Document: 421 U.S. 599 95 S.Ct. 1872 44 L.Ed.2d 404 UNITED STATES, Appellant,v.STATE TAX COMMISSION OF the State of MISSISSIPPI et al. No. 74—548. Argued April 22, 1975. Decided June 2, Syllabus A Mississippi Tax Commission regulation requires out-of-state liquor distillers and suppliers to collect from military installations within Mississippi, remit Commission, a tax in form wholesale markup on sold installations. The United States has four exercising exclusive jurisdiction over two concurrent other two. paid under protest purchased by various nonappropriated fund activities at these installations, brought action have declared unconstitutional for relief. After this Court's reversal three-judge District opinion denying relief, v. Comm'n, 412 363, 93 2183, 37 1, that court remand again denied Held: Viewing as sales tax, legal incidence rests upon instrumentalities purchasers, First Agricultural Nat. Bank 392 339, 88 2173, 21 1138, hence is imposed its instrumentalities, McCulloch Maryland, 4 Wheat. 319, L.Ed. 579. Pp. 604-614. (a) Since States, view requirement be passed purchaser, federal immunity with respect exclusively enclaves preserved § 107(a) Buck Act. Under provision 105(a) Act, which precludes any person being relieved state or use ground sale occurred whole part area, 'shall not deemed authorize levy collection instrumentality thereof.' 611-613. (b) Twenty-first Amendment did abolish taxes concurrentjurisdiction bases. Cf. supra. 613-614. 378 F.Supp. 558, reversed. Stuart A. Smith, Washington, D.C., appellant. Robert L. Wright, appellees. Mr. Justice BRENNAN delivered Court. 1 Regulation 25 17% 20% installations.1 State. Exclusive exercised Keesler Air Force Base Naval Construction Battalion Center.2 exercise Columbus Meridian Station. issue presented appeal whether imposes an instrumentalities. 2 * controversy between here second time. Shortly after adoption Regulation, asserted before was proposed escrow account amount pending judicial determination legality. refused advised letter 'must invoiced Military collected directly . .' would face criminal prosecution delistment their authority sell Mississippi. thereupon Court Southern complaint sought declaratory judgment injunction against enforcement, refund sums protest.3 moved summary judgment. granted Commission's motion. 340 903 (1972). concluded despite Art. I, 8, cl. 17, Constitution,4 permitted apply purchases destined Kessler Center, exercises jurisdiction, therefore, fortiori, made bases Columbus, are similarly subject tax. We reversed remanded further proceedings. held erred ruling empowered transactions enclaves, conclusion also eliminated essential premise decision concerning (1973). 3 There were, however, issues addressed had been reached therefore case court's initial consideration issues. In argued might properly viewed consented imposition such 'tax' Act 1940, now U.S.C. §§ 105—110. Section provides no may levied area. But thereof ..' directed that, remand, address determine questions should treated occurring area meaning 105(a), and, if so, exception contained nevertheless preserves enclaves. 378—379, S.Ct., 2192—2193. irrelevant applied bases, 316, 579 (1819). decide argument remand. U.S., 380—381, 2193—2194.5 II 5 On held, constituted 'sales tax' inapplicable because distillers, instrumentality, 570—573 (1974). For same reason, States. Id., 569. noted probable 419 1104, 773, 42 800 (1975). reverse. III 6 plainly congressional preservation violate principle supra, prohibiting taxation If invalid principle, it all purchases, both those turn our reasons concluding 7 Before 1966, prohibited possession alcoholic beverages borders. year, legislature enacted 'Local Option Alcoholic Beverage Control Law,' Miss.Code Ann. 67—1—1 seq., created commission sole importer wholesaler beverages, including malt liquor, State, Miss. Code 67—1—41. statute authorized purchase intoxicating liquors them 'to retailers including, discretion commission, retail distributors operating post boundaries state, control distribution seem(s) right proper keeping provisions purposes chapter.' Ibid. add cost price designed cover operation business, yield reasonable profit, keep Mississippi's prices competitive neighboring 27—71—11. Generally, distilled spirits wine. 8 Pursuant statutory promulgated gave exchanges, officers' clubs, ship's stores, option purchasing Commission. orders bear usual charged sales, distiller must fine, imprisonment, delisting, i.e., withdrawal privilege distributing resale See, e.g., 27—71—23. chose thereby continued practice begun when 'dry' 9 correctly determined exchanges similar facilities States: 'it clear clubs 'as operated arms government performance governmental functions partake whatever immunities constitution statutes." F.Supp., 562—563. See Standard Oil Co. Johnson, 316 481, 62 1168, 86 1611 (1942); cf. Paul 371 245, 261, 83 426, 436, 292 (1963). Disttrict constitutes suppliers. can only understood 'enforced contribution provide support government,' standard definition La Franca, 282 568, 572, 51 278, 280, 75 551 (1931). extends 'a whose legal, opposed purely economic, falls government, property instruments 566. 10 determining fell Federal Government but defined 'the legally enforceable, unavoidable liability nonpayment tax.' That error. course, attempted activities, instead compelled it. fact alone determinative rather than 20 1138 (1968), we squarely rejected proposition always liable payment. Massachusetts tangible personal property, national banks own use. "each vendor commonwealth shall purchaser full .." 347, 2178. Like here, Supreme Judicial stated: 'The (is) 'who responsible payment exaction." 353 Mass. 172, 177, 229 N.E.2d 249 (1967). Accordingly, vendor. reversed, stating: 'It appear indisputable terms purchaser. doubt wording Legislature intended purposes, least, intent controlling.' 347—348, Gurley Rhoden, 200, 1605, 110 11 see difference seller remitted distinguish bank few closely areas conferred statute, c. 267, Stat. 1499, amended, 12 548, constitutional question today considered nontaxable instrumentalities.' 341, 2175. controlling significance test formulated where falls, namely, him, establishes matter law purchaser.6 25. direct price,' 'price organizations distiller,' markup' Commission.7 clearly indeed, scheme unavoidably requires—that pass purchasers. And underscore conclusion, Director Alcohlic Division informed (Club) organization located base,' warning who sells without 'collecting said fee violation laws regulations issued pursuant thereto,' penalties provided, delisting. Plainly explicitly military.8 Kern-Limerick, Inc. Scurlock, 347 110, 74 403, 98 546 (1954); Alabama King & Boozer, 314 43, (1941), buttress conclusion. Kern-Limerick unconstitutional, regards purported seller, provided "shall hereby purchaser." 111, 405. Similarly, Boozer required pay him "to due taxpayer tax." 7, 44. requiring passing placed 13 hold, viewing rest instrumentalites States.9 assistance attempt enforce IV 14 194010 bar among things, asserting transaction occurred.' S.Rep.No.1625, 76th Cong., 3d Sess., (1940). provides: 15 'No of, accounting duly taxing therein, having use, levied, area; power extent effect though area.' 16 section 'Congress legislatively acceded transactions.' 562. 17 contains limitation application 105(a). It ..'11 Although recognized 'limits' light holding distillers. Our brings into play. read explicit doctrine announced Chief Marshall '(U) nshaken, rarely questioned, possessions, institutions, itself absence express consent taxation.' County Allegheny, 322 174, 64 908, 911, 1209 (1944). 117—118, 408—409.12 outside coverage 18 Nor does require different result. When last confers regulate—whether licensing, taxation, otherwise—the importation territory (pursuant Constitution).' 375, 2191; Collins Yosemite Park Curry Co., 304 518, 538, 58 1009, 1018, 82 1502 (1938). James Dravo Contracting 302 134, 140, 208, 212, 155 (1937). reach apply: 'Nothing language (Twenty-first) nor history leads (the) extraordinary conclusion' abolished jurisdiction. Department Revenue B. Beam Distilling 377 345—346, 84 1247, 1250, 362 (1964); Hostetter Idlewild Bon Voyage Liquor Corp., 324, 1293, 350 (1964). involved Kentucky whiskey produced Scotland transported through bonded warehouses Kentucky. Export-Import Clause Constitution, 10, repealed clause: 19 'To sustain nothing short completely so far intoxicants concerned. Nothing This never intimated view, claim first time presented, expressly reject it.' 1249. supersede Commerce Clause, 3, permit New York prohibit supervision Customs, departing international airline passengers. '(s)uch patently bizarre demonstrably incorrect.' 332, 1298. 'patently bizarre' 'extraordinary suggest respects 'now Reversed. 22 DOUGLAS REHNQUIST dissent stated dissenting Douglas 381—390, 2194—2199, 'Post ship reservations personnel (including National Guard) ordering event order distiller, copy immediately mailed 'All exempt taxes. monthly covering shipments previous month.' acquired lands composing 835, 40 255, series letters Governor Secretary War. January 9, 1945, War Stimson wrote Bailey acknowledging acquisition 255: 'Accordingly, notice given accepts title heretofore vested obtained.' 1942 1943, Navy filed Declarations Taking three separate actions acquire Center. accordance formally accepted dated December 14, 1942, 6, 1944. parties stipulated markups September 1966 July 31, 1971, totaled $648,421.92. Counsel estimated doubled. Tr. Oral Arg. 6. Article '. Congress Power (t)o Legislation Places Consent Same be, Erection Forts, Magazines, Arsenals, dock-yards, needful Buildings.' merits Government's Supremacy interfere procurement policy, 32 C.F.R. 261.4(c) (1974), established Defense Congress. merit. decision, occasion correct. Land Bismarck Lumber 95, 65 (1941). North Dakota goods, "and added constitute charge, debt consumer user retailer until paid, recoverable manner debts. ." 97, lumber company bank. congressionally immunized taxation. 99, 3. Bellas Hess, Revenue, 386 753, 757 n. 87 1389, 1391, 505 courts 25, American Neill, 380 451, 455—456, 85 1130, 1133—1134, (1965); L.Ed2d event, duty facts constructions rest.' 121, 410, (1954). 'Mississippi's ABC (Alcoholic Control) do impose sanctions he absorbs portion markup's economic burden,' actually 567, merit virtue Bank. 'We cannot accept reasoning below simply there sanction refuses (assuming true), means vendor.' 348, Indeed, threatens sanctions: 'Any supplier ships collecting violation' penalties, Finally, even statement intentions, obviously realities burden markup. Polar Andrews, 375 361, 378, 389 (1964), relied appellees, contrary. Florida seller's activity processing bottling milk (1975), excise gasoline producer-distributor his Norton 534, 71 377, 517 (1951). Of Oct. 787, 54 1059, codified 105 seq. 30, 1947, 61 644. legislative associated amendment 107 1954 describes purpose follows: 'Section sets up certain exceptions (federal) H.R.Rep.No.1981, 83d 2d S.Rep.No.2498, (1954), U.S.Code Cong. Admin.News, p. 3992. (§ Act) thereof, sale, purchase, storage, purchaser,' 107(a). An 'authorized purchaser' 107(b) one buys goods commissaries, voluntary unincorporated organizations. 107(b), Sept. 1954, 4, 68 1227. dealing distinct remaining purchaser.' 3—4 Polar, attack producers gallonage inposed distributed them, As indicated found specifically distinguished situations, 'upon conducted 382, 390. Rather, pointed out 'incidence appears plant Florida, work performed enclave delivery property.'

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