bank judgment Tex.Civ.App.1981), American Bank & Trust Co. judgment, Wynnewood reversed. Marvin S. Sloman, Dallas, Tex., petitioners. Ernest J. Brown, Washington, D.C., amicus curiae, special leave Court. Carroll R. Graham Earl Luna, respondents. Justice BLACKMUN delivered opinion 1 presented whether tax-exempt bank, Appeals ruled not. 2 * 31 U.S.C. 742, provided, part, This consistently prohibited ederal directly, taxpayer's total assets. Society Savings v. Bowers, 349 143, 147-148, 75 607, 609-610, 99 L.Ed. 950 (1955). also held, however, business franchises, Werner Machine Director Taxation, 350 492, 493-494, 76 534, 535, 100 634 (1956); U.S., S.Ct., 609-610; Des Moines Fairweather, 263 103, 112, 44 23, 26, 68 191 (1923); Home Moines, 205 503, 518-519, 27 571, 575-576, 51 901 (1907); Provident Institution Massachusetts, 6 Wall. 611, 629-632, 18 907 (1867). Similarly, interpreted transaction, inheritance, transferred. Plummer Coler, 178 115, 133-134, 20 829, 836-837, 998 (1900). 1956, observed but economically meaningless distinction between government "firmly embedded law." 148, 610. 3 Act 22, 105(a), 73 Stat. 622.1 II 4 real holdings Tex.Civ.St.Ann., Art. 7166 (Vernon 1960).2 It doing report assessor, submit list shareholders number owned each. actual assessor jurisdiction. To prevent double taxation, share taxed shareholder difference share's cash amount per assessment. 5 Petitioners are certain Respondents subdivisions officers Boards Equalization subdivisions, petitioners' pursuant 7166. determining subject tax, respondents included relief against court, initial concerning precludes consideration App. Pet. Cert. 50a. On motions rehearing, court withdrew original and, instead, Childs, (Tex.Civ.App.1981). stated that, different 12 548,3 had reduction S.W.2d, 817-820. concluded withdrawn authorization. 819-820. reasoned granted effect have repealed portion implication favored. 820-822.4 Similar judgments entered cases. 2a, 41a. denied 823-826; 3a, 42a. Supreme applications writs error. Id., 4a, 39a, 43a. 7 Because decisions appeared inconsistent Montana,5 because importance issue, we certiorari. 459 ----, 291, 74 276 (1982). III A. 8 "Absent clearly expressed intention contrary, [the statutory] ordinarily regarded conclusive." Consumer Product Safety Comm'n GTE Sylvania, Inc., 447 102, 108, 2051, 2056, 64 766 (1980). sweeping: specific exceptions, "extends tax" (emphasis supplied). Memphis Garner, --- 692, 695, 562 (1983) (the "establishes broad exemption"). 9 rejected rather formalistic approach 3701. approach, transaction ownership entirely irrelevant. 129, 834; Ins. New York, 134 594, 600, 602, 606, 10 593, 595, 596, 597, 33 1025 (1890). remained true despite recognition practical impact indistinguishable include context, word "considered" means taken account, accounting.6 "equity formula," involved subtracting figure liabilities assessed estate, then dividing result 816. Plainly, takes least constitute Cf. 146-147, 609-610 (tax corporation owns); Jersey Realty Title Divisio Tax 338 665, 672-673, 70 413, 417-418, 94 439 (1950) (same); Case, 200, 208-209, 17 793 (1864) (same).7 11 Just laws relating generally assess corporation's see 610, customarily demise inherited. See, e.g., 534 (franchise "net worth"); 134, 836 (inheritance "the passing"); 599, 595 "capital stock dividends"). Prior like theory transfer property, than securities themselves. By expressly exempting manifested awareness new broaden significantly prohibition been construed courts. believed "be tax"; otherwise, exemptions these superfluous. There reason conclude different. 13 encompasses "every taxation," exceptions. Lewis 445 55, 60-62, 915, 918-919, 63 198 From conspicuous omission group, one inference possible: meant bar extent they consider Andrus Glover Construction Co., 446 608, 616, 1905, 1910, 548 (1980); Allard, 444 51, 56, 318, 322, 62 210 (1979).8 14 Dallas County, argue, because, Brief 10-11. present litigation, assessing 610,9 arrive value." City Midland National Bank, 607 304. cited single instance where employed. prohibits tax; cannot matter mandated practice so many words.10 therefore B 15 while extensive, amendment's effect. catalyst Idaho "upon individual . his income." Code 63-3011 (1948). Despite holding precluded direct well Division 675-676, 418-419, Idaho's position received merely income, being income itself. Hearings Public Debt Ceiling Interest Rate Bonds House Committee Ways Means, 86th Cong., 1st Sess., 69-70 (1959) (supplemental statement Secretary Anderson) (Hearings). presenting Congress, described "rest[ing] upon substance." 71. accusations leveled analogous hand, other.11 16 suggest, make clear Idaho's, unlawful. respondents, mean established We, found evidence whatsoever suggest refers specifically raise "negative inference" limiting problem. Newport News Shipbuilding Dry Dock EEOC, 2622, 2629, ---- (1983). plainly more exempt. relied individual, Hearings, 70. answer argument, abolished inquiry interest, replaced "computation requires apply taxes; reaches ." Indeed, felt compelled precisely limited understood effect; both Senate reports explained "makes principal franchise, etc., taxes" S.Rep. 909, (1959); H.R.Rep. 1148, (1959), U.S.Code Cong. Admin.News p. 2769. IV effort avoid resurrect embark tour 548. authorizes repeal implication. Even conclude, valid. 19 true, course, "repeals favored." Posadas 296 497, 56 Ct. 349, 352, 80 351 (1936). flows basic principle "courts liberty pick choose among enactments, when two statutes coexistence, duty courts, absent regard effective." Morton Mancari, 417 551, 2474, 2483, 41 290 (1974). But, time assessed, When challenged here now, could banks: "For purposes law enacted authority State, treated organized existing jurisdiction within office located." requirement corporations easily co-exists 5219's simple ban common-sense proper cases clear. 21 Respondents, though, find exception reading value. argue silent looking section. assuming adventure statutory revision appropriate exercise judicial power, respondents' argument unnecessary earlier 22 1926 until four ways: (1) (2) dividends taxable shareholder, (3) (4) levying "according Mar. 25, 1926, ch. 88, 223; n. 3, supra. permitted forms banks, implicitly notwithstanding independent limitations placed obligations.12 23 Although might plausible construed. concern first McCulloch Maryland, Wheat. 316, 579 (1819), declared operation unconstitutionally burdened instrumentality Federal Gov rnment. predecessor 1864 Act, 111, shares; indicated, violate Constitution's protection Wheat., 436-437. But imposes threatening diminish value, questions distinct. responds latter concern, Weston Council Charleston, 449, 481 (1829). imposing undue unduly always directed to, protected, interests. 24 A affecting implicates concerns, confronts barriers taxation. scheme year satisfying requirements invalid satisfied Compare Owensboro Owensboro, 173 664, 676, 682-683, 537, 540, 542-543, 43 850 (1899) banks), Wall., 630-632 unlawful obligations). believe explicitly since 1923, 4, 267, 42 1499, never contended inclusion banks' income.13 25 inferred dicta State's refusal deduct see, Cleveland Lander, 184 394, 396, 46 456 (1902), Van Allen Assessors, 573, 584-588, 229 (1865), has necessary area. context prohibitions co-extensive. proscription And manner computed, 147, 609. cause powers otherwise 3701.14 26 face interdiction decide reached further. left intact. All enumerated lawful. simply ability included. reach effective excepted contained justify unnecessa y ambiguous longer books defeat statute. particularly when, here, "impairment" minimal maximize conflict later one. 618-619, 1911. Given current language, arguably authorize singularly inappropriate hold imposition 3701.15 V 28 contradicts circumstances, controlling. 29 ordered. 30 O'CONNOR took decision REHNQUIST, whom STEVENS joins, dissenting. 32 I agree seems quite broad. Ante, 862. If general provision viewed isolation, persuasive proscribes case do believe, take detached look over hundred years said 548, controls Since today disregards precedents, dissent. entire chapter legal occupied efforts establish versions what loosely referred "national banks." course reflected Court, series early determined Congress' protect States. M'Culloch (1819); Osborn 738, 204 (1824). Somewhat decided Commerce Commissioners, Black 620, 451 (1862); (1864). 34 582, asked "whether possesses power hands stockholders, whose wholly vested stocks bonds States?" argued ensured providing "all individuals, corporations, associations, und r Feb. 1862, 33, 2, 346. 578. 35 While address words, contention turning instead forerunner nothing "shall person body corporate, valuation personal assessment authority. June 1864, 106, 41, 112. recognizes "in terms, sovereign right 586. "Nothing, seem, made plainer, comprehensive subject. several provisions explicit positive scarcely call construction." Ibid. Commonwealth, 353, 359, 701 (1869). 36 1878 revised virtually identical immediate predecessor. somewhat changed provide: "All Ohio trust company, relying similar Allen. reaffirmed claim exemption. explained: 37 "The plaintiff error claims greater immunity Company Revised Statutes gives permits 573 [18 229], 5219—then act 1864—came up consideration. validity sustained, interpreting defined whole holder diminution account kind constituted Of expressing purpose 'could plainer comprehensive.' [that result] obvious brief. destroys individuality recognized, seen, company shareholders, seeks nullify (section 5219) another 3701), want harmony." 113-115, 395-396. 38 Thus, after irrespective excluding 1923 "is now settled court." 114, 27, (1923). (1955), Harlan, writing "this rule firmly law."* 39 As points out, 858-859 rested exclusively unless some indication Sensible meaning given finding indicate fact, indicates intend change exemption; earned ran afoul Sess. (1959). 40 contend recognizing " 'repeals favored.' 863 (quoting (1936)). says, "doctrine cases," ante, 873, "at inconsistency," 868. Ten provides: Contrary suggestion 1969 extend banks; limit 115 Cong.Rec. 38634 (D c. 12, 1969) (remarks Senator Tower); 35399 (Nov. 21, Proxmire). Report "broad law" conclusion "there continuing grant immunities afforded 91-530, 91st (1969). noted above, progeny We therefore, clean slate. Ozawa 260 178, 194, 65, 67, 67 199 (1922): "We recommendation committee, effect, debate desirability, fundamental change, radically modified theretofore maintained great importance. inconceivable ., our law, welded structure policy century administrative acts decisions, deprived force dubious casual fashion." point affirm Appeals. Together Childs certiorari same (see Rule 19.4). read: lieu thereof taxes." 1982, reformulated substantive change. 3124(a). 13, 96 877, 945. former 3124(a), technically January 1, substantively Property Code. Tex.Tax Ann. §§ 21.09, 22.06, 23.11, 25.14 ( 982). times 1960), read, relevant part: "Every banking corporation, national, shall, city town located, render individuals. At making rendition president officer file sworn showing name residence him. Every him bank; failure so, unrendered property. Each assessed. herein thereof, rate moneyed individuals." 223, legislature determine direct, section, place associations located limits. derived therefrom owner income. comply wi h conditions, principally designed discrimination Pub.L. 91-156, 2(a), 83 434. Constitution placing heavier "moneyed capital" State. 813-816, 822-823. These us. Montana Bankers Assn. Dept. Revenue, 177 Mont. 580 P.2d 909 (1978); First Security Bozeman 119, 913 (1978). Georgia Bartow County Board 248 Ga. 703, 285 S.E.2d 920 (1982), appeal docketed, 81-1834. "characterized deliberate thought," subjectively knew 8-9. explain why subjective knowledge worthy concern. Moreover, bars requiring "indirectly" itself asset apart holdings, "included arriving Bank's shares." 303, 304 (Tex.Civ.App.1980). unenacted codified introductory phrase "Except law. phrase, Large prevail whenever inconsistent. Stephan 319 423, 426, 1135, 1136, 87 1490 (1943). aware contain phrase. Both reports, although mentioni g point, (Senate Report); (House Report), 2769, properly forth clause. Report, 22; 25. summarized "both 2; category preserved impliedly excepted. contested levied, six statutes, five Ga.Code 48-6-90 (1982); La.Rev.Stat.Ann. 47:8 (West 1970) 47:1967(C) Cum.Supp.1982); Nev.Rev.Stat. 367:025 (1981); Rev.Code 5725.04 (1980) (repealed, Jan. 1983, (Supp.1982)); Pa.Stat.Ann. tit. 72, 7701 (Purdon Supp.1982). One Texas', specify made. W.Va.Code 11-3-14 Accordingly, 598-599, (1865) (Chase, C.J., concurring); 6085-6986 (1926) (colloquy Reps. Wingo Cooper) (legalizing "a conceal idea"; arrived [that] gave me headache, considerable able comprehend it"); id., 6088 Rep. Stevenson) ("the frequently obscures ideas statesmen stump. taxable, dollar invested practically thing"). Macallen 279 628-629, 49 432, 434-435, 874 (1929); law," added text codifiers supra, almost certainly refer predecessors. drafters probably inserted cross-reference Aug. 1894, 281, 278, legislatively overruled Supervisors, 60 (1869), removing circulating notes currency. W. McClenon Gilbert, Index 1874-1931, 1243 (1933) (listing 3701). preface edition Code, v, said: "Acknowledgement valuable assistance W.H. McClenon. Inclusion on, by, interest. States' inability primary permit 6085 Wingo); T. Anderson, Control Banking 217-219 (1934). "dis egar[d]" dissent contends. Post, 874. observe about relationship results way turned created example, unambiguously, implies, post, 875, independently recognized "irrespective 3701," 876, illegally belong him." 584. 396. upon, application "[a]s respects general": "[t]he [between lawful obligations] turns shares,—the belonging artificial entity stockholders," 26. Fairweather reference ruling "settled appears distinction, 26-27. Any oblique suggestions Finally, embedded" 3381. mentioned Bowers. Bowers internal stockholders' property." relevance theory. Appeals' ascribe implausible outlaw discussed thought pose threat posed Policy logic out disfavored treatment. attempts line suggesting almos everything "dicta," 871, "ambiguous," 14. Neither characterization plausibly accepted saying Likewise, reject reliance necessarily basing approved Certainly, decided, carried beyond 609-610. concludes theory" nonbank corporations. 872, light minimum debatable case; presents essentially go further it.

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