Document: 464 U.S. 7 104 S.Ct. 291 78 L.Ed.2d 10 ALOHA AIRLINES, INC., Appellantv.DIRECTOR OF TAXATION HAWAII. HAWAIIAN Appellant v. DIRECTOR Nos. 82-585, 82-586. Argued Oct. 4, 1983. Decided Nov. 1, Syllabus A Hawaii statute imposes a tax on the annual gross income of airlines operating within State, and declares that such is means taxing an airline's personal property. Section 7(a) Airport Development Acceleration Act 1973 (ADAA) prohibits State from levying tax, "directly or indirectly, persons traveling in air commerce carriage sale transportation receipts derived therefrom," but provides property taxes are not included this prohibition. each brought action for refund assessed under statute, claiming was pre-empted by § 7(a). The Tax Appeal Court rejected pre-emption argument, Supreme affirmed. Held: pre-empts statute. Pp. 11-15. (a) When federal unambiguously forbids to impose particular kind industry affecting interstate commerce, as does here its plain language, courts need look beyond statute's language determine whether state pre-empted. P. 12. (b) Moreover, nothing ADAA's legislative history suggests Congress intended limit 7(a)'s pre-emptive effect passengers save one imposes. Although enacted deal primarily with local head airline passengers, contains many references fact airlines. 12 -13. (c) styled measured rather than straightforward entitle escape exemption. Such styling mask purpose levy upon airlines, thus making it at least "indirect" receipts. 13-14. 65 Haw. 647 P.2d 263, reversed remanded. Richard L. Griffith, Honolulu, Hawaii, appellants. William D. Dexter, Olympia, Wash., appellee. Justice MARSHALL delivered opinion Court. 1 These appeals present question 49 U.S.C. 1513(a) preempts State. We conclude preempted. 2 * In 1970, committed government assisting States localities expanding improving nation's system. See Airway Pub.L. 91-258, 84 Stat. 219. same session, established Trust Fund funnel resources airport expansion improvement projects. Revenue 208, 236, 250-252. As originally devised, received revenues several aviation taxes, including 8% domestic tickets, $3 international flights out United States, 5% freight. §§ 203, 204, 238-240 (codified amended, 26 4261, 4271 (1976 ed. Supp.1981)). generally Massachusetts 435 444, 98 1153, 55 403 (1978). 3 Once passed established, arose municipalities were still free additional travelers. Evansville-Vanderburgh Authority Dist. Delta Airlines, 405 707, 92 1349, 31 620 (1972), ruled neither Commerce Clause nor precluded authorities assessing boarding airports. noted, "No specific congressional declaration evidences deny pre-empt power charges designed help defray costs construction maintenance." Id., 721, S.Ct., 1357. 4 Following decision, Committees both Houses held hearings taxation transportation.1 Both concluded proliferation burdened transportation, and, when coupled levies, imposed double travelers.2 To these problems, (ADAA), provision issue appeals. 93-44, 7(a), 87 88, 90. That section, which currently codified 1513,3 reads: 5 "(a) No . shall collect fee, charge, other directly therefrom. 6 "(b) Nothing section prohibit collection those enumerated subsection net franchise sales use goods services." For prior May 21, would be preempted 1513(a), postponed effective date until December 31, 1973. Ibid. II 8 Appellants Aloha Inc., Hawaiian commercial carry freight, mail among islands Hawaii. Throughout periods relevant appeals, have been public service companies, see Haw.Rev.Stat. 239-2, 269-1 Supp.1982), subject State's company provides: 9 "There levied four per cent year business. carrier, tangible intangible, going concern value, lieu [general excise] chapter 237 any tax." 239-6 (1976). 1978, Airlines sought refunds between 1974 1977 ground had 1979, filed similar seeking paid 1978. separate decisions, Appellants' preemption arguments, re No. 1772 (Haw.Ct.Tax App.1978); 1853, 1868 App.1980). On consolidated appeal, affirmed, dissenting, 263 (1982). then timely notices noted probable jurisdiction, 459 ----, 103 74 948 (1983), we now reverse. III 11 appear invalidate 239-6. expressly receipts4 selling carrying commerce. avoid direct conflict looking Congress's enacting ADAA early 1970's. Since carriers opposed travelers, reasoned did come ambit 1513(a)'s prohibitions. cannot agree Court's analysis. First, preempted.5 Thus, erred failing give meaning 1513(a).6 13 Second, even if absence express proscription made necessary go preemptive like 239-6.7 abounds also airlines.8 example, Senator Cannon, sponsors, clearly stated floor debate: "The bill fees, either commerce." 119 Cong.Rec. 3349 (1973). 14 Finally, unpersuaded Appellee's contention that, because legislature straight-forward should 1513(b)'s exemption taxes. manner has described categorized 239-69 indirectly" transportation. Beyond question, constitutes therefore preempted.10 IV 15 conclusion, join Alaska New York11 view proscribes imposition judgment reversed, cases remanded further proceedings inconsistent opinion. 16 It so ordered. Hearings S. 2397 et al. before Subcommittee Aviation Senate Committee Commerce, 92d Cong., 2d Sess., 129-198 (1972); H.R. 2337 Transportation Aeronautics House Interstate Foreign Sess. (1972). S.Rep. 93-12, pp. 17, 20-21 (1973) U.S.Code Cong. & Admin.News 1973, p. 1434; H.R.Rep. 93-157, 4-5 1982, amended 1513 discriminatory carriers. Improvement 97-248, 532, 96 701 1513(d)). Being after periods, amendment no bearing Appellee concedes phrase "gross income," 239-6, synonymous receipts," used 1513(a). Brief 7, n. 2. apparently considered itself obliged Rice Santa Fe Elevator Corp., 331 218, 67 1146, 91 L.Ed. 1447 (1947), progeny examine thoroughly intentions declaring 13-16, 272-273 progeny, however, involved implicit statutes. Rules developed apply court must decide law though legislated preemption. rules, therefore, little application confronts explicitly laws. professed confusion over "paradox" prohibition certain reservation States' primary sources revenue, supra, 16, P.2d, 273. find paradox 1513(b). limited number 1513(b) clarifies "taxes (a)," While explains exactly why chose distinguish reserved 1513(b), quite clear make distinction, honor choice. Indeed, presented opportunity exempt declined grant During ADAA, representative Ohio Commission asked responsible expand permit fairly apportioned State," could maintain Hawaii's 4082 93d 1st 246-253 without Ohio's proposed amendment, Attorney General issued concluding Op.Atty.Gen. 73-117 (Nov. 20, 1973). See, e.g., (1973); H.R.Conf.Rep. 93-225, 18,045 (statement Sen. Cannon); 17,345 Rep. Devine). most likely explanation seemingly curious way characterized time, distinguished matter validity Clause. Compare Railway Express Agency Virginia, 358 434, 73 411, 450 (1959) (upholding receipts), 347 359, 558, 337 (1954) (striking down functionally equivalent business privilege tax). But cf. Complete Auto Transit, Inc. Brady, 430 274, 97 1076, 51 326 (1977). constitutionality course unambiguous contained compels us well Amici point states statutes ability retain collected during past decade will affected our decision today. acknowledge interpretation may result disruption systems taxation; are, bound authority regulate Arizona Public Service Co. Snead, 441 141, 150, 99 1629, 1634, 60 106 (1979), trust amend concludes, reconsideration, sweep current version too great. Wein Air Alaska, 3AN 81-8582 Civil (Alaska Sup.Ct.1983), appeal docketed, --- S.Ct.); Transport Association America York Department Taxation Finance, A.D.2d 169, 458 N.Y.S.2d 709 (App.Div.), aff'd, 59 N.Y.2d 917, 466 319, 453 N.E.2d 548 cert. pending, 83-162; ex rel. Dept. Cochise 128 Ariz. 432, 626 596 (App.1980) (§ commerce); Allegheny City Philadelphia, Pa. 181, 309 A.2d 157 (finding Philadelphia preempted).

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