Document: 472 U.S. 14 105 S.Ct. 2465 86 L.Ed.2d 11 Norman WILLIAMS and Susan Levine, Appellantsv.VERMONT et al. No. 84-592. Argued March 19, 1985. Decided June 4, Syllabus Vermont collects a use tax when cars are registered with it, but the is not imposed if car was purchased in sales has been paid. The also reduced by amount of any or paid to another State that would afford credit for taxes similar circumstances. available, however, only registrant resident at time he taxes. Appellants, who bought outside before becoming residents, were required pay full order register their Vermont. In proceedings Superior Court, appellants alleged Vermont's failure them out-of-state they had violated, inter alia, Equal Protection Clause Fourteenth Amendment because provided case vehicles acquired residents. Rejecting appellants' contention, court dismissed complaint. Supreme Court affirmed citation decision handed down same day, Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, which it rejected equal protection challenge credit, concluding statute rationally related legitimate state interest raising revenue maintain improve highways, placed burden on those used them. Held: When viewed its face, have stated claim discrimination prohibited Clause. Pp. 18-28. (a) While asserts applies residents without first having elsewhere, purchases, pays on, registers must upon his return, does appear ruling Leverson, supra, construed exemption such manner. Instead, every indication enjoys reciprocating State, even there registering 18-21. (b) An as challenged here will be sustained legislature could reasonably concluded classification promote purpose. No purpose furthered discriminatory here. Residence purchase wholly arbitrary basis distinguish among present registrants—at least elsewhere coming distinction between bears no relation statutory maintenance improvement roads. customary rationale tax—relating protecting local merchants from competition which, lower nonexistent burdens, can offer prices—has application purchases made taxing purchase. Nor justified policy making highways contribute improvement, encouraging interstate commerce enabling faced limited automobile offerings home, shop penalty. 21-27. 649, 478 993, reversed remanded. Charles Williams, Burlington, Vt., appellants. Andrew M. Eschen, Waterbury, appellees. Justice WHITE delivered opinion Court. 1 it. grant credit. We agree this denies laws. 2 * Appellants' complaint, an answer filed, sets out following facts. December 1980, appellant Williams new Illinois, paying five-percent tax. Three months later, moved Vermont, bringing him. He subsequently attempted Department Motor Vehicles refused car. responded suing Federal District relying 28 U.S.C. § 1341, then tax, came $172, unsuccessfully sought refund Vehicles, filed suit Court.1 3 complaint number constitutional defects State's One forbade deny while providing "acquired Vermont." Vt.Stat.Ann., Tit. 32, 8911(9) (1981). 4 Acknowledging "does afford, treatment nonresidents out-of-state," App. 14, considered relevant inquiry "whether occurs within state," id., 15. It saw discrimination, reasoning practice always reciprocal States excuse payment therefore against. found right travel, violation Privileges Immunities Clause, interference commerce. 5 affirmed, 993 (1984), appeal dism'd want substantial federal question, 469 926, 316, 83 255 pet. rehearing pending, 84-315. essentially identical brought former Wisconsin who, like appellants, home obliged upheld First, argument denying infringed travel. did impose penalty moving Vermont—the obligation incurred one's there. Absent penalty, given fundamental car, minimal scrutiny. encouraged States. This goal granting already elsewhere. went hold come into play right, qualifying privilege immunity involved. Commerce challenge, viewing straightforward goods rest 6 denied rehearing, appeal. noted probable jurisdiction, 1085, 588, 698 we now reverse. II 7 Vehicle Purchase Use Tax, ch. 219 (1981), distinct general taxes.2 intended "improve highway systems, principal bonds issued systems cost administering chapter." 8901. goes "transportation fund." 8912. two sorts: four-percent motor vehicle resident, 8903(a), registration unless paid, 8903(b).3 A exempt, including, example, owned United States, charitable institutions, transferred family. See generally 8911. Prior September 1, exempted "pleasure cars, owners thirty days province other than 8911(6) (1970 Supp.1981) (repealed). That provision Since repeal, registrants regardless whether jurisdiction 8 critical case. Section provides apply 9 person applying collecting pro-rata under If less due shall difference." 10 There some dispute reach provision. Appellants assert that, light provision, exempt disagrees, asserting According bearing submission, accepted, negate treated differently circumstances.4 For several reasons, do believe manner.5 contained refers language face exempts appears proceeded basis. set comprehensive list conspicuously absent. 532, A.2d, 1034. times points nonreciprocal enjoy Id., 533, 1034, 1035. Had believed purchasing one expected said so. Similarly, someone position "is exactly manner all nonexempt persons, including state." understood appellees, just previously State. 12 More fundamentally, accepted narrow construction urges, surely suffers unequal necessity justify impact simple claim, occasion address level scrutiny applied identify imposing differential nonresident. need rational adequate justification extending nonresidents.6 13 short, period receive Appellees own say-so contrary. Tr. Oral Arg. 39. Pointing nothing below support reading, us add clause cannot so stronger authority. proceed understanding Vermonter III expressly reserved question against Southern Pacific Co. Gallagher, 306 167, 172, 59 389, 391, L.Ed. 586 (1939); Henneford Silas Mason Co., 300 577, 587, 57 524, 529, 81 814 (1937). Columbia three provide although reciprocity may required. CCH, Tax Guide 6013 (1984). As above, see n. 2, regard Such requirement endorsed court, Montgomery Ward & Board Equalization, 272 Cal.App.2d 728, 78 Cal.Rptr. 373 (1969), cert. denied, 396 1040, 90 688, 24 684 (1970), advocated 20 years ago much-cited Report Willis Subcommittee, H.R.Rep. 565, 89th Cong., 1st Sess. 1136, 1177-1178 (1965), adopted Multistate Compact, Art. V, significant commentary, e.g., J. Hellerstein W. Hellerstein, Local Taxation 637-638 (1978); Developments Law: Limits Interstate Business, 75 Harv.L.Rev. 953, 999-1000 (1962). urge requirement. Brief 31-35. Once again, find unnecessary question. Whatever rule be, violates 15 many pointed structuring internal taxation schemes "the large leeway classifications drawing lines judgment produce reasonable taxation." Lehnhausen Lake Shore Auto Parts 410 356, 359, 93 1001, 1003, 35 351 (1973). reluctant interfere legislative decisions area. Regan Representation Washington, 461 540, 547-548, 103 1997, 2001-2002, 76 129 (1983); San Antonio Independent School Rodriguez, 411 40-41, 1278, 1300-1301, 36 16 (1973); Allied Stores Ohio, Inc. Bowers, 358 522, 526-527, 79 437, 440-441, 480 (1959). "will purpose." Exxon Corp. Eagerton, 462 176, 196, 2296, 2308, 497 (1983). Schweiker Wilson, 450 221, 234-235, 101 1074, 1082-1083, 67 186 perceive purpose, exemption. holding base broader base, "equal in-state taxpayers similarly situated condition precedent valid imported out-of-state." Halliburton Oil Well Reily, 64, 70, 1201, 1204, 202 (1963).7 treat borders unequally solely different residences incorporation. WHYY Glassboro, 393 117, 119, 89 286, 287, 21 242 (1968); Wheeling Steel Glander, 337 562, 571-572, 69 1291, 1296-1297, 1544 (1949). case, residence Vermont.8 Having purposes. Each using purposes identically served, burden, each. Zobel 457 55, 61, 102 2309, 2313, 72 672 (1982); cf. Texaco, Short, 454 516, 781, 798, 70 738 (1982). Wheeling, "accorded treatment, inequality slightest difference [Vermont's] decisive transaction, the[ir] residence." U.S., 572, S.Ct., 1297. 17 ways, typical scheme. proceeds go transportation fund rather revenue. Perhaps result, narrower most, Conversely, items taxed noted, provisions neither these features. supra. 18 Applied exceeds usual justifications perceived necessary complement designed " 'protect state's revenues taking away advantages traveling make untaxed protect prices.' 527, 1032, quoting Rowe-Genereux, Taxes, 138 130, 133-134, 1345, 1347 (1980); 581, 526. These home-state transactions seen lost sales, certainly ones result Imposing way protects business. structure, combination opposite provisions: disincentive resident's otherwise. limits commerce, second help 19 Despite passing reference standard taxes, then, plausible place—apart desire raise funds—is principle roads should supported "Vermont's basic policy" improvement. 1034.9 Yet explain dissent out, post, 32-33, "directly contrary" user-pays principle. "basic arguably supports imposition denial them; reason spare burden. response court's statement allow people position, Vermonters "would run counter policies requiring user contributions state, loss true Granting "counter Ibid. primary explanation "appears based out-of-staters states secure knowledge subject duplicate states, assumption few, any, dollars through exercise comity." 1034-1035. 22 However, indirect means nonresidents. 8903(a). 23 take tack, suggesting encourage 35-36, 7. sound plausible, fails issue. Those spares further facilitating Vermonters' extend facilitation use. choose penalize old benefit ones. fact beneficent double mean beneficence distributed arbitrarily. Finally, "treated benefited equally legitimacy place. deflect observing burdened class situated. reflect pre-existing differences; create bootstraps. "The requires more law nondiscriminatory establishes." Rinaldi Yeager, 384 305, 308, 1497, 1499, 577 (1966). 25 sum, after buying To free group otherwise applicable IV 26 Our quite narrow, conclude emphasizing what decide. consider various arguments again put side circumstances addition, note action filed. "dominant theme running cases" "concern actuality operation." Halliburton, 69, 1203. conceivable record developed, turn operate fashion. pleadings, possible relevance law, Bacchus Imports, Ltd. Dias, 468 263, 277, 104 3049, 3058, 82 200 express appropriate remedy. 27 unconstitutional discrimination. accordingly reversed, remanded inconsistent opinion. ordered. 29 POWELL took part 30 BRENNAN, concurring. 31 I join Court's reasons therein my concurring 65, 2315, General distinctions kind clearly, though indirectly, threaten "federal migration." 66, 2316. makes "supported independent itself." 2318. 32 BLACKMUN, whom REHNQUIST O'CONNOR join, dissenting. 33 draws constitutionality discriminate anyone, and, appears, never fashion anyone else. Nevertheless, imagined fanciful hypothetical threatened violate Legislature rejects conjecture. 34 recognizes, defray building maintaining Generally speaking, assessed. end likely users assessed overlapping series credits exemptions built system resolve common cases fall pattern Vermonter's either However complex redundant, exceptions accomplish purposes: facilitate flow ensuring alike penalized foreign possibility primarily forced Thus along apparently charge purchaser automobile. 23, 463, 8903(a) (Supp.1984); J.C. Penney Hardesty, 164 W.Va. 525, 538-539, 264 S.E.2d 604, 613 (1980). ensures purchasers except leave issue litigation accomplishes much whatever reason, returns excused extent Again, facilitates automobiles, helps ensure buyer States' one.1 37 worked work Mr. Ms. Levine. her each there, she Thus, buys Illinois New York, drives individual uses most appropriately found, [appellants'] commerce-facilitating persons situation. beyond across lines. 38 asserted being concededly legitimate, achieve abstract effective particular instances, easily pass routinely statutes. See, subjected laws microscopic few enactments survive, managed, feels, seems nor strict, strange unto itself. Out somewhere, imagines, wishes better 39 phantom beneficiary leaves automobile, purchase, lives while, entitled exception nonresident not. phantom's Vermont" terms statute. B 40 majority correctly understands exception, disappears. problem identifies me largely making. finds pleaded discussed courts. submission Vermonter, situation, applied. ambiguously worded, dism'd, 84-315, failed explicitly accept view Ante, 19-21.2 cloud reject interpretation statute's terms. concerned about type concern clear courts 41 idle speculate how interpret remand, inappropriate observe force context phrase state" immediately reading best comports enacting prevent buy live doubly taxed. Nothing exception/credit scheme suggests ever wished up temporary residency ultimately one. Allowing directly contrary 8901 8911 itself.3 evidence history administrative language. C 42 Even correct 8911(9), identified still created governmental sufficient satisfy challenges provisions. admits assess upkeep. becomes And thought close. 43 relocate not, presumed reside. Most reside future move automobiles On hand, return cars. taxed, hardly irrational, both out-of-state, render irrational. demands simply perfectly single out. resort close precise, scientific uniformity composition, value." 441, (1959).4 44 "residence 23. ignores classification. wish "distinguish registrants," Residency irrational enact Moreover, qualification misstates statute, for, indicated, depending where live, acquire them, far "palpably arbitrary" struck grounds. 441. D 45 interpreted generate declared "wholly arbitrary," felicitously retreats sufficiently strip significance. actually discriminates, told, 'the [the statute's] operation.' 28, Cementing 1203, (1963). implication statutes pleadings plaintiff concoct matter farfetched. Were application, mischievous especially when, here, seized particularity does, power intact. 46 follows actions save regulation clarifying scope exception. introduce trial concerning application. Or show road use—a proposition until today self-evident. remand applied, too, litigation. 47 This, approaches status "noncase, seemingly attractive high-sounding suggestions unfairness." Austin Hampshire, 420 656, 670, 95 1191, 1199, 530 (1975) (dissenting opinion).5 Levine delayed day failing law.6 Today little delay forcing develop prove rationality manifestly distinction. deprives $282 entitled. 48 affirm Appellant 1979. She York year seven-percent Upon 1982, $110. successfully intervene Williams' suit. 233 controversy arisen ordinary "property State," 9744(a)(2), property agreement, 9744(a)(3). subsections. Both ceiling $600. price. §§ 8902(4), (5) (Supp.1984). car's low book value registration. 15; 8907. operated says might discriminatory, theory. brings whereas doing thing But challenge. qualify exemption, done same. forward briefs Leverson. 83-139 (Vt.Sup.Ct.), pp. 18-19, 2; Appellee 83-157 17-18, 3. consistent Post, our business statutes, inconsistency. literal whenever quickly Significantly, "at transferring registration." 8903(b) (emphasis added); 8905(b). "state paid." added). extended straight meaningless. itself notes, 36, 5, circumstances, superfluous. assume passed effect. decided dispositive. way, give point emphasis distinguished residence. 583-584, 527-528, disagree situated, preferential resident. 34. merely argues inequity acceptable imprecision 33-35. Under rational-basis scrutiny, course allowed joints. choice proxy criterion—here, use—cannot casual this, particularly precise direct drawn. nonrecurring pegged exceedingly loosely-tailored end. use, includes irrelevant variable luxury account owner selling during useful life. Reliance annual fees accurate measure current seem closely violation. despite looseness fit, hard pressed say funding "If 'reasonable basis,' offend Constitution 'is mathematical nicety results inequality.' Dandridge 397 471, 485, 1153, 1161, 491 Lindsley Natural Carbonic Gas 220 78, 337, 340, 55 369 (1911). rare event use-tax infra, receives whose used, purchased. Because reciprocal, payments exemptions, thus, entirely purchaser, matters nonsummary discriminate: exacts nonresidents, Plaintiffs demonstrate cars." original). meant particular, specific allowance certain initially out-of-state. 8911(11) "owned member armed forces active duty" section partially redundant accurate. Other subsections speak classified registered. registered" States," religious groups, operated" dealers, physically handicapped persons." 8911(1), (2), (3), (4), (12). Only contrast, speaks "acquired." "States otherwise, easy task ferret inconsistencies schemes. After all, worded registration, residency, wishes, imagine exclusively He, noncase sense well. forgo (1980), well superfluous, credited pursuant 8911(9). doubt offering protection. become 4(30), 301 (1978). liability arose six employment became 8902(2) February 1981, August year. attempt expired 30, 1981. November 1979, ibid., May 1980. expire.

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