Source: https://supreme.justia.com/cases/federal/us/393/117/
Timestamp: 2019-04-22 00:58:48+00:00

Document:
Appellant, a Pennsylvania nonprofit corporation, operates a noncommercial television station. It has broadcasting facilities in New Jersey and has registered and qualified to transact business there. Appellant's request for exemption, as a nonprofit corporation, from New Jersey real and personal property taxes was denied by local tax boards. The Superior Court held that, while appellant qualified for the exemption in all other respects, the statute exempted only New Jersey nonprofit corporations. The State Supreme Court rejected appellant's argument that it was denied equal protection by being discriminated against solely because of its foreign incorporation.
Held: When a foreign corporation is permitted to enter a State, it is entitled to equal protection with domestic corporations, and New Jersey cannot deny appellant an opportunity equivalent to that of a domestic corporation to show that it meets the requirements for a nonprofit corporation under local law.
50 N.J. 6, 231 A.2d 608, reversed and remanded.
91 N.J.Super. 269, 219 A.2d 893. On appeal to the Supreme Court of New Jersey, the appellant argued for the first time that the statute denied it equal protection of the laws in violation of the Fourteenth Amendment to the Constitution by discriminating against it solely on the basis of its foreign incorporation. The Supreme Court noted that it had discretion not to consider a question not raised in the lower court, but nevertheless proceeded to decide the constitutional question because of its widespread importance. It concluded that the classification was not wholly irrational, and sustained the denial of exemption. [Footnote 3] 50 N.J. 6, 231 A.2d 608. We noted probable jurisdiction to consider the constitutional question thus raised. 390 U.S. 979. Cf. Raley v. Ohio, 360 U. S. 423, 360 U. S. 436.
Wheeling Steel Corp. v. Glander, 337 U. S. 562, 337 U. S. 571-572. See Reserve Life Ins. Co. v. Bowers, 380 U. S. 258; Hanover Fire Ins. Co. v. Harding, 272 U. S. 494; Southern R. Co. v.
Greene, 216 U. S. 400. Yet New Jersey has denied the appellant a tax exemption which it accords other nonprofit corporations solely because of the appellant's foreign incorporation. This is not a case in which the exemption was withheld by reason of the foreign corporation's failure or inability to benefit the State in the same measure as do domestic nonprofit corporations. Compare Board of Education v. Illinois, 203 U. S. 553. Nor have the appellees advanced any other distinction between this appellant and domestic nonprofit corporations which would justify the inequality of treatment.
"accorded equal treatment, and the inequality is not because of the slightest difference in [New Jersey's] relation to the decisive transaction, but solely because of the different residence of the owner."
337 U.S. at 337 U. S. 572.
MR. JUSTICE BLACK dissents from the reversal of this case, and would affirm it.
N.J.Stat.Ann. § 14:15-2 requires a foreign corporation, in order to obtain a certificate of authorization to transact business in the State, to file with the Secretary of State a copy of its charter and a statement setting forth the amounts of its authorized and issued capital stock, the character of the business to be transacted in the State, the place of the principal office within the State, and the name of a resident agent for the service of process.
"exemptions shall apply only where the association, corporation or institution claiming the exemption owns the property in question and is incorporated or organized under the laws of this State and authorized to carry out the purposes on account of which the exemption is claimed."
"All buildings and structures located in this State and used exclusively by a nonprofit association or corporation organized under the laws of this or another State for the production and broadcasting of educational television; the land whereon the buildings and structures are erected and which may be necessary for the fair enjoyment thereof, and which is devoted to the foregoing purpose, and no other purpose, and does not exceed 30 acres in extent; the furniture, equipment and personal property in said buildings and structures if used and devoted to the foregoing purpose."
The amendment applies only "to taxes payable in 1968 and thereafter."
Because it concluded that the appellant was not entitled to an exemption in any event, the New Jersey Supreme Court noted that it did not have to decide whether the failure of the appellant to comply with the normal procedure for claiming an exemption under N.J.Stat.Ann. § 54:4-4.4 should preclude it from asserting an exempt status.

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