Source: https://supreme.justia.com/cases/federal/us/297/626/
Timestamp: 2019-04-21 09:00:19+00:00

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Justia › US Law › US Case Law › US Supreme Court › Volume 297 › Bingaman v. Golden Eagle Western Lines, Inc.
1. Upon the question whether a state gasoline tax is exacted as compensation for use of the highways or is a general excise on the use of gasoline, the construction by the state supreme court controls in a federal court. P. 297 U. S. 628.
2. Statutory provisions carried forward without material change into a new statute are continuations, and not new enactments. Posadas v. National City Bank, 296 U. S. 497. P. 297 U. S. 628.
3. As respects a carrier by motor vehicle engaged exclusively in interstate commerce, a State has no power to license and tax the importation and use of gasoline for operating the motors. P. 297 U. S. 629.
Appeal from a decree of the three-judge District Court which enjoined appellants, state officers, from enforcing certain gasoline taxes and attendant penalties.
business in the future. The busses are propelled by gasoline, which, so far as this case is concerned, is purchased in another state, placed in tanks attached to the busses, and transported and used exclusively in interstate commerce.
A statute of the state (Chapter 176, § 2, Session Laws of 1933) imposes "an excise tax of five cents (5¢) per gallon upon the sale and use of all gasoline and motor fuel." Section 3 of the act prohibits any "distributor" from importing, receiving, using, selling, or distributing any motor fuel unless such distributor is the holder of an uncancelled annual license issued by the state comptroller. For the license, a fee is exacted of $25 for each distribution station or place of business or agency. A "distributor," as defined by § 1 of the act, includes a corporation consuming and using in the state any motor fuel purchased in and brought from another state. For failure to comply with the statute, penalties are incurred. The effect of the statute is to compel a common carrier engaged exclusively in interstate transportation to procure a license as a "distributor" and pay an excise tax upon the use of motor fuel purchased in, and brought from, another state and used only in such transportation.
By an act, passed in 1931, Laws 1931, c. 31, provision is made for refunding taxes collected upon the purchase of gasoline in certain specified quantities and used for other purposes than the operation of motor vehicles upon the streets and highways of the state.
of three judges as the federal law requires, and a decree entered in accordance with the prayer of the bill. Golden Eagle Western Lines, Inc. v. Bingaman, 14 F.Supp. 17.
The case turns upon the question whether the pertinent statutory provisions exact a charge as compensation to the state for the use of its highways or impose an excise tax for the use of an instrumentality of interstate commerce. If the former, the tax should be sustained; if the latter, it clearly contravenes the commerce clause, and must be held bad. Helson and Randolph v. Kentucky, 279 U. S. 245, and cases cited. The state supreme court has construed the provisions in Geo. E. Breece Lumber Co. v. Mirabal, 34 N.M. 643, 287 P. 699, and Transcontinental & Western Air, Inc. v. Lujan, 36 N.M. 64, 8 P.2d 103, and the court below, rightly concluding that it was bound by this construction, * thought that it settled the matter against the validity of the tax. With this view, we agree.
court drew a sharp distinction between the excise tax on the sale and that on the use of gasoline, holding the first to be valid and the second to be repugnant to the commerce clause of the federal Constitution as applied to an interstate air carrier. Both cases definitely refused to accept the view that the tax was a charge for the use of the highways.
Appellants contend that the refund provisions of the later 1931 statute, supra, nevertheless demonstrate that the state legislature intended that the excise tax now in question should constitute compensation for the use of the highways. But the so-called refund provisions apply only in the case of taxes collected upon the purchase of gasoline, not of taxes collected for its use. Moreover, the state court in the Lujan case, p. 74, considered a like contention and rejected it as without substance.
As applied to appellee, an interstate carrier doing no intrastate business of any description, § 3 of the act, which exacts license fees from distributors, is plainly invalid as imposing a direct burden upon interstate commerce. Crutcher v. Kentucky, 141 U. S. 47, 141 U. S. 58-59; International Textbook Co. v. Pigg, 217 U. S. 91, 217 U. S. 108-113.
* United States v. Kombst, 286 U. S. 424, 286 U. S. 426; Frost & Frost Trucking Co. v. Railroad Comm'n, 271 U. S. 583, 271 U. S. 591-592.

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