Document: 421 U.S. 200 95 S.Ct. 1605 44 L.Ed.2d 110 W. M. GURLEY, dba Gurley Oil Company, Petitioner,v.Arny RHODEN, etc. No. 73—1734. Argued March 18, 1975. Decided May 12, Syllabus Mississippi imposes a 5% sales tax upon the 'gross proceeds' of retail tangible personal property, including gasoline, and such gross proceeds are computed without deduction for any taxes. also gasoline excise on each gallon sold by distributor, which in case distributor bringing into State otherwise than common carrier, accrues at time when point where is brought State. And federal imposed 'producer,' 26 U.S.C. § 4081(a), defined to include person whom free, 4082(a). Contending that denial taxes computing purpose was unconstitutional as taking property due process violation Fourteenth Amendment, he acts mere collector texes whose legal incidence purchaser-consumer, petitioner, an operator several service stations who purchased his free other States transported it own trucks, paid under protest sued refund state court. His suit dismissed, Supreme Court affirmed, holding both petitioner not purchaser-consumer. Held: The purposes unconstitutional. Pp. 203-212. (a) As reflected language §§ 4081(a) 4082(a), their legislative history, statutory 204-208. (b) Court's falls being consistent with reasonable interpretation statute, conclusive. 208-210. (c) Petitioner's claim liability arises simultaneously results merit, since attach prior sale. 210-211. (d) Petitioner denied equal protection against dealers required part base, prohibition Equal Protection Clause its between taxpayers subject laws. P. 211-212. 288 So.2d 868, affirmed. Charles R. Davis, Jackson, Miss., petitioner. Hunter Gholson, Columbus, respondent. Mr. Justice BRENNAN delivered opinion Court. 1 sales' gasoline. Miss.Code Ann. 27—65—17 (Supp.1974).1 operates sole proprietorship from West Memphis, Ark. He owns five sells four consignment basis. purchases sources Tennessee Arkansas. transports trucks. holds distributor's permit federally licensed because 'producer' within meaning Internal Revenue Code one bought 'producers.'2 adds pump prices amount tax, now nine cents per gallon, 27—55—11 (Supp.1974), 4081(a).3 computes 'without . kind ..' 27 65—3(h) (Supp.1974).4 contends added computation resultant application so much reflects taxes, therefore extent protest, used Chancery Court, Hinds County. Respondent cross-claimed unpaid accruing after filing suit.5 After trial, dismissed petitioner's entered judgment respondent cross-claim. 868. We granted certiorari, 419 1018, 491, 42 291 (1974). affirm. 2 * principal argument two governments Upon premise, argues: 'Consequently, impose amounts received (petitioner) would be him receipts receipts, but rather (the governments). This only violate fundamental conception right justice, (petitioner's) Amendment Brief 37. cites support statement Hoeper v. Tax Comm'n, 284 206, 215 52 120, 122, 76 L.Ed. 248 (1931), 'any attempt measure person's or income reference another contrary law guaranteed Amendment.' Also, advances alternative limited tax. 'a monies held trust agent United (and) is, essence, (that) clearly unconstitutional' violating constitutional immunity taxation States. McCulloch Maryland, 4 Wheat. 316, 579 (1819). 48. 3 arguments can prevail, apparently concedes, if Our task determine rests. II economic burden incident sale merchandise traditionally passed purchasers merchandise. Therefore, decision either determined fact increasing shifted himself has laid rest doubts score raised decisions Panhandle Co. ex rel. Knox, 277 218, 48 451, 72 857 (1928); Indian Motorcycle Co States, 283 570, 51 601, 75 1277 (1931); Kern-Limerick, Inc. Scurlock, 347 110, 74 403, 98 546 (1954), least taxing schemes, here, neither statute pass See Alabama King & Boozer, 314 1, 62 43, 86 (1941); Lash's Products 278 175, 49 100, 73 251 (1929); Wheeler Bridge Supply 281 572, 50 419, 1047 (1930); First Agricultural Nat. Bank 392 339, 88 2173, 20 1138 (1968); American Neill, 380 85 1130, 14 (1965). 5 A majority courts have considered question agreement this case, Martin Service, Department Revenue, Ill.2d 260, 273 N.E.2d 823 (1971); People Werner, 364 Ill. 594, 238 (1936); Sun Gross Income Division, Ind. 111, 149 115 (1958); Thoni Magic Benzol Gas Stations, Inc., 121 Ga.App. 454, 174 S.E.2d 224, aff'd, 226 Ga. 883, 178 173 (1970). Contra, see Review Board Esso Standard 424 Pa. 355, 227 A.2d 657 (1967); cf. State, Mich. 85, 276 N.W. 908 (1937); Comm'r, 71 N.D. 146, 299 447 (1941). independent examination history persuades us 6 wording plainly places definition, distributors Section 4082(a) provides '(a)ny tax-free shall producer gasoline,' expressly 'on (Emphasis added.) congressional lay could more revealed. Persuasive Congress' that, does pay Government cannot collect vendees; no provision making vendee liable payment.6 supra, U.S., 347, S.Ct., 2177. 7 It true purchaser-consumer buys use farm, 6420(a), nonhighway purposes, 6421(a), local transit system, 6421(b), recover payment all 'producer.' But proof Congress Rather, go general treasury, special fund defray cost highway S.Rep. 367, 87th Cong., 1st Sess., p. 1809 (1961), refunds authorized simply reflect determination form increased prices, farmers off-highway users should relieved program, shoudl borne entirely motorists drive highways. Ill.2d, 265, N.E.2d, 827. 8 references President Johnson 'user tax' proving never intended Johnson's message 17, 1965, reform structure stated 'reform will leave excises alcoholic beverages, tobacco, tires, air transportation (and few user-charge excises) H.R.Doc. 173, 89th relies report House Committee Ways Means accompanying H.R. 8371, H.R.Rep. 433, 12—13 (1965); U.S.Code Cong. Admin.News pp. 1658—1659. states: 'Taxes those user highways rough proportion service.' These obviously were made context consideration merely recognition reality bear rejected Illinois irrelevant whether must rests agree with, adopt, court's analysis: 9 'We consider descriptive disputed ultimate practical nontechnical description explainable, consistently producer. relevance issue before us.' 264, 826. 10 hold relied So.2d, 873, properly concluded solely 'producers' purchaser. III 11 course final judicial arbiter falls. State's highest court statutes, 9—10, 45—46, our review respecting guided following: 'When definitive operating incidence, simplified. give finding great weight determining natural effect statute's deemed conclusive.' 455 456, 1133. 12 manifestly 'deemed (Supp.1974) 'attaches .' distribution distributors, bring 'by means through carrier.' primarily reaching conclusion, we say conclusion 'consistent interpretation.' 13 buttressed three-judge District Sharp, 302 F.Supp. 668 (SD Miss.1969). sought declaratory invalid respect Federal Government, agencies, personnel business. distributor-vendor purchaser action. stated: do quarrel contention operation determines squarely looks albeit may ultimately vendee, government.' Id., 671. 15 argues, however, foreclosed (1928). merit. In Chapter 116 1922 Laws Mississippi, amended, predecessor present 27—55—11. claimed account Coast Guard Fleet Gulf Mexico, Veterans' Hospital Gulfport, Miss. over dissents Justices Holmes, Brandeis, Stone McReynolds, applied governmental purposes. dissenters' view vendees adding price 16 did focus distributor. rationale bad because, able shift abandoned view, accepted analysis dissent. 9, 45, held: 'So far different prevailed, Knox ., think longer tenable.' IV 17 Finally, argues even consumer, denying reasons. 18 First, 'Since attaches tax; therefore, there tax.' 47. words, federal, arise simultaneously, circumstance, included other. read reject fall 'producer consumer transaction 870. That statutes course, binding respects indeed, 'reasonable,' seems obvious light express s cases like trucks state.' Further, However, distinction, otherwise, arising circumstance. addressed following reasons, agree. 19 'The producer, duty customer. If done charging higher price. result cost, selling costs incurs product market, raw material, processing delivery. All these includable receipts' 'consideration' receives No reason been given why regarded differently producer-retailer perceive none.' 268, 828. Second, 'since oil states base forced (e.g., Pennsylvania, Standard, supra), then arbitrary imposition class (who tax) deprive Amendment's guarantee laws.' Petitioners 21. patently frivolous. here makes discrimination Act 21 Affirmed. 22 DOUGLAS took case. pertinent part: 'Upon every engaging continuing business whatsoever, hereby levied, assessed collected per-cent (5%) business, except provided herein. n. 3, infra. provides: 'Any privilege (specified) (or) .. 'With Title 'In general. There importer thereof, gallon.' '(a) Producer. Any subpart gasoline.' 27—65—3(h) "Gross value proceeding full exempt $62,782.57, $29,131.19. June 8, 1966, c. 645, Miss.Gen.Laws 1343, 1347, during some years involved, repealed, 'may contrast, Massachusetts (1968), "shall purchaser," vendor add imposed." 2178.

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