Document: 339 U.S. 542 70 S.Ct. 806 94 L.Ed. 1053 CAPITOL GREYHOUND LINES et al.v.BRICE, Commissioner of Motor Vehicles Maryland. No. 118. Argued Dec. 5, 1949. Decided May 15, 1950. Clarence W. Miles, Baltimore, Md., for appellants. Hall Hammond, appellee. Mr. Justice BLACK delivered the opinion Court. 1 The basic question presented is whether one two Maryland taxes imposed on all common carriers transporting passengers over roads can be exacted from interstate consistently with commerce clause Federal Constitution. Art. 1, § 8, cl. 3. A subsidiary contention impliedly raised by carrier appellants here that tax invalid as applied to them. Supreme Court upheld tax, 64 A.2d 284. case appeal under 28 U.S.C. 1257(2), U.S.C.A. 1257(2). 2 challenged prescribed 25A 66 1/2 Annotated Code Maryland, 1947 Cum.Supp. In language section imposes 'a 2% upon fair market value motor vehicles used in a condition precedent issuance certificates title thereto (the such being further registration and operation State Maryland) * *.'1 3 First. Appellants do not contend they are wholly exempt state taxation. This others have compensate fairly privilege using its or cost administering traffic regulations.2 Courts invoked invalidate only finding that: (1) discriminated against favor intrastate commerce; (2) was doing an business distinguished exacting contributions road construction maintenance administration laws; (3) amount exceeded compensation state.3 applies without discrimination. proceeds purposes, held use. And neither courts nor specifically charged will always excess compensation. Their challenge leveled formula, amount. 4 taken many forms. Examples based mileage, chassis weight, tonnage-capacity, horsepower, singly combination—a list which does begin exhaust innumerable factors bearing fairness each state.4 difficulty gearing these recognized this early Kane v. New Jersey, 242 160, 168, 37 30, 32, 61 222, where it said so long fees reasonable 'it clearly within discretion determine use highways automobiles shall determined way fee, payable annually semiannually, toll mileage otherwise.'5 Later, rejecting contentions validity must formula rather than result, flat fee 'is forbidden burden commerce' unless 'unreasonable amount.' Morf Bingaman, 298 407, 412, 56 756, 758, 80 1245. See also Aero Mayflower Transit Co. Board R. Com'rs, 332 495, 68 167, 92 99, annotation thereto, 109, 119—120. Yet geared weight any other factor relevant considering Thus, we depart prior decisions, should judged stand proven unreasonable granted. 5 Appellants, however, effect urge make exception general rule strike down regardless limits No precisely like has previously been before us. argue vehicle because varies relation support contention, point facts shown record. Each appellant carriers, according admitted allegations, bought new passenger-carrying declared purpose routes. portions three routes 9, 41 miles respectively. computed $505.17, $580 $372.55, showing indicate falls short achieving uniformity among Moreover, argued, may well unwise subject monetary temptation incident application hits when purchases bus. But our issue. noted total charge show same disparity carriers. For charges tax,6 added what actually privileges. Thus vary substantially traveled. 6 We recognize absence congressional action rules power states traffic, therefore alter if necessary protect obstructive barriers. full appreciation congenital infirmities formula—and indeed field—as present test validity, no means sure remedy suggested would bring about greater ills. Complete require every affecting appropriate These factors, those constitutionality taxes, countless content 'rough approximation precision.' International Harvester Evatt, 329 416, 422—423, 67 444, 447, 91 390. additional adds administrative burdens enforcement,7 fall alike taxpayers government. sufficient justify ignoring even key although result face appears bear unequal different Georgia Public Service Comm'n, 295 285, 289, 55 709, 710, 79 1439. Upon type reasoning rests valid roads. 7 Our adherence existing mean group remediless out line due Under prescribed, applied, proper proof obtain judicial declaration their invalidity applied. Ingels Morf, 300 290, 57 439, 81 653. Cf. Clark Paul Gray, Inc., 306 583, 59 744, 83 1001. 8 If prohibiting measured declared, think Congress it.8 decline hold law however 9 Second. Little need faint levied While did pass question, holding had failed prove excessiveness, assignments error mention challenge. That court satisfactorily disposed size relationship privileges respect who challenges law. 598—600, 752, 753, agree Marylnd there complete utter lack ground. Dixie Ohio Express Revenue Commission Georgia, 72, 77—78, 435, 437, 438, 495. 10 Affirmed. 11 DOUGLAS took part consideration decision case. 12 FRANKFURTER, whom JACKSON joins, dissenting. 13 Once more called scrutiny Commerce Clause requires enjoy freedom taxation outside narrow States free commerce. 14 essential easily stated. By various provisions law, operate until registered As prerequisite certificate vehicle. Section Article Cum.Supp., so-called titling 'fair value' 'for original subsequent sales resales at periodic intervals but purchase made operated whole highways, old. entire devoted purposes. 15 bus lines, roads.2 purchased bus, refused pay ground They were denied thereupon filed petitions mandamus secure Appeals sustained levy, 284, appeal. 16 I. Since (levy) engaging commerce,' imposition constructed maintained regulation. Interstate Transit, Inc. Lindsey, 283 183, 185, 51 380, 381, 75 953, see 76, right levy compensatory special benefits settled. subjection particular principle. Clyde Mallory Lines Alabama, 296 261, 267—268, 194, 196, 197, 215, cases cited. now review comes scope principle tested considerations guided adjudication. (All dealt specific problem listed, described, Appendix opinion, post, p. 561, 817.) announced, it, too, reason Clause. 17 exclusively interstate, inevitably inroad normal burdens, securing affords exact return. 953. requirement close accounting responsibility, exercise loose judgment fixing quid pro quo. formulas dependent actual State's satisfy constitutional test, more, since reflect obvious between demanded given State. Taxes ton-miles encountered here. Busses Corp. Blodgett, 276 245, 48 230, 72 551; Continental Baking Woodring, 286 352, 52 595, 76 1155, A.L.R. 1402. 18 Again, makes clear disposition statutory use, classification attributed Compare 953 (no allocation proceeds) Poor, 274 554, 47 702, 71 1199 (allocation); Appendix, 817. ignored annual Hendrick 235 610, 35 140, 385, 222; carrying capacity, 1199, Hicklin Coney, 290 169, 54 142, 78 247; manufacturer's rated regard factors. 1439; 1245; 1001; Railroad 99. 19 From body extracts highway purposes formally discriminate commerce, cannot attacked classification, 'excessiveness' Such view collides guiding limitation announced 186, intended 'will taxpayer shows bears discriminatory.' wary qualification formulated Brandeis, most alert deny way. Likewise, today's disregards McCarroll Greyhound Lines, 309 176, 60 504, 84 L,.ed. 683, simply standard measurement found unrelated gave. case, allocated, and, here, sought purpose. There collecting sums needs subjected severe economic strain. defect lay capricious formula. 20 reached lent fact limited reflecting extended alike. involving characterized 'moderate,' matter illuminatingly put Cardozo: 21 'There difficulties basis i.e., mileage). extensive wills be. nothing oppressive imposed. One receives limit wronged his own refusal freely he may.' 711, L.Ed.1439. 22 Systems achieve ideal. Constitution demand pure satisfied practical unreason. Though granted, exercise, sanction measure privilege. Reason precludes notion disregard nexus tax. decisions reason. naturally deem relevant. 173, 144, 247. costs proximate accuracy, hobbled exercising rough devising formulas, giving size, restraints decency. 594, 750, State, eye problems administration, reasonably conclude some circumstances sufficiently significant material call insistence impractical details, proper. carefully pointed it. 410, 757, 600, Comm'rs, 506, 23 Maryland's fails meet justifications sustain ot Giving court's indulgence supporting find function affords. It best tenuous roads, differences vehicle's appointments age Differences large financial owners investment policies, hardly furnish return measured. 24 irrelevance reinforced incidence. transfer owner. treated vehicle, then attributable shift ownership. deemed owner, depends frequency turnover equipment. Unlike comparable heretofore sustained, extraneous impose 25 concedes this, theory intrinsically reasonable. Validity dollars cents; questioned. occasion surprise breaks Amount course played context raises issues I shortly advert. never regarded itself substitute classification. novelty doctrine unconstitutionality, establish constitutionality. gives warrant determining going through merely entails, enough. cast surely decide how big amount, abstractly considered, economically absorbed engaged exaction passes.3 Contrariwise, competence judges relevance criteria allowable ends. How work involves familiar practicalities 26 doubt formulating classifications express needed accommodation federalism facilities afforded compensation, across lines desire propelling forces establishment nation greatest sources strength. Of unduly rein States. Practical, ideal, drawn, broadest reach policy States' wide choice allowed possible traveling devised do. course, matters degree. Drawing recognition degree, perhaps chief characteristic process Difficulties applying abandonment impossible task deciding fiscal individual carrier. 27 II. fatally defective, saved quite apart serious questions relating disregards. Court's suggestion bad exceeds compensation' term selfdefining intimation regarding standards excessiveness determined. Reference Presumably, therefore, still committed high amounts collected regulations professedly levied. Like forms required contribute share, broadly conceived, distinctive contribution guise services compensated. excessive sense. federal system, particularly rigorous safeguarding national interests gives—with elusiveness value. play favorites taxing system confined boarders expressed conducted lines. favoritism barred overtly designed results scheme. obviously disadvantages 29 So bases both provided may, operations fanciful hypothesis, involve undue unlimited form, thus theoretically vehicles, intrastate, whenever operation, while necessarily forego time character, operates well. average instances, valuable danger—and danger—that several States, though significantly operators tax.4 30 When relatively small equivalent practicalities, danger unfair falling remains correspondingly small. Union Brokerage Jensen, 322 202, 210-211, 967, 972, 973, 88 1227, 152 1072. presents dangers unlike arising unapportioned gross receipts transportation beyond impose. Central Mealey, 334 653, 1260, 1633. prevailed Sprout City South Bend, 277 163, 502, 833, 62 45: 31 'A substantial busses plying streets continuously local service making, busses, single trip daily, could highways.' page 170, 45.5 32 times aware demonstrated reiteration throughout 'reasonable especially Comm., 1439: 'The moderate amount,' 507, 99: '* aggregate combined less sustained.' 33 inescapably much too much, nature becomes important compares similar cases. done, individually appellants, magnitude unduly. Examination decided reveals largest $15 six months $30 per year, $75.6 337 amounted $372, $505 $580, annual, sustained. order equate them, information number years typical likely Even taking assumption Appeals, evidence record, five estimate,7 Therefore accept remanded anticipated period appraising 34 III. failure treat commerce—quite terms costs—is explicit rejection related alone justifies Both resolution conflicting interests, nice distinctions. attempts avoid seems me absolutes. reasonableness degree determination affects harmonious functioning system. believe solved disregarding interest appear monstrous Hudson County Water McCarter, 209 349, 355, 529, 531, 828, Ann.Cas. 560. reverse. APPENDIX 36 Analysis Decisions Involving Taxation Highway Privileges1 Type Name Basis 38 1. All Horsepower 39 40 140 (1915). 2. 42 (1916). 43 Property hire Manufacturer's 44 702 (1927). hire. capacity plus regularity 45 46 4. Passenger Mileage 230 (1928). 49 5. Seating 50 502 6. 53 380 (1931). 7. Carrier property Gross-ton sale. 595 (1932). 8. Carrying 58 142 (1933). 9. Flat U. S. 709 (1935). 10. transported 63 756 sale (1936). wheels, usually in"caravans." 65 (a) (b) Being towed. 11. 439 (1937). 69 "caravans." 12. hire, having— 1/2-ton trucks. 73 435 (1939). capacity. 74 2-ton Same. (c) Trailers. Weight. 77 13. 744 wheels 14. gasoline gallons carried tanks into 82 504 (1940). 15. Two 85 167 (1947). TABLE CONTINUED Range 86 87 Legislative indication 89 involved2 class2 road-use Decision 90 Not issue3 $6-$18 Funds allocated Valid. $10 $3-$10 $20-$200 93 1¢ mile $50 $25-$75 None Invalid, 95 privelege 96 $500 $50-$750 Invalid 97 98 5/10 mill allocted 99 gross-ton mile. 100 $30-$400 101 $25 102 Statutory declaration, 103 funds. 104 $7.50. 105 $5.00. 106 limit) 107 (for days) 108 reimbursement expenses 109 regulatory expenses. 110 known 111 funds 112 $50. 113 $75. 114 115 13.$15 116 months). 117 14.6.5¢ gallon becausr bore 118 119 120 15.$25 121 set forth derived briefs Unless otherwise indicated, fixed basis. attack statute whole, introduced passenger seat one-thirtieth cent traveled Ann.Code (1947 Cum.Supp.), 81, 218. Prior carriers; 'titling tax' only. At legislature changes. applicable reduced seatmile one-eighteenth cent. Chapters 560 326, Laws General Assembly Notes, 109. 45; 953; collections cited note 2, supra. examples hinged, Note, 119—123. statement license horsepower. person liable nonresident driving state. citation imply state's collect occasional travelers broad involved. R.R. 503, 171, opinions Edwards People California, 314 164, 119. example complexities springing weigh numerous Indiana Eavey Department Treasury Indiana, 216 Ind. 255, 264, N.E.2d 268, 272, axle, load tires used, elements described act, direct hazards passed comprehensive legislation regulating 'nothing chapter construed affect powers *.' 302(b), 302(b). Brashear Freight D.C., F.Supp. 865; Maurer Hamilton, 598, 726, 969, 135, 1347. interesting duty rates Act keep accounts 'cost licenses assessed operating revenue fees, plate items Title 49, 182.5220, Fed. Regs., Supp. portion reads fully follows: 'In addition hereby excise thereof, after July 1947, rate centum issued.' Although engage extent transportation, argued either below 170—171, 45. Court, sure, avow effective consequence determines validity. abandons, does, inquiry except finances carrier, perchance left large. event, bound ad hoc judgments asks hurt heightened authorized route. Quite illustrative seriousness concerning Capitol I.C.C. route Cincinnati, Washington, distance 496 miles, nine To say par ignore admonition 'Regulation technical conceptions Galveston, Harrisburg San Antonio Texas, 210 217, 225, 638, 639, 1031. Brandeis' reference exclude involved seating Rather, referring privilege, taxes. potentiality interestate sharply municipality cities along range $20 $200, U.s. 247, $400. subject, faced n. 3, estimated 'useful life' busses. considered probable another.

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