What follows is an opinion from the Supreme Court of the United States. Your task is to determine the bases on which the Supreme Court rested its decision with regard to the legal provision that the Court considered in the case. Consider "judicial review (national level)" if the majority determined the constitutionality of some action taken by some unit or official of the federal government, including an interstate compact. Consider "judicial review (state level)" if the majority determined the constitutionality of some action taken by some unit or official of a state or local government. Consider "statutory construction" for cases where the majority interpret a federal statute, treaty, or court rule; if the Court interprets a federal statute governing the powers or jurisdiction of a federal court; if the Court construes a state law as incompatible with a federal law; or if an administrative official interprets a federal statute. Do not consider "statutory construction" where an administrative agency or official acts "pursuant to" a statute, unless the Court interprets the statute to determine if administrative action is proper. Consider "interpretation of administrative regulation or rule, or executive order" if the majority treats federal administrative action in arriving at its decision.Consider "diversity jurisdiction" if the majority said in approximately so many words that under its diversity jurisdiction it is interpreting state law. Consider "federal common law" if the majority indicate that it used a judge-made "doctrine" or "rule; if the Court without more merely specifies the disposition the Court has made of the case and cites one or more of its own previously decided cases unless the citation is qualified by the word "see."; if the case concerns admiralty or maritime law, or some other aspect of the law of nations other than a treaty; if the case concerns the retroactive application of a constitutional provision or a previous decision of the Court; if the case concerns an exclusionary rule, the harmless error rule (though not the statute), the abstention doctrine, comity, res judicata, or collateral estoppel; or if the case concerns a "rule" or "doctrine" that is not specified as related to or connected with a constitutional or statutory provision. Consider "Supreme Court supervision of lower federal or state courts or original jurisdiction" otherwise (i.e., the residual code); for issues pertaining to non-statutorily based Judicial Power topics; for cases arising under the Court's original jurisdiction; in cases in which the Court denied or dismissed the petition for review or where the decision of a lower court is affirmed by a tie vote; or in workers' compensation litigation involving statutory interpretation and, in addition, a discussion of jury determination and/or the sufficiency of the evidence.

Opinion:
UNITED STATES v. TOWNSHIP OF MUSKEGON et al.
No. 37.
Argued November 14, 1957.
Decided March 3, 1958
Roger Fisher argued the cause and was on a reply brief for the United States, appellant in No. 37. Also on a brief were Solicitor General Rankin, Acting Assistant Attorney General Stull, A. F. Prescott and H. Eugene Heine, Jr. for the United States, and Victor W. Klein, who submitted on the brief for the Continental Motors Corporation, appellant in No. 38.
Harold M. Street argued the causes for appellees. On the brief were Charles A. Lamard for the Township of Muskegon, Michigan, Robert A. Cavanaugh and William P. Spaniola for the County of Muskegon, Michigan, and Mr. Street for the Orchard View School District, appellees.
Keith L. Seegmiller filed a brief for the National Association of County Officials, as amicus curiae.
Together with No. 38, Continental Motors Cory. v. Township of Muskegon et al., also on appeal from the same Court.
Mr. Justice Black
delivered the opinion of the Court.
As the Government points out in its jurisdictional statement “this appeal presents precisely the same basic question” as is raised in No. 26, United States v. City of Detroit, ante, p. 466, also decided today. That question is whether Public Act 189, of 1953, of the State of Michigan is unconstitutional as applied to a corporation using government property in connection with a business conducted for its own private gain.
In this case the United States owns a manufacturing plant at Muskegon, Michigan. In 1952 it granted Continental Motors Corporation the right to use this plant in the course of performing several supply contracts Continental had with the Government. No rent was charged as such but. Continental agreed not to include any part of the cost of the facilities furnished by the Government in the price of the goods supplied under the contracts.
On January 1, 1954, Continental was assessed a tax under Public Act 189. As in No. 26, this tax was levied because of Continental’s use of tax-exempt property in its private business and was measured by the value of the exempt property which it was then using. Continental refused to pay the tax and this suit was brought by state authorities in a state court to recover the amount assessed. The United States intervened, contending that the tax was invalid because it imposed a levy on government property. But the lower court rejected this contention and entered judgment for the plaintiffs. The Michigan Supreme Court affirmed, 346 Mich. 218, 77 N. W. 2d 799. We noted probable jurisdiction of an appeal from this decision by both Continental and the United States, 352 U. S. 963, and now affirm the judgment below on the basis of our decision in No. 26.
There are only two factual differences between this case and No. 26. First, Continental is not using the property under a formal lease but under a “permit”; second, Continental is using the property in the performance of its contracts with the Government. We do not believe that either fact compels a different result.
Constitutional immunity from state taxation does not rest on such insubstantial formalities as whether the party using government property is formally designated a “lessee.” Otherwise immunity could be conferred by a simple stroke of the draftsman’s pen. The vital thing under the Michigan statute, and we think permissibly so, is that Continental was using the property in connection with its own commercial activities. The case might well be different if the Government had reserved such control over the activities and financial gain of Continental that it could properly be called a “servant” of the United States in agency terms. But here Continental was not so assimilated by the Government as to become one of its constituent parts. It was free within broad limits to use the property as it thought advantageous and convenient in performing its contracts and maximizing its profits from them.
If under certain conditions the State can tax Continental for use of government property in connection with its business conducted for profit — and as set forth in No. 26 we are of the opinion that it can — the fact that Continental was carrying out a contract with the Government does not materially alter the case. Continental was still acting as a private enterprise selling goods to the United States. In a certain loose way it might be called an “instrumentality” of the United States, but no more so than any other private party supplying goods for his own gain to the Government. In a number of eases this Court has upheld state taxes on the activities of contractors performing services for the United States even though they were closely supervised in performing these functions by the Government. See, e. g., James v. Dravo Contracting Co., 302 U. S. 134; Alabama v. King & Boozer, 314 U. S. 1; Curry v. United States, 314 U. S. 14; Wilson v. Cook, 327 U. S. 474.
The Curry case seems squarely in point. There a contractor acting pursuant to a cost-plus contract with the United States purchased certain materials. These materials were shipped to a government construction project where they were used by the contractor in the performance of the contract. By agreement title to the materials passed to the Government as soon as they were shipped by the vendor. The State imposed a tax on the contractor, based on the value of the materials, for using them after they had been delivered to the work site. This Court unanimously upheld that state use tax, although it clearly amounted to a tax on the use of government property in performing a government contract.
Affirmed.
[For opinion of Mr. Justice Frankfurter, see post, p. 495.]
[For opinion of Mr. Justice Harlan, see post, p. 505.]

Question: What is the basis of the Supreme Court's decision?

Choices:
judicial review (national level)
judicial review (state level)
Supreme Court supervision of lower federal or state courts or original jurisdiction
statutory construction
interpretation of administrative regulation or rule, or executive order
diversity jurisdiction
federal common law

Answer: 1