Document: 347 U.S. 340 74 S.Ct. 535 98 L.Ed. 744 MILLER BROS. CO.v.STATE OF MARYLAND. No. 160. Argued Jan. 5, 1954. Decided April Rehearing Denied May 3, See 964, 708. Mr. William L. Marbury, Baltimore, Md., for appellant. Francis D. Murnaghan, Jr., appellee. Opinion of the Court by Justice JACKSON, announced REED.* 1 Appellant is a Delaware merchandising corporation which only sells directly to customers at its store in Wilmington, Delaware. It does not take orders mail or telephone. Residents nearby Maryland come and make purchases, some they carry away, are delivered them common carrier, others appellant's own truck. lays upon residents an excise tax on 'the use, storage consumption' State such articles,1 it requires every vendor collect remit State.2 This appellant did do. Finding truck Maryland, seized it, State's highest court has held liable use all goods sold residents, however delivered.3 was against timely contention that taxing act, so construed, conflicts with federal commerce power attempts extend beyond borders violation Due Process Clause Fourteenth Amendment. The parties have stipulated facts detail, and, far as seem important, we set forth Appendix.4 2 grounds advanced holding this: (1) vendor's advertising papers radio stations, though especially directed inhabitants, reached, known reach, their notice; (2) occasional sales circulars mailed former included Maryland; (3) purchases carriers consigned addresses; (4) other vehicles locations. question whether these factors, separately aggregate, each above types sales, establish state's impose duty out-of-state merchant purchaser's tax. 3 venerable if trite observation seizure property under pretext taxation when there no jurisdiction simple confiscation denial due process law. 'No principle better settled than state, even taxation, respect property, limited within jurisdiction.' New York, L.E. & W.R. Co. v. Com. Pennsylvania, 153 628, 646, 14 952, 958, 38 846. 'Where neither person nor imposition would be ultra vires void. If legislature should enact citizens another country taxed same manner persons limits subject authority, any whatsoever, law much nullity conflict most explicit constitutional inhibition. Jurisdiction necessary valid legislative judicial action.' City St. Louis Wiggins Ferry Co., 11 Wall. 423, 430, 20 192. 4 But visible territorial boundaries do always jurisdiction. In last twenty years, revenue needs exceed demands legislatures feel expedient accumulated wealth fixed location state. states therefore turned activities connected movement commerce, exchange consumption. jurisdictional fact event serve conductor, reach may carried objects borders. When taxpayer jurisdiction, sometimes, through him, his extraterritorial income transactions. On hand, taxable transactions, these, nonresident. Whether this one cases must inquire. 5 We dealing relatively new experimental form taxation.5 Taxation possession complementary related but very different purposes. former, fiscal measure considerable importance, effect increasing cost consumer acquiring supplies tax, itself significant producer,6 usually appears support two respects. One protection revenues taking away from inhabitants advantages resort untaxed purchases. local merchants competition those who enabled lower burdens offer prices. respect, protective tariff becoming purchase moment bringing into states.7 collection difficult administrative problem, vendors can compelled simplifies administration. raises questions great importance particular taxpayers, course commercial among appropriation resources properly belonging state where occurs. 6 practical legal statute been applied purchaser. economic consequence, identical making him pay liability arises because sale measured proceeds. time sale, That importation merchandise occurs after complete control knowledge, least buyer. consequence predicated person. understand contend could lay mere transit carrier entering State, see how consistent Commerce Clause. 7 here vendor, acts dealing, subjected afforded create collector's liability. Despite frequency arises, little constructive discussion found responsible commentary rest transactions nonresidents liabilities. Our decisions clear supported, more exists; our pronouncements during period type reconcilable. A few specifically overruled, while longer fully represent present reflect adherence time-honored concept: definite link, minimum connection, between person, transaction seeks 8 Thus, frequently domicile residence, substantial presence sojourn, adequate basis including income,8 property,9 death10 taxes. Since Amendment makes citizen wherein he resides, residence creates universally reciprocal duties allegiance citizen. latter obviously includes taxes, nature largely political matter. Of course, situs regardless citizenship, owner, obvious illustration being realty laid located.11 Also, keeping tangible12 intangible13 personalty give similar (sometimes called business domicile). Certain use14 sale15 whomsoever engages therein, highways certain taxation.16 These overlap incorporation state17 permission there18 forms proportionate company, franchise, capital, property. Recent clearly place elements occurring states, presented peculiar difficulties,19 party product state.20 9 unable find precedent sustaining asserted here. accordance principles earlier cases, recently reached sales. McLeod J. E. Dilworth 322 327, 64 1023, 88 1304. Can she then imposing taxes her inhabitants? strange vulnerable another's itself. 10 relied not, view, her. case maintain branch engaging admittedly retail trying allocate part total nontaxable interstate commerce. Under circumstances, taxpayer, validity allocation. Cf. Nelson Montgomery Ward 312 373, 61 593, 85 897; Sears, Roebuck 359, 586, 888; Norton Department Revenue, 534, 71 377, 95 517. nearest Maryland's position General Trading Tax Comm., 335, 1028, 1309. writer opinion dissented doing made correct application facts, circumstances absent were justify Court's approval collecting traveling agents conduct continuous solicitation followed delivery ordered customers, nonlocal phase acceptance order. Probably, except credit reasons, formality, since hardly incurs soliciting reject. approve decision regard rivalry equivalent merchant. wide gulf active aggressive operation incidental effects general advertising. Here invasion exploitation market Maryland. contrary, resulted purchasers exploit less tax-burdened selling market. incurred used, stored consumed doubts. burden paying cannot shifted foreign absence 12 view case, need consider imposes unjustifiable 13 judgment appealed reversed remanded further proceedings inconsistent herewith. Reversed remanded. consumption becomes hereunder, shall imposed sub-title purchaser.' Flack's Md.Ann.Code, 1951, Art. 81, § 371. 15 'As used sub-title, following terms mean include: 16 '(k) 'Engaged State' means delivering activity connection tangible personal State. term include, methods transacting business. 17 '(1) maintaining, occupying using, permanently temporarily, indirectly, subsidiary agent, whatever name called, office, distribution, sample room place, warehouse 18 '(2) having representative, salesman, canvasser, solicitor operating purpose selling, delivering, property.' 368. 19 'Every required permitted provision notwithstanding following: '(a) order contract delivered, mailed, otherwise transmitted purchaser point outside result medium catalog written advertisement; 21 '(b) closed before said enters State; 22 '(c) provides be, fact, procured manufactured shipped origin; 23 '(d) F.O.B., otherwise, transportation paid purchaser; 24 '(e) intended brought State.' 373. 25 'The officer corporate personally collected, right purchaser, non-payment price payable sale. Any fails pursuant subtitle regulations prescribed hereunder shall, addition penalties, amount uncollected.' 375. Miller Brothers 201 Md. 535, A.2d 286. 'It hereby agreed attorneys named behalf that: 26 '1. Defendant, Company, organized existing laws principal Ninth King Streets, resident agent 27 '2. Defendant times material suit engaged household furniture located 28 '3. 29 Radio Television. television sort, anywhere, January 1, 1951. Prior date, had over Delaware, stations. fall 1950, about six weeks, small Station WDEL-TV broadcasting football scores. facilities stations entirely. never script copy appeal way designed indirectly particularly residents. slogan adopted 'Furniture Fashion Makers Delaware'. 30 Newspapers. advertises regularly Wilmington Morning News Journal evening. also occasionally Sunday Star. All newspapers published undoubtedly circulation portions volume unknown either Plaintiff Defendant. newspaper mentions prepared special customers. No ever done 31 Use Mails. uses automatic card mailing system distributes four pieces year. go out everyone purchased whose address Defendant's records. receive pieces, specific sent mails attracting buyers. buyers alone names addresses 32 '4. matter action, will consume 33 '5. follows: 34 policy accept telephone orders. Most inspection selection, reason refused. maintains mail-order coupons 35 store, thirty per cent (30%) exact item selected customer tagged remainder storeroom 36 Delivery three ways other: 37 article taken Within July 1947, December 31, $2,500 manner. motor vehicle owned operated borne charge therefor $8,000 39 '(3) Such independent trucking line authorized Interstate Commission. $1,500 40 '6. (a) Payment completed prior delivery. 41 exactly credit. conditional contracts many instances, notes slip without requiring agreement, method distinction designated 60 90-day account. At past eight years recorded 42 repossessed elsewhere fifteen years. occasion accepted back satisfactory customer. delinquency payments, letters, mails. During ten instituted action Magistrate's employs collectors. payments check, cash money 43 C.O.C. deliveries made. 44 '7. Except extent, any, disclosed above, maintain, occupy maintained, occupied branch, rooms 45 '8. defendant have, had, canvasser same. 46 '9. been, qualified registered 47 '10. March 10, 1952, Comptroller assessed deficiency $356.40, $240.00 thereof representing claimed due, $32.40 interest $84.00 penalty based referred paragraph above. 48 '11. permit Section Article 81 Annotated Code (1947 Supp.). 49 '12. for, license fee obtain, issued, Sections 331—333 50 '13. indicated engage Maryland.' Criz, Tax, (Public Administration Service 78, 1941); Hellerstein, Local Taxation, 4—12, 338; Haig Shoup, Sales American States, 83 (1934). supra, 3—4, 36—39. For example features McLees, After Year, Ark.L.Rev. 337, 339 (1950). 1—2; 116, 408—409, 418; Jacoby, Retail c. VI (1938). Maguire Trefry, 253 12, 417, 739; Lawrence 286 276, 52 556, 76 1102; People York ex rel. Cohn Graves, 300 308, 57 466, 666; Guaranty Trust Virginia, 305 19, 59 16. footnotes guide holdings standards sanctioned Court. deal intangible apply maxim mobilia sequuntur personam. Kirtland Hotchkiss, 100 491, 558; Darnell Indiana, 226 390, 120, 267; Hawley Malden, 232 201, 58 477; Fidelity Columbia Louisville, 245 54, 40, 62 145; Citizens National Bank Durr, 257 99, 15, 66 149; Klein Board Supervisors, 282 24, 51 16, 75 140; Greenough Assessors Newport, 331 486, 67 1400, 91 1621. Nevada Sedgwick, 104 111, 703; Bonaparte Court, 592, 595, 845; Sturges Carter, 114 511, 521, 1014, 1019, 240; Dewey Des Moines, 173 193, 379, 665; Kidd Alabama, 188 730, 731, 401, 669. Blackstone Miller, 189, 277, 439; Bullen Wisconsin, 240 625, 473, 830; Blodgett Silberman, 277 410, 72 749; Farmers Loan Minnesota, 280 204, 98, 371; Baldwin Missouri, 281 436, 1056; Beidler South Carolina 131; First Boston Maine, 284 312, 174, 313; Curry McCanless, 307 357, 900, 1339; Graves Elliott, 383, 913, 1356; Schmidlapp, 315 657, 870, 86 1097; Central Hanover Kelly, 319 94, 63 945, 87 1282. Carpenter How. 456, 127; Wachovia Doughton, 272 567, 202, 413; Burnet Brooks, 288 378, 400—405, 53 457, 463—465, 77 844; Worcester County Riley, 302 292, 185, 82 268; Pearson McGraw, 308 313, 211, 84 293. Keeney 222 525, 537, 105, 108, 56 299, involved inter vivos transfer stocks bonds. attempted direct land Union Refrigerator Transit Kentucky, 199 194, 36, 37, 150. Instead, speak problem dicta interests attached realty, incorporeal hereditaments. Witherspoon Duncan, 210, 339; re Foreign-Held Bonds, 300, 319, 179; Savings Society Multnomah County, 169 421, 392, 803; Paddell 211 446, 139, 275; 326, 176, Senior Branden, 295 422, 55 800, 79 1520. Louisville Jeffersonville 385, 463, 513; R. Jersey City, 209 896. Coe Errol, 116 517, 524, 475, 476, 715; Adams Express Ohio Auditor, 165 226—227, 305, 311, 683; Hall, 174 70, 599, 899; Lynch, 177 149, 631, 708; Carstairs Cochran, 193 318, 596; Old Dominion S.S. 198 686, 1059; Hannis Distilling Mayor Council, 216 285, 54 482; Johnson Oil Refining Oklahoma Mitchell, 290 158, 152, 78 238; Schnader, 293 112, 29, 228; Ott Mississippi Valley Barge Line 336 169, 69 432, 93 585. Hays Pacific Mail 596, 254; 192; Morgan Parham, 471, 302; Gloucester 196, 210—211, 826, 831, 832, 158; Marye Baltimore O.R. 127 117, 123, 1037, 1039, 94; Pullman's Palace Car 141 18, 22, 876, 877, 613; Pittsburgh, C., C. L.R. Backus, 154 427—428, 1114, 1117, 1031; Henderson Bridge 609, 613, 622, 553, 559, 561, 564, 823 (bridge); Diamond Match Ontonagon, 82, 266, 394; Fargo Hart, 490, 498, 761; 341, 669, 1077; 150; Thompson 340, 347, 533, 536, 822; Gromer Standard Dredging 224 362, 371—372, 499, 502, 503, 801; Wells, Nevada, 248 165, 167, 62, 63, 190; Tank Wright, 249 275, 602; Frick 268 603, 1058; Treichler 338 251, 70 94 37; Peck, 342 382, 309, 96 427. sufficiently situated become mass merely treated rather one. E.g., Brown Houston, 632 633, 1091, 1096, 257; Pittsburg Southern Coal Bates, 156 577, 588—589, 415, 419, 538; Kelley Rhoads, 259, 359; Crain, 754; Champlain Realty Brattleboro, 260 366, 146, 309. As various counties single Columbus 151 470, 396, 238. Tappan Merchants' Bank, 499 500, 189; 166 604, 965; Orleans Stempel, 175 110, 174; Bristol Washington 133, 585, 701; Comptoir D'Escompte, 191 388, 109, 232; Metropolitan Life Ins. Orleans, 205 395, 853; Liverpool London Globe Assessors, 221 346, 550, 762; Orient 358, 554, 769; Wheeler Sohmer, 233 434, 607, 1030; Rogers Hennepin 184, 265, 594; Iowa Slimmer, 115, 33, Safe Deposit 83, 59, 180; Virginia Imperial 171; Wheeling Steel Corp. Fox, 298 773, 80 1143; Whitney 299 237, 285; Stock 301 234, 677, 1061. Northern Cent. Railroad Jackson, 262, 88; 171, 527, 960; Scottish Bowland, 196 611, 619 620, 345, 619; Buck Beach, 206 712, 1106; Selliger 213 200, 449, Brooke Norfolk, 27, 767. 523, 386, 597. appear well nature. generally discussed question. Bowman Continental 256 642, 606, 65 1139; Eastern Air Transport, Inc., 285 147, 673; Gregg Dyeing Query, 472, 1232; Nashville, Wallace, 249, 730; Edelman Boeing 289 591, 1155; Monamotor Johnson, 292 86, 575, 1141; Henneford Silas Mason 814. footnote 20. Hatch Reardon, 204 158—159, 188, 189—190, 415. Treasury Wood Preserving Corp., 313 885, 1188; 1304; Sonneborn Bros. Cureton, 262 506, 643, 1095; Graniteville Mfg. 283 376, 515, 1126 (creation promissory notes). 19. Kane Jersey, 242 160, 30, 222; Busses Blodgett, 276 245, 230, 551; Baking Woodring, 352, Hicklin Coney, 142, 247. Hendrick 235 610, 140, 385; Clark Poor, 274 702, 1199; Sprout Bend, 163, 833; Transit, Lindsey, 183, 380, 953; Paul Gray, 306 583, 744, 1001; Bode Barrett, 344 73 468, 97 567. Coite, 594, 206, 231, 150, 532, Corry Council 297, 556; Ayer Lord Tie 202 409, 679, 1082; H.R.R. 584, 714, 13, 96; Kansas Ft. S. M.R. Botkin, 227, 232, 235, 261, 263, 617; M. B.R. Stiles, 118—119, 58, 60—61, 176; Cream Wheat Grand Forks, 325, 558, 931; Schwab Richardson, 263 88, 60, 68 183; Matson Navigation Equalization, 297 441, 791; Schuylkill 514—516, 295, 392; Newark Fire Appeals, 918, 1312; Northwest Airlines, Inc. 950, 1283. Baker Baker, Eccles 394, 400 154, 386; Maxwell Bugbee, 250 539—540, 2, 6, 1124; Comm. Aldrich, 316 1008, 1358. company incorporation. Cases (Taylor Secor), 92 663; Horn Silver Mining 143 403, 164; Baltic Massachusetts, 231 68, Southwestern Arkansas, 350, 364, 103, 265; Equitable Assurance 238 143, 829, 1239; Underwood Typewriter Chamberlain, 254 113, 45, 165; Pullman 261 330, 682; Bass, Ratcliff Gretton, Ltd. 266 271, 282; Great 278 191, Atlantic Tea Grosjean, 412, 424—427, 772, 776—778, 1193; 29—31, 75, 78—79, 24; Illinois 309 157, 670; Wisconsin Penney 311 435, 246, International Harvester 1060, 1373; Evatt, 329 416, 420—421, 444, 390; Pipe Stone, 337 662, 667—668, 1264, 1266, 1267, 1613. Erie 492, 595; Western Telegraph Attorney General, 125 530, 548, 961, 963, 790; Maine Trunk 142 217, 227—228, 121, 122, 994; California, 162 91, 126, 766, 779, 903; Missouri Gottlieb, 190 1116; Coleman, 38, 190, 198, 355; 56, 234—235, 378; Ludwig 162—163, 280, 423; Atchison, T. S.F.R. O'Connor, 223 216, 436; Provident 239 34, 167; Looney Crane 178, 187—188, 85, 87, 230; Paper 246 135, 624; Wallace Hines, 66, 782; Watts, 519, 192, 195, 375; Druesedow, 137, 212; Air-Way Electric Appliance Day, 71, 81—82, 14, 169; Alpha Portland Cement 203, 217—218, 477, 480, 481, 916; Rhode Island Hospital 270 69, 256, 475; Hans Ress' Sons, North Maxwell, 879; Connecticut 303 77, Gas United 526, 530—531, 1106, 1108, 1109, 1434. Armour 267, 547; L.E.R. 314, 488, 489, 946; Rowley Chicago Northwestern 102, 55, James Dravo Contracting 134, 138—140, 208, 212, 155; Nippert Richmond, 327 423—424, 589, 590, 90 760. applies individuals Ficklen Taxing Dist. Shelby District, 145 810, 601; Shaffer 252 221, 445; Travis Yale Towne 228, 460. Haavik Alaska Packers Ass'n, 510, 177, 414, poll individual working domiciliary there. Compare Treasury, 1030, 1313; McGoldrick Berwind-White 565; Felt Tarrant 404, 584. Gallagher, 180—181, 389, 1309; 897, 488. DOUGLAS, whom THE CHIEF JUSTICE, BLACK CLARK, concur, dissenting. States increasingly turning raise educate, protect, growing number citizens. Unless out-of-state, fertile opportunity wants benefits buy out-of-state. And just-across-the-state-line capitalize opportunity. today's more. I difficulty collector Commission, clerks slips arrange shipment goods, surely know destined Hence add bill requests minimal burden. trouble.1 sought indicating surprise unfairly, considerations play. pleads immunity, ignorance harshness application. contact sell cash-and-carry knowledge destination goods; casual, non-recurring visit. Rather injected media reaching consumers effected trucks carriers.2 obtained Pennoyer Neff, Ownbey Morgan, 433, 837. chooses keep entirely, courts it. long there, nothing prevent knows homes. * Appendix. [Page 347]. APPENDIX TO OPINION COURT reads: 'An levied effective date Act, section computed *.' 369. provisions vendor-collector retain percent gross compensation remittance expenses. 384. both circulate across that, four-and-a-half year period, $12,000 worth use. Approximately two-thirds

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