Document: 355 U.S. 484 78 S.Ct. 483 2 L.Ed.2d 436 UNITED STATES of America, Appellant,v.TOWNSHIP OF MUSKEGON, a Municipal Corporation, et al. CONTINENTAL MOTORS CORPORATION, Etc., Appellant, v. TOWNSHIP Nos. 37, 38. Argued Nov. 14, 1957. Decided March 3, 1958. Mr. Roger Fisher, Washington, D.C., for appellant United States america. Victor W. Klein, Detroit, Mich., Continental Motors Corp. Harold M. Street, Muskegon, appellees. Justice BLACK delivered the opinion Court. 1 As Government points out in its jurisdictional statement 'this appeal presents precisely same basic question' as is raised No. 26, City 466, 474, also decided today. That question whether Public Act 189, 1953, State Michigan unconstitutional applied to corporation using government property connection with business conducted own private gain. In this case owns manufacturing plant at Michigan. 1952 it granted Corporation right use course performing several supply contracts had Government. No rent was charged such but agreed not include any part cost facilities furnished by price goods supplied under contracts. 3 On January 1, 1954, assessed tax 189. levied because Continental's tax-exempt and measured value exempt which then using. refused pay suit brought state authorities court recover amount assessed. The intervened, contending that invalid imposed levy on property. But lower rejected contention entered judgment plaintiffs. Supreme Court affirmed, 346 Mich. 218, 77 N.W.2d 799. We noted probable jurisdiction an from decision both States, 352 963, 357, 319, now affirm below basis our 26. 4 There are only two factual differences between First, formal lease 'permit'; second, performance do believe either fact compels different result. 5 Constitutional immunity taxation does rest insubstantial formalities party formally designated 'lessee.' Otherwise could be conferred simple stroke draftsman's pen. vital thing statute, we think permissibly so, commercial activities. might well if reserved control over activities financial gain properly called 'servant' agency terms. here so assimilated become one constituent parts. It free within broad limits thought advantageous convenient maximizing profits them. 6 If certain conditions can profit—and set forth 26 can—the carrying contract materially alter case. still acting enterprise selling States. loose way 'instrumentality' no more than other supplying his number cases has upheld taxes contractors services even though they were closely supervised these functions See, e.g., James Dravo Contracting Co., 302 134, 58 208, 82 L.Ed. 155; Alabama King & Boozer, 314 62 43, 86 3; Curry 48, 9; Wilson Cook, 327 66 663, 90 793. 7 seems squarely point. contractor pursuant cost-plus purchased materials. These materials shipped construction project where used contract. By agreement title passed soon vendor. contractor, based materials, them after been work site. This unanimously tax, although clearly amounted 8 Affirmed. 9 WHITTAKER, whom BURTON joins, dissenting. 10 Though involved appeals rests upon statute generally legal principles today, facts sufficiently render there sustained. 11 Here did nor plant. simply into providing latter would produce military supplies equal cost, plus fixed fee; done Government's without (and furnish facilities, required supplies) 'cost' charge 12 Continental, thus, leasehold estate, tenancy, or interest plant; belonged provided which, contract, production supplies. thus plain us itself actually full sense 'Government,' being abstraction, ever plants. Allegheny County, 322 174, 187—188, 64 908, 915—916, 88 1209. Therefore, estate real taxed, but, moreover, independent subjected tax. must follow, majority's interpretation law erroneous—that State, however may viewed, direct against is, hence, invalid. 13 For reasons those stated my dissenting Detroit Murray 511, 475, 462, 479, I dissent, reverse below. 14 concurring opinions FRANKFURTER HARLAN, see 489, 505, 486, 492.

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