Source: https://supreme.justia.com/cases/federal/us/319/441/
Timestamp: 2019-04-22 08:44:44+00:00

Document:
1. The United States owned the fertilizer which it shipped into Florida for distribution pursuant to the Soil Conservation and Domestic Allotment Act, and in respect of such distribution was acting in a governmental capacity. P. 319 U. S. 444.
2. A State is without Constitutional power to exact an inspection fee -- although the design of the inspection service was to protect consumer from fraud -- in respect of fertilizer which the United States owns and is distributing within the State pursuant to provisions of the Soil Conservation and Domestic Allotment Act. Const., Art. VI. P. 319 U. S. 447.
3. The instrumentalities and property of the United States used by it in governmental activities are immune from state taxation or regulation unless Congress affirmatively provides otherwise. P. 319 U. S. 448.
Appeal from a decree of a District Court of three judges enjoining state officers from enforcing against the United States the provisions of the Florida Commercial Fertilizer Law.
This record presents for review the action of a specially constituted district court in enjoining, on final hearing, the Commissioner of Agriculture of the Florida and his agents from enforcing against the United States the provisions of the Florida Commercial Fertilizer Law. Judicial Code, §§ 266 and 238.
By this Florida act, the sale or distribution of commercial fertilizer is comprehensively regulated. There is included a requirement of a label or stamp on each bag evidencing the payment of an inspection fee. Unless so identified, the bags may be seized and sold by the sheriff of the county. The purpose of the legislation is to assure the consumers that they will obtain the quality of fertilizer for which they pay and that substances deleterious to the land will be excluded from the material sold. Florida Statutes, 1941, c. 576, F.S.A. § 576.01 et seq.
the use of fertilizers with a high content of superphosphate on winter legumes, the plan sought, by plowing under the legumes, to obtain scarce nitrogen for the commercial crops which were to follow. To secure a heavy growth of the legumes before plowing time, the fertilizer should be applied and the legumes planted prior to October 15th. Farmers who desire to participate in the conservation program follow the required practices under the supervision of county committees or associations which are federal instrumentalities for carrying out the plans. Section 8(b).
The soil-building and soil-conserving practices, when carried out by a participating farmer, entitle him to a grant or benefit payment. Section 8. In order that the farmer may earn this grant, phosphate fertilizers are furnished to him in advance by the Government through the county committee. The cost is deducted from the grant. For the purpose of carrying out the program, the United States caused fertilizers purchased by its agents to be shipped into Florida to the local agricultural associations for such distribution. As the sacks were without stamps, the Florida Commissioner of Agriculture, on September 10, 1942, gave a "stop sale" notice to the county agricultural association to cease distribution.
which have now been reduced by the specification of errors and the brief to the fundamental one that the United States, as to fertilizer to be used upon Florida soil, is not exempt by Constitution or statute from compliance with reasonable state regulation or the payment of reasonable inspection fees. At any rate, it is urged, inspection fees may be collected under the facts heretofore stated as the Government is merely a conduit or service agent for the fertilizer manufacturer or the Florida farmer.
distribution other than that the United States was the owner of the fertilizer in Florida awaiting distribution.
The other findings are substantially in accord with the allegations of the complaint, and are not contested. The District Court, one judge dissenting, enjoined the application of Florida law to the above described acts of the United States on the ground of federal immunity from state regulation.
Since the United States is a government of delegated powers, none of which may be exercised throughout the Nation by any one state, it is necessary for uniformity that the laws of the United States be dominant over those of any state. Such dominancy is required also to avoid a breakdown of administration through possible conflicts arising from inconsistent requirements. The supremacy clause of the Constitution states this essential principle. Article VI. A corollary to this principle is that the activities of the Federal Government are free from regulation by any state. [Footnote 5] No other adjustment of competing enactments or legal principles is possible.
be paid on fertilizers distributed by the United States, where the federal law is silent as to any exemption on the ground of sovereignty. Reliance is placed upon Graves v. New York ex rel. O'Keefe, 306 U. S. 466.
"tangible or certain economic burden is imposed on the [United States] as would justify a court's declaring that the [employee] is clothed with the implied constitutional tax immunity of the government by which he is employed."
306 U.S. at 306 U. S. 486.
legislation and the particular exaction. Shaw v. Gibson-Zahniser Oil Corp., 276 U. S. 575, 276 U. S. 578. But where, as here, the governmental action is carried on by the United States itself and Congress does not affirmatively declare its instrumentalities or property subject to regulation or taxation, the inherent freedom continues.
49 Stat. 163, 1148; 50 Stat. 329; 55 Stat. 257, 860; 56 Stat. 664.
Sections 7 and 8 of the Soil Conservation and Domestic Allotment Act, as amended.
Graves v. New York ex rel. O'Keefe, 306 U. S. 466, 306 U. S. 477; Pittman v. Home Owners' Corp., 308 U. S. 21, 308 U. S. 32; Federal Land Bank v. Bismarck Co., 314 U. S. 95, 314 U. S. 102.
Establishment of the Department of Agriculture, 12 Stat. 387; of colleges of agriculture, 26 Stat. 417; Federal Farm Loan Act, 39 Stat. 360 40 Stat. 431; Federal Intermediate Credit Banks, 42 Stat. 1454; Federal Farm Board, 46 Stat. 11; boll weevil grant, 45 Stat. 539, 565.
McCulloch v. Maryland, 4 Wheat. 316, 17 U. S. 427; Ohio v. Thomas, 173 U. S. 276, 173 U. S. 283; Owensboro National Bank v. Owensboro, 173 U. S. 664, 173 U. S. 667; Johnson v. Maryland, 254 U. S. 51; Arizona v. California, 283 U. S. 423, 283 U. S. 451.
Owensboro National Bank v. Owensboro, 173 U. S. 664, 173 U. S. 667; Baltimore National Bank v. Tax Comm'n, 297 U. S. 209; Pacific Coast Dairy, Inc. v. Dept. of Agriculture, 318 U. S. 285.
Pittman v. Home Owners' Corp., 308 U. S. 21, and cases cited.
Standard Dredging Corp. v. Murphy, ante, p. 319 U. S. 306; California v. Thompson, 313 U. S. 109.
Alabama v. King & Boozer, 314 U. S. 1, 314 U. S. 9, and cases cited.
Dobbins v. Commissioners, 16 Pet. 435; Collector v. Day, 11 Wall. 113; New York ex rel. Rogers v. Graves, 299 U. S. 401; Brush v. Commissioner, 300 U. S. 352.
Similar conclusions have been reached in adjacent fields. The state is powerless to punish its citizens for acts done in exclusively federal territory. Pacific Coast Dairy, Inc. v. Dept. of Agriculture, 318 U. S. 285. A state cannot tax land of the United States situated within the state, even though the state has not ceded sovereignty to the United States. Van Brocklin v. Tennessee, 117 U. S. 151, 117 U. S. 177.

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