Source: https://supreme.justia.com/cases/federal/us/198/299/
Timestamp: 2019-04-21 08:50:51+00:00

Document:
The general rule that tangible personal property is subject to taxation by the state in which it is, no matter where the domicil of the owner may be, is not affected by the fact that the property is employed in interstate transportational on either land or water.
Vessels registered or enrolled are not exempt from ordinary rules respecting taxation of personal property. The artificial status created as the home port of a vessel, under § 4141, Rev.Stat., only controls the place of taxation in the absence of an actual situs elsewhere.
Vessels, though engaged in interstate commerce, employed in such commerce wholly within the limits of a state are subject to taxation in that state although they may have been registered or enrolled at a port outside its limits.
issued bills of lading and tickets to points outside the State of Virginia; that, owing to the shallow waters where these vessels plied, it was impossible in most instances for the larger oceangoing steamers of the company to be used; that, in consequence, the vessels above enumerated were used to receive the freight and passengers as aforesaid, giving the shipper of freight a bill of lading for the same, destined to New York and other points outside of Virginia, and the passenger a ticket to his destination, and thus transported such freight and passengers to deeper water at Norfolk and Old Point Comfort, where, upon such bills of lading and tickets, the passengers and freight were transferred to one of the larger ocean-going vessels of the steamship company, and so the ultimate destination, namely, New York and elsewhere outside of Virginia, was reached; that any other business transacted by the above-named vessels was incidental in character and comparatively insignificant in amount; that the said vessels were built and designed for interstate traffic especially, and were adjuncts to or branches of the main line of the Old Dominion Steamship Company between New York and Norfolk; that each and all of the said vessels were regularly enrolled, under the United States laws, outside of the State of Virginia, with the name and port of such enrollment painted on the stern of each of them; that the said vessels, though regularly enrolled and licensed for coastwise trade, were then used on old established routes upon navigable waters within Virginia, as follows, to-wit:"
"First. The steamer Hampton Roads between Fort Monroe and Hampton and Norfolk."
"Second. The steamer Mobjack between points in Mathews and Gloucester Counties and Norfolk."
"Third. The steamers Luray and Accomac between Smithfield and Norfolk."
"Fourth. The steamer Virginia Dare between Suffolk and Norfolk."
"Fifth. The steamers Berkeley and Brandon between Richmond and Norfolk; and "
licenses for the year 1903-1904 to sell liquor at retail on each of these steamers on their route between the cities of Richmond and Norfolk, and likewise, on or about the same time, complied with the revenue laws of the United States in the matter of selling liquor at retail on each of the said steamers on said route."
"Sixth. The steam tug Germania, which was used in the harbor of Norfolk and Hampton Roads for the purpose of docking the large ocean-going steamers of the Old Dominion Steamship Company, and the transferring from different points in those waters freight from connecting lines destined to points outside of Virginia."
"And the court, having maturely considered said transcript of the record of the finding aforesaid and the arguments of counsel, is of opinion that the legal situs of the vessels and barges assessed for taxation by the finding of the State Corporation Commission is, for that purpose, within the jurisdiction of the State of Virginia, and that said property is amenable to the tax imposed thereon, notwithstanding the fact that said vessels and barges are owned by a nonresident corporation, that they may have been enrolled under the act of Congress at some port outside the State of Virginia, and that they are engaged, in part, in interstate commerce, and doth so decide and declare. Therefore it seems to the court here that the finding of the State Corporation Commission appealed from is without error, and said finding is approved and affirmed. It is further considered by the court that the appellee recover against the appellant thirty dollars damages and its costs by it about its defense expended upon this appeal. "
"It is equally well settled that there is nothing in the Constitution or laws of the United States which prevents a state from taxing personal property employed in interstate or foreign commerce like other personal property within its jurisdiction."
See also Cleveland &c. Railway Co. v. Backus, 154 U. S. 439. 154 U. S. 445; Western Union Telegraph Co. v. Taggart, 163 U. S. 1, 163 U. S. 14.
"Freedom from such impositions does not, of course, imply exemption from reasonable charges, as compensation for the carriage of persons, in the way of tolls or fares, or from the ordinary taxation to which other property is subjected, any more than like freedom of transportation on land implies such exemption."
"A state cannot regulate foreign commerce, but it may do many things which more or less affect it. It may tax a ship or other vessel used in commerce, the same as other property owned by its citizens."
"SEC. 4141. Every vessel, except as is hereinafter provided, shall be registered by the collector of that collection district which includes the port to which such vessel shall belong at the time of her registry; which port shall be deemed to be that at or nearest to which the owner, if there be but one, or, if more than one, the husband or acting and managing owner of such vessel, usually resides."
"The object of the registry acts is to encourage our own trade, navigation, and shipbuilding, by granting peculiar or exclusive privileges of trade to the flag of the United States and by prohibiting the communication of those immunities to the shipping and mariners of other countries. These provisions are well calculated to prevent the commission of fraud upon individuals, as well as to advance the national policy. The registry of all vessels at the custom house, and the memorandums of the transfers, add great security to title, and bring the existing state of our navigation and marine under the view of the general government. By these regulations, the title can be effectually traced back to its origin."
This object does not require, and there is no suggestion in the statutes, that vessels registered or enrolled are exempt from the ordinary rules respecting taxation of personal property. It is true, by section 4141, there is created what may be called the home port of the vessel, an artificial situs, which may control the place of taxation in the absence of an actual situs elsewhere, and to that extent only do the two cases referred to go.
"We are satisfied that the State of California had no jurisdiction over these vessels for the purpose of taxation; they were not properly abiding within its limits so as to become incorporated with the other personal property of the state; they were there but temporarily, engaged in lawful trade and commerce, with their situs at the home port, where the vessels belonged, and where the owners were liable to be taxed for the capital invested, and where the taxes had been paid."
"The fact that the vessel was physically within the limits of the City of Mobile at the time the tax was levied does not decide the question. Thus, if a traveler on that day had been passing through that city in his private carriage, or an emigrant with his worldly goods on a wagon, it is not contended that the property of either of these persons would be subject to taxation, as property within the city. It is conceded by the respective counsel that it would not have been."
or a post coach engaged in a local business within a state may be subject to local taxation although it carry the mail of the United States. The commerce between the states may not be interfered with by taxation or other interruption, but its instruments and vehicles may be. . . . It is the opinion of the Court that the State of Alabama had no jurisdiction over this vessel for the purpose of taxation, for the reason that it had not become incorporated into the personal property of that state, but was there temporarily only."
In other words, here, as in the prior case, there was no actual situs of the vessel. She had not become commingled with the general property of the state, and was therefore subject to taxation at the artificial situs -- the port of her registry.
"From which it follows as a necessary consequence that the enrollment of a ship or vessel does not exempt the owner of the same from taxation for his interest in the ship or vessel as property, upon a valuation of the same, as in the case of other personal property."
Of course, if the enrollment does not exempt vessels from taxation as other personal property, the place of enrollment, whether within or without the state in which the property is actually situated, is immaterial, for other like property is taxable at its actual situs.
So far as the state authorities are concerned, reference may be made to Lott v. Mobile Trade Company, 43 Ala. 578; National Dredging Company v. State, 99 Ala. 462; Northwestern Lumber Co. v. Chehalis County, 25 Wash. 95.

References: § 4141
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