Document: 460 U.S. 575 103 S.Ct. 1365 75 L.Ed.2d 295 MINNEAPOLIS STAR AND TRIBUNE COMPANY, Appellantv.MINNESOTA COMMISSIONER OF REVENUE. No. 81-1839. Argued Jan. 12, 1983. Decided March 29, Syllabus While exempting periodic publications from its general sales and use tax, Minnesota imposes a "use tax" on the cost of paper ink products consumed in production such publication, but exempts first $100,000 worth any calendar year. Appellant newspaper publisher brought an action seeking refund taxes it had paid during certain years, contending that tax violates, inter alia, guarantee freedom press First Amendment. The Supreme Court upheld tax. Held: question violates Pp. 579-593. (a) There is no legislative history, indication, apart structure itself, impermissible or censorial motive part Legislature enacting Grosjean v. American Press Co., 297 233, 56 444, 80 L.Ed. 660 distinguished. 579-580. (b) But by creating special which without parallel State's scheme, has singled out for treatment. When State so singles press, political constraints prevent legislature imposing crippling applicability are weakened, threat burdensome becomes acute. That can operate as effectively censor to check critical comment thus undercutting basic assumption our system will often serve important restraint government. Moreover, differential treatment, unless justified some characteristic suggests goal regulation not unrelated suppression expression, presumptively unconstitutional. Differential treatment then, places burden interests protected Amendment cannot be countenanced asserts counterbalancing interest compelling importance achieve taxation. 581-585. (c) offered adequate justification newspapers. Its raising revenue, standing alone, justify alternative means taxing businesses generally clearly available. And explanation why chose substitute rather than itself. A rule would automatically allow single different method taxation long effective other taxpayers or, here, lighter businesses, avoided. possibility error inherent poses too great concerns at heart 586-590. (d) Minnesota's only because also targets small group effect exemption handful publishers pay all, even fewer significant amount To recognize power tailor few members presents potential abuse suggested scheme. 591-592. 314 N.W.2d 201 (Minn.1981), reversed. Lawrence C. Brown, Minneapolis, Minn., appellant. Paul R. Kempainen, St. Paul, appellee. Justice O'CONNOR delivered opinion Court.* 1 This case impose and, exemptions, limit 2 * Since 1967, imposed most goods price excess nominal sum.1 Act June 1, ch. 32, art. XIII, § 2, 1967 Minn.Laws Sp.Sess. 2143, 2179, codified Minn.Stat. 297A.02 (1982). In general, applies retail sales. Ibid. An industrial agricultural users shields components used themselves sold retail. 297A.25(1)(h). As this support see Minn.Code Agency Rules, Tax & U 300 (1979), enacted "privilege using, storing consuming tangible personal property." nonexempt property was price. 297A.14 Like classic protects eliminating residents' incentive travel States with lower buy buying them Minnesota. §§ 297A.14, 297A.24. 3 appellant, Minneapolis Star Tribune Company "Star Tribune", morning evening Minneapolis. From until 1971, enjoyed provided publications. 2187, 297A.25(1)(i). however, while leaving place, amended scheme publication. October 31, I, 5, 1971 2561, 2565, modifications 297A.25(1)(i) Ink became items subject were 1974, again statute, time exempt publication year, giving each annual credit $4,000. May 24, 1973, 650, 1973 1606, 1637, (1982).2 Publications remained 1639. 4 After enactment exemption, 11 publishers, producing 14 388 circulation newspapers State, incurred liability 1974. one 11, $893,355 collected, $608,634, roughly two-thirds total revenue raised See 201, 203 n. (1981). 1975, 13 16 374 papers, bore receipts paper. Id., 204 5. 5 instituted seek January 1974 1975. It challenged imposition violation guarantees equal protection Fourteenth Amendments. against federal constitutional challenge. We noted probable jurisdiction, --- ---, 102 2955, 73 1347 (1982), we now reverse. II 6 argues must strike authority Inc., (1936). Although there similarities between two cases, agree controlling. 7 Grosjean, Louisiana license 2% gross sale advertising all weekly above 20,000. Out least 124 noting "single kind" keying curtailed flow information, id., 250-251, S.Ct., 449, held invalid abridgment press. Both brief argument emphasized events leading up contemporary climate Louisiana. Arg. Appellees, U.S., 238, 445; Brief O.T. 1936, 303, pp. 8-9, 30. All large papers "ganged up" Senator Huey Long, circular distributed Long governor member state described "lying newspapers" conducting "a vicious campaign" lying, 2c [sic ] lie." 9. Court's did describe stated, "[The tax] bad because, light history present setting, seen deliberate calculated device guise information," 250, motivation may have been significant. 8 Our subsequent cases consistent their reading point. Compare United O'Brien, 391 367, 384-385, 88 1673, 1683, 20 672 (1968) (stating purpose irrelevant ) Houchins KQED, 438 9-10, 98 2588, 2594, 57 553 (1978) (plurality opinion) (suggesting relevant ); Pittsburgh Co. Commission Human Relations, 413 376, 383, 93 2553, 2557, 37 669 (1973) (same). Commentators viewed dependent improper goals legislature. T. Emerson, System Freedom Expression 419 (1970); L. Tribe, Constitutional Law 592 8, 724 10 (1978). think result attributable perception intent penalize selected currently before us, history3 resolve simple citation Grosjean. Instead, analyze problem anew under principles III 9 Clearly, does prohibit beyond dispute Federal Government applicable economic regulations problems. See, e.g., Citizens Publishing States, 394 131, 139, 89 927, 931, 22 148 (1969) (antitrust laws); Lorain Journal 342 143, 155-156, 72 181, 187, 96 162 (1951) (same); Breard Alexandria, 341 622, 71 921, 95 1233 (prohibition door-to-door solicitation); Oklahoma Walling, 327 186, 192-193, 66 494, 497-98, 90 614 (1946) (Fair Labor Standards Act); Mabee White Plains 178, 511, 607 Associated 326 6-7, 19-20, 65 1416, 1418, 1424, 2013 (1945) NLRB, 301 103, 132-133, 656, 81 953 (1937) (NLRA); Branzburg Hayes, 408 665, 92 2646, 33 626 (1972) (enforcement subpoenas). Minnesota, chosen apply created taxation, provision, quoted note supra, facially discriminatory, singling is, knowledge, unique law. differs enterprises respects:4 function protecting intermediate transaction ultimate sale. ordinarily serves complement make major purchases taxes; requires resident who shops out-of-state savings. E.g., National Geographic Society California Board Equalization, 430 551, 555, 97 1386, 1389, 51 631 (1977); P. Hartman, Limitations Local Taxation 10:1, 10:5 (1981); Warren Schlesinger, Sales Use Taxes: Interstate Commerce Pays Way, 38 Colum.L.Rev. 49, 63 (1938). designed overall function. state, "The 'use tax' compensatory complementary tax." (1979); 297A.24 Thus, for, event "complementary function" serve. DeLuxe Check Printers, Inc. Commissioner Tax, Minn. 76, 341, 343 (1972). function; uses, whether taxpayer purchased in-state, Further, ordinary discussed above, ultimate, retail, like statutory devise unitary transactions when finished product user." Standard Packaging Corp. Revenue, 288 234 (Minn.1979). Publishers, taxed purchase components, though they eventually sell 12 By which, then determine permits burdens rights stand necessary overriding governmental interest. Lee, 455 252, 1051, 127 Any pay, course, "burden." But, observed, p. 581, approving regulation, 194, 498; 184, 514; 655-56,5 suggesting might place heavier conclude problems do indeed burden. substantial evidence troubled Framers Amendment.6 role mobilizing sentiment favor independence Revolution. Constitution proposed explicit Antifederalists objected. Proponents Constitution, relying principle enumerated powers, responded unnecessary granted Congress control remarks Richard Henry Lee typical rejoinders Antifederalists: "I confess I what congress can, pretence right, law suppress press; am clear, restrained laying duties whatever printing, particularly heavy pieces printed." Observation Leading Fair Examination Government, Letter IV, reprinted B. Schwartz, Bill Rights: Documentary History 466, 474 (1971). 15 Review Proposed Late Convention Republican, H. Storing, Complete Anti-Federalist 65, 81-82 M. Smith, Address People New York Necessity Amendments 566, 575-576; cf. Federalist 84, 440 (A. Hamilton) (M. Beloff ed. 1948) (recognizing attempting refute argument). voiced led adoption Rights. 527. fears well-founded. differentially, opposed generally, gives government powerful weapon selected. little cause concern. need fear destroy if same rest constituency. Railway Express York, 336 106, 112-113, 69 463, 467, 533 (1949) (Jackson, J., concurring). though, passing Stewart, "Or Press," 26 Hastings L.J. 631, 634 (1975). "[A]n untrammeled [is] vital source public informed essence working democracy. 17 Police Department City Chicago Mosley, 92, 95-96, 2286, 2289-90, 212 (1972); Brown Hartlage, 456 45, 1523, 732 (1982) (First "fullest urgent" application content speech). countenance taxation.7 IV 18 main asserted revenue. Of course Standing achieving available: could raise generally,8 avoiding implicit 19 Addressing concern invites us look form substance. according merely applied press.9 fatal flaws reasoning. First, court below speculated concerned collection impractical. N.W.2d, 207. suggestion unpersuasive, low-priced exempt, supra.10 If real duplicate difficult obvious expedient applying assuming valid reasons substituting another persuaded substitute. actually favors over rate applied, but, hesitant fashion allowed businesses. One reason reluctance very selection threatens current differentially more extra able effects, "[t]he sanctions deter [the] exercise [First Amendment] almost potently actual sanctions." NAACP Button, 371 415, 433, 83 328, 338, 405 (1963).11 21 second avoid courts institutions poorly equipped evaluate precision relative various methods taxation.12 complexities factual proof always error, familiarity process evaluating taxes. sum, Amendment, tolerate possibility.13 therefore, newspapers.14 V tax.15 explains policy favoring "equitable" system, although comparable exemptions outside Again, supporting view amendment. Whatever case, recognizing desire system. explains, promotes equity social costs smaller likely bear Even willing accept premise profitable therefore better commitment "equity" questionable, grant benefits general.16 selects narrowly defined full begins resemble penalty largest attempt struggling enterprises. VI 23 impugn motives Illicit sine qua non 439, 341; Alabama, 357 461, 78 1163, 1171, 1488 (1958); Lovell Griffin, 303 451, 58 666, 668-69, 82 949 recognized aimed proper restrict unduly Schneider 308 147, 60 146, 84 155 (1939). individual within action. satisfactory paper, Amendment,17 judgment 24 Reversed. 25 WHITE, concurring dissenting part. difficult. limits papers. feature alone sufficient invalidate reverse Court. recognizes reason, subscribe Part concur judgment. 27 Having found fully grounds decision, go further. targeted left day. 28 Court, undertakes task today. crux issue lieu concludes selecting Ante, 587. so, end matter, reason. 29 nevertheless moves opine "the businesses." 588. threatened sanction purpose. REHNQUIST demonstrates, post, 601-602, proposition sake argument, let pass. 30 Despite having struck down three separate reasons, still finished. "A reason" eschew inquiry into presented. submits "courts taxation," ante, 589, except, seems, involving sovereign immunity States. Why made incompetent decline case. 31 acknowledges those whom business, compared 12. County Fresno, 429 452, 699, 50 683 Detroit, 355 474, 424 (1958). apparent me incidence discriminatory upon government, rationale these set "force us" assume duty perform wholly unsatisfactory. convinced incapacity analysis, taken path today simply prohibited states "equivalent" deal done so. 32 frequently examined—without complaint determining interstate commerce run afoul Due Process Clause.1 number concerning railroad taxes, example, considered decide equivalent commerce.2 competing sister in-state former constituted discrimination commerce. Henneford Silas Mason 577, 524, 814 (1937).3 measured considering formulas proportion business violate due process. e.g. Moorman Mfg. Bair, 437 267, 2340, 197 (1978); Hans Rees' Sons, North Carolina, 283 123, 385, 879 (1931). professed inability novel concept, belied lessons experience. recognize, where confidently ascertain greater circumstances, unwilling entrust uncertain proof. shows, 1378-1379, plainly evident disadvantaged certainly benefitted vis-a-vis forbids choosing another. 34 REHNQUIST, dissenting. 35 Today learn runs proscription laws "abridging speech, press" structures advantage seems much akin something overzealously smothered. purports rely "Framers Amendment," believe safe 1791 "abridge" meant thing today: diminish curtail. Not decision nearly centuries after read activities way curtail freedoms protects. 36 per se regulating numerous relied repeat settled. 581. further sanctioned line cases. 586-587, Therefore, extent holds attack classifications 583. point company my colleagues. several parts 4% retailers. 586-590 nn. 9, 13. Rather decided provide paper; thus, both "system taxes," (1981), classified differently system.* finds difference results record reveals average daily 489,345 copies. 203-204, Using 25¢ copy, Tr. Oral 46, year $38,168,910. Sunday 640,756; $8,329,828. revenues $46,498,738. Had imposed, liable $1,859,950 "complexities proof" analyzed Daily 481,789; $37,579,542. 1975 619,154; $8,049,002. Total $45,628,544; rate, $1,825,142. agrees permissible, Tribune's $3,685,092. 39 indicates $608,634 $636,113 1975—a $1,244,747. N.W., expert testimony modern day Euclids Einsteins $1,224,747 significantly less $3,685,092 levied fortiori, "differential treatment" benefited, burdened, "freedom [and] press." 40 Ignoring calculations, statutes "presumptively unconstitutional" declared "unless taxation." 585. standard conjured unprecedented unwarranted. knowledge never subjected stringent review solely basis particular groups. (1972), proposition. Mosley picketing except "peaceful picketing" area. key decision; essential fact person picketer" his speech through expression totally abridged 41 governmentally "rational basis." Williamson Optical 348 483, 99 563 (1955); Agency, (1949). rational legislature, arms presumption rationality. shown greatest deference legislatures devising schemes. said Allied Stores Ohio, Bowers: 42 wide discretion dealing domestic concerns, trenching prerogatives violating guaranties attribute powers fiscal systems ensure foster local interests. . specific trades professions vary excise products. required resort close distinctions maintain precise, scientific uniformity reference composition, value. [Citations omitted]. 'To hold otherwise intolerable supervision, hostile .' " 358 522, 526-527, 79 437, 440, 480 (1959) (quoting Ohio Oil Conway, 281 159, 310, 314, 74 775 (1930)). Kahn Shevin, 416 351, 94 1734, 189 (1974); Independent Warehouses, Scheele, 331 70, 67 1062, 91 1346 (1947); Madden Kentucky, 309 83, 406, 590 (1940); Fox Jersey, 294 87, 55 333, 780 (1935); Rapid Transit 573, 721, 1024 43 Where devises infringe fundamental demanded justifying infringement, more, specially rights. Massachusetts Retirement Murgia, 427 307, 312, 2562, 2566, 49 520 (1976) (per curiam) (emphasis added), "equal analysis strict scrutiny classification impermissibly interferes right. ." Medical Ass'n FEC, 453 182, 101 2712, 567 Maher Roe, 432 464, 2376, 53 484 Storer 415 724, 1274, 714 Party Texas White, 767, 1296, 744 San Antonio School District Rodriguez, 411 1278, (1973). terms infringed; "abridgment" guaranties. 44 departs rule, refusing petitioner fellow offers failure self-reproaching conclusion 45 possibility. newspapers." 589-590 (footnotes omitted). 46 Considering complexity issues resolves Term, admonition understand. specifics confession incomprehensible. 47 Wisely weigh says resultant others: 48 "[T]he '[t]he sanctions.' Surely mean say. should well aware discussion (1936), quite capable changes intended Holmes aptly put it, "[T]his defeated ways defeat discriminate far abolishing sits." Panhandle Knox, 277 218, 223, 453, 857 (1928) (Holmes, dissenting). Furthermore, itself intimates employed doubt constitutionally permissible. 590, obviously sanctions," higher rate. Likewise, newspapers' absolute many attack; away. show rational. showing easily. [sales] impractical." "unpersuasive," "sales goods" disagree. inexpensive volume approximately every 640,756 Sunday. 481,789 619,154. commonly goods. concluded boys, corner newstands, vending machines unreliable unsuitable Must everyone 26¢ machine 25¢; 30¢, 4¢ profit; kept absorbing tax? summary, find collect newspapers, one's advantage; distributors enforce collection, consumer odd amounts. reasonable "There choice insufficiently tailored amendment whatsoever." Cf. Clover Leaf Creamery 449 456, 715, 659 summary receive agree. explained $4,000 203. benefited $16,000 years question; Absent drawing construed 498, (1946). specifically "deliberate device" illicit 208. nothing cast conclusion. explained: 52 "[I]t construct economically sound order classify insure paying collecting outweigh benefit state. 'Traditionally fitting programs needs usages equitable distribution burden.' [60 408, 590] (1940)." 209-210. drafting credit, acted reasonably rationally fit own usages. 54 fair share abridging millions additional dollars liability. Certainly hollow victory seriously Amendment." For forth affirm BLACKMUN joins footnote Currently, 9¢. 297A.03(3) enacted, threshold 16¢. 3(2), 2180. amendment, provision full: "For privilege property, tickets admissions amusement athletic events, electricity, gas, exchange telephone service use, storage consumption hereby four percent aforementioned section [the "Motor vehicles shall market value transport motor acquired months prior "Notwithstanding provisions 297A.01 297A.44 contrary, exceeding 297A.25, subdivision clause (i) section." final paragraph addition since increase 6, 1981, 1981 2396, changed litigation. records proceedings preserves recordings, recordings intent. Legislative Manual, Rule 1.18, Rules House Representatives; Permanent Senate (1981-1982). third noting, effect. visible consumers, must, law, stated separately 297A.03(1) FLSA excluded seamen farm workers. 193, 497. rejected, publisher's exclusion workers precluded employees here establishes successfully challenge isolated exceptions rule. Here, everything true opinions rarely speculate precisely how given expression. limited exactly apply. recorded debates Representatives couched terms, perhaps response Madison's representatives stray acknowledged principles. States: Analysis Interpretation, 92d Cong., 2d Sess., S.Doc. 92-82 936 (1973); Z. Chafee, Speech (1941). Consequently, principles, requiring legitimate interest, 7, infra. offended Framers, hesitated ground alone. Prior restraints, instance, core Framers' treat suspect. Near 697, 713, 716-718, 625, 630, 631-32, 1357 (1931); (1936) (relying "taxes knowledge" inspiring knowledge). REHNQUIST'S dissent analyzes protection, familiar tiers scrutiny. Post, 599-600. We, arising directly perceived supra. appropriate balance State. Under precedent, survive outweighs achieved significantly. 257-258, 1055, (1982); 376-377, 1678-79, 672; (generally religious objections). insists argument—that constitutional—is incorrect, citing Follett McCormick, 321 64 717, 938 (1944), Murdock Pennsylvania, 319 105, 870, 87 1292 (1943), Jones Opelika, 890, 1290 (1943). (1951), rebuts argument. There, ordinance prohibiting solicitation, subscriptions magazines, activity covered Martin Struthers, 141, 862, 1313 similar free literature, emphasizing information nature noncommercial. 642-643, 932-33. recognized, majority substantially undercut Tribune, invalidated ordinances flat literature. 649-650, (Black, dissenting) ("Since reconciled Jones, Struthers good judicial practice calls forthright overruling.") Breard, distinguishable income speaker expenses administering regulatory condition right speak. engaging activity, defendants rendering highly susceptible Follett, 576-578, 718-19; Murdock, 112, 113-114, 874, 875; 316 584, 609, 611, 62 1231, 1244, 1245, 86 1691 (1942) (Stone, C.J., dissenting), adopted (1943); 249, 448; 1357. regard, cited Indeed, consistently nondiscriminatory 683, 2657, (dictum); 578, 719 (preacher property) 874 (same) (dictum). entails unusual marketing practices newspapers—sales instance. 602. not, explain using chewing gum candy, marketed 297A.01(3)(c)(vi), (viii) (defining food sale); 297A.04 (dealing operators). prices instead retaining 25¢, rectifies problem, increases publishers' costs. penny, forces choose pass exact increment along consumers 26¢; nickel retain leave absorb deprecates concern, asserting threat, 601. assertion security prove identify explore further, avoided business. Washington ----, 1344, ---- (1983); (1977). M'Culloch Maryland, Wheat. 316, 579 (1819), Supremacy Clause discriminates direct Government. Mexico, 720, 730-734, 1373, 1380-82, 580 spite remain discriminatory. 734-735 1382-83 11; 460, 703, situation, "[Washington] accommodated 1350. permitting force limits, Washington, 1350, compare Nothing, prevents manner others, goals. WHITE regularly inquires Clause. cited, inequality manufacturer-users [was] admitted," Halliburton Well Cementing Reily, 373 64, 1201, 1204, 202 (1963), produced "grossly distorted result," Norfolk Western Ry. Missouri Comm'n, 390 317, 326, 995, 1001, 1201 added). "gross overreaching," vastness latitude encounters restraints." 1001; Alaska Arctic Maid, 366 199, 205, 929, 932, 227 (1961). delicate cherished stake, tolerance diminishes drastically, risk unable accurately finely tuned standards. would, position burdens. And, clarity burdens, permissible burdensome, later escape detection courts, 588, suggests, require Disparaging proof, calculate hypothetical 597-598. undertaking, think, illustrates inhere inquiry, Musgrave Musgrave, Public Finance Theory Practice 461 (2d 1976) (detailing calculating tax); 475 (in "quantitative sketchy underlying procedures necessarily crude"). calculation tells about impact years. portion advertising, Newsprint Information Committee, Newspaper Facts Glance (24th 1982), exceed inputs. product. relationship time. Second, if, assumes elsewhere, 602, price, presumably decrease demand. demand lead dissent. Samuelson, Economics 381-383, 389-390 (10th 1976); (3d 1980) ("[I]t necessary, designing policies, private sector respond."). dissent's characterized hypothetical. Taking chance calculations others erroneous forbids. Three $1,000, $8,000. $100,000, $608,634. $3,000. incurring $100,000. 203-204 4, 183, 513, 514, (upholding semi-weekly "was parity town enterprises.") renders address arguments Buckley Valeo, 612, (1976), Stewart Dry Goods Lewis, 550, 525, 1054 (1935). (1961) (Alaska occupational collected freezer ships salmon Alaskan canneries 6% obtained canning). (1968), (holding rolling stock based mileage formula violated process) ("[W]hen comes forward strong tending yield grossly obliged counter evidence. ."); Great Northern 278 503, 509, 191, 192, 477 (1929) ("We indicate consideration, plus already exceeds 'what valued going [or is] relatively kinds property.' Pullman Richardson, 261 330, 339 [43 366, 368, 682]"). 339, 682 (1923); Cudahy Packing 246 450, 453-455, 373, 374-75, 827 (1918); 223 335, 211, 459 (1912); Galveston, Harrisburg Texas, 210 217, 638, 1031 (1908). Henneford, coming states. Excepted speaking Cardozo, "When account up, stranger afar consequence ownership dweller gates." 583-584, 527-28. went commerce); Scripto Carson, 362 207, 619, (1960) tax). strictly speaking, term art "publications." include materials supplements, shoppers guides, house organs, trade professional journals, serially issued comic books. 331.02 409(b) (1979).

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