Document: 370 U.S. 607 82 S.Ct. 1297 8 L.Ed.2d 720 CENTRAL RAILROAD COMPANY OF PENNSYLVANIA, Appellant,v.COMMONWEALTH PENNSYLVANIA. No. 400. Argued March 20, 1962. Decided June 25, Roy J. Keefer, Harrisburg, Pa., for appellant. George W. Keitel, appellee. Mr. Justice HARLAN delivered the opinion of Court. 1 In this case we must decide whether Commonwealth Pennsylvania may, consistently with Commerce Clause and Due Process Equal Protection Clauses Fourteenth Amendment to Constitution United States, impose an annual property tax on total value freight cars owned by appellant, a corporation, despite fact that considerable number such spend substantial portion year lines other railroads located outside State. The Supreme Court upheld application State's Capital Stock Tax, Purdon's Pa.Stat.Ann., 1949, Tit. 72, §§ 1871, 1901, full all appellant's cars.1 403 Pa. 419, 169 A.2d 878. We postponed consideration question jurisdiction hearing merits, Central R. Co. v. State 368 912, 195, 7 129, now find appeal is appropriately before us under 28 U.S.C. § 1257(2), U.S.C.A. 1257(2). E.g., Standard Oil Peck, 342 382, 72 309, 96 L.Ed. 427. 2 take facts pertinent decision from stipulation submitted parties trial court. appellant corporation authorized operate railroad only within It has not been licensed do business elsewhere. company's track runs anthracite coal region in Pennsylvania-New Jersey border, at Easton, where it connects Railroad Company New (hereinafter CNJ), which owns outstanding shares stock. 3 1951, was assessed, 3,074 were put use ordinary transport operations three ways: (1) its own tracks; (2) CNJ tracks Jersey; (3) unaffiliated their various parts country. CNJ's pursuant operating agreements obliged pay daily rental equal then-effective rate prescribed Association American Railroads. order facilitate interstate transportation interchange equipment among carriers, as 49 1, pars. (4), (10), (12), (4, 10, 12), members Association, including had entered into separate 'Car Service Per Diem Agreement' each subscriber available subscribers established per diem rental. Consequently, during 1951 many also used Pennsylvania. 4 Appellant contended state courts, does here, computing capital stock tax, measured exempt taxation (note supra), constitutionally entitled deduct taxable assets proportional share reflecting time spent support claim offered statistical summary seeking prove average more than 1,659 (including CNJ) no Pennsylvania.2 5 claimed approximately 1,056 having both without As cars, sought allocate portions combined ratio road miles user-railroad's bore mileage throughout States.3 6 These claims disallowed Board Finance Revenue, Common Pleas Dauphin County, Pennsylvania.4 courts relied primarily Court's York & H.R.R. Miller, 202 584, 26 714, 50 1155, constitutionality domiciliary ad valorem levied upon railroad's rolling stock, albeit 'some proportion (railroad's) * always (was) absent state.' Id., 595, 716. I. Since Miller decided numerous cases touching intricate problems accommodating, Clauses, taxing powers States respect instrumentalities commerce.5 None these decisions weakened pivotal holding Miller—that or taxpayer owning cannot avoid imposition domicile's merely proving some determinable fraction part year. This held domicile retains tangible personal 'not acquired actual situs elsewhere.' Johnson Refining Oklahoma, 290 158, 161, 54 152, 153. because casts forbidden burden commerce subjecting corporations, though they be engaged transport, nondiscriminatory taxes. 'multiple operations,' 385, 310, offends Clause. And obviously multiple possible if there exists jurisdiction, addition taxpayer, may tax. 9 Nor confine power being taxed spends borders. Union Refrigerator Transit Kentucky, 199 194, 36, 150, prohibited owner's permanently Northwest Airlines, Inc., Minnesota, 322 292, 64 950, reaffirmed principle earlier elsewhere domicile. See supra; Southern Pacific 222 63, 69, 32 13, 15; supra. If insufficient contact render any one jurisdictions 'tax situs,' surely appropriate presume affording 'opportunities, benefits, protection' due process demands prerequisite taxation. Ott Mississippi Valley Barge Line Co., 336 169, 174, 69 432, 434. 10 Accordingly, who contends are beyond reach same similarly another jurisdiction. Cf. Dixie Ohio Express Revenue Comm'n, 306 59 435, 83 495. 11 controlling here is, therefore, might imposed domiciliary's moving turned "a defined corpus"—there consisting boats barges traveling along inland waters 'could several states apportionment basis.' 384, 310. 12 exemption it, consider stipulated show II. 13 With year, establishes 'were run fixed routes regular schedules over Jersey.' Their habitual employment manner would assuredly Jersey's apportioned fleet cars. Marye Baltimore 127 117, 123—124, 1037, 1039, 94; Pullman's Palace Car Pennsylvania, 141 18, 23, 876, 878, 35 613; Lynch, 177 149, 20 631, 44 708; 162—163, 154; cf. 432; Braniff Airways, Inc. Nebraska Equalization, 347 590, 601, 74 757, 764, 98 967. 158 number, could included computation respect, (which difficult reconcile situated locomotives, note 4, supra) accepted. III. 14 conclude, however, record permitted value, remainder those Agreement were, language stipulation, 'regularly, habitually and/or continuously employed' manner, but did 'on schedules' CNJ. 15 precluded imposing extent State, subjected elsewhere, validity Pennsylvania's determined considering disclose Had shown traveled through routes, even silent length nondomiciliary doubtless follow traffic flowed fair apportioning formula. 757. unconstitutional thus taxes supra, 310.6 16 Alternatively course Hall, 174 70, 19 599, 43 899, sustained Colorado territorial limits although agreed 'never said numbers nor times, particular trains.' 600. Habitual irregular constitute sufficient establish permitting so engaged. 17 On us, evidence, except either presence, missions, States. disputed listed have way knowing which, any, whose borders single sporadic.7 obvious wholly unilluminating consistency 18 short, CNJ, shows employed relevant But leaves large possibility showing suffice our exclude value. Neither properly read contrary. former, remanded further proceedings inconsistent' question, 'so far (permanently) states,' subject 211, 41. latter, existence sufficiently appeared record. Note 6, To accept proposition mere general continuous movable result unsound rule; instances ultimately found existed escape kind entirely. nothing contrary Peck. neither points different conclusion. airplanes flown routes. 600—601, 763, 764. careful point out 'the statute 'was intended cover actually covers State—and meant year." 175, 435. (Emphasis added.) impossible tell, what annually given IV. Finally, think protection argument insubstantial correctly rejected For purposes reasonably differentiate between lay considerations justify classification federal constitutional standpoint need hardly elaborated. concluded probability greater maintains not. Or franchise compelled mitigation prevent oppressive burden. event, basis measure's reasonable violate Allied Stores Ohio, Bowers, 358 522, 526—528, 79 437, 440, 480; Stebbins Riley, 268 137, 142, 45 424, 426, 884; Kidd Alabama, 188 730, 23 401, 47 669. 21 conclude failed sustain regard. 22 judgment vacated inconsistent opinion. ordered. Judgment remanded. FRANKFURTER took case. 24 WHITE 25 BLACK, concurring. invalidated excessive risk property, following principles announced prior I dissented.1 While my views expressed remain unchanged, necessity deciding requires me make doctrine declared long remains committed it.2 Where party seeks invoke doctrine, agree should rest challenging his reference day. foregoing reasons concur insofar rests 27 partial invalidation day fully supported interpreted it. content discuss all. since process, necessary express doubts about strike down laws. modern invalidate two doctrines: 'jurisdiction tax' boundaries, prohibited. Nothing history Amendment, indicates intention doctrines concerning originated all, first adopted 1868.3 striking lack after passage provision mentioned; simply struck saying 'giving effect acts legislature interests lying her jurisdiction.'4 others followed years adoption rested all.5 violation until 19036—35 then historical why cryptic words justified otherwise lawful reveal giving meaning next case.7 third applying complete explanation led Holmes say: 'It seems reached court probably desirable one, understand how can deduced 14th Amendment; Chief feels difficulty, proper say doubt removed.'8 29 ever laws finding substantially Clause.9 still never adequately explained just is. Because entertained flexible expansive interpretation laws,10 presently prevailing Clause, occasion suggest reconsideration applicability 30 DOUGLAS, whom THE CHIEF JUSTICE STEWART join, dissenting part. 31 stipulations (of $525,765.71) holds 2189.30 $7,282,773) regularly, habitually, schedules. authority 1155; intact correct denying claimed. 33 deference cannot, allow adhere recent decisions. Line, 93 585, allowed Louisiana City Orleans levy foreign corporations operated assessments 'based appellees' entire line.' 171, 433. barge rule applicable railroads, saw 'no practical difference concerned vessels commerce.' went 34 'The problem determine 'what organism attributed functions.' Nashville, C. St. L.R. Browning, 310 362, 365, 60 968, 970, 84 1254. So operation relation opportunities, conferred afforded Wisconsin Penney 311 444, 61 246, 249, 85 267. Those requirements satisfied fairly carried State.' Ibid. applied 613, barges, case, noted (202 597, 717), 'same receiving Nonetheless, 'an 36 427, completed redefinition implicit wrote Ott. Peck formula 'which state' (id., 383, 310), 'inland water transportation' placed footing enterprises.' distinguished 'it appear 'any specific cars' there.' 37 'No vessel know most, them therefore basis. permits precludes 150. Otherwise gives operations.' 384—385, 38 Board, 967, aircraft making stops said, 'We Nebraska's land every none 39 Ott, identify precise complement constantly changing. reach. help Whatever known definite. true, sanction double when business; and, Constitution, exception made puts disadvantage. denominated 'capital tax,' construed equivalent 101 119, 145; Shipbuilding 271 403, 114 A. 257. Property Dredging 122 386, 443, L.R.A. 237. multiplying worth corporation's real nonexempt temporarily State) bears everywhere. 1896; Delaware, L. W.R. 145 96, 157. measure, past effect, amounts 'a added stock.' 198 341, 357, 669, 674, 1077. (3,074) multiplied days (365), 'car days' comes 1,122,010. Appellant's 605,678 latter divided quotient (1,659) represents 1951. example, computes 91,899 Railroad. 7.36% allocates 6,764 days,' share, find, certain diesel locomotives leased review decision. Pac. 56 96; 78 233; 88 1283; 585; 427; generally Developments, 75 Harv.L.Rev. 953, 979—987. discloses Rivers: Memphis, Tennessee, Mt. Vernon, Indiana; Bromley, Kentucky; Baton Rouge Gibson's Landing, Louisiana, Kentucky. landed, well regularly traveled, undoubtedly traced trips revenues accounted necessarily indicate subscriber. permit nonsubscribers, themselves remained liable owner rentals nonsubscriber use. See, e.g., Gwin, White Prince, Henneford, 305 434, 442, 325, 329, 272; D. Adams Mfg. Storen, 304 307, 316, 58 913, 918, 1365. Airlines 301, 955, 1283 (concurring opinion). Morgan Virginia, 328 373, 66 1050, 1058, 90 1317 Hays Mail Steamship How. 596, 254 (1854). Apollon, Wheat. 370, 111 (1824); 599 762, Northern Jackson, Wall. 262, 268, (1869). Louis Wiggins Ferry 423, 192 (1871); Tax Foreign-Held Bonds, 300, 179 (1873); Parham, 471, 302 Gloucester 196, 826, (1885). Tappan Merchants' National Bank, 490, 189 Coe Town Errol, 116 517, 475, 715 (1886); 613 (1891). Louisville Jeffersonville 463, 513. Lackawanna Western 1077 (1905). 41, 150 Professor Beale that, '(t)he dissent seemed sound directed against Nevertheless, Judge equally one. rash lawyer argue today undesirable nevertheless constitutional.' Beale, Conflict Laws, 522. method source concern service produced quite dissents. Safe Deposit Trust 280 83, 59, 62, 180 (1929); Farmers Loan 204, 216, 98, 102, 371 (1930) (overruling Blackstone 189, 277, 439); Baldwin Missouri, 281 586, 436, 439, 1056 (1930). he stated: 'I yet anxiety feel increasing scope cutting believe rights stand see limit sky invalidating happen majority reason undesirable.' 439. Justice, later Stone's First Bank Boston Maine, 284 312, 331, 52 178, 76 313, joined Brandeis Comm'n Utah Aldrich, 316 62 1008, 86 1358, overruled H. P. Hood Sons, Du Mond, 525, 562, 657, 668, 865 (dissenting Treichler Wisconsin, 338 251, 257, 70 94 opinion); Thomas 364 81 229,

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