Document: 395 U.S. 169 89 S.Ct. 1648 23 L.Ed.2d 182 John L. SULLIVAN, Tax Commissioner of the State Connecticut, et al., Appellants,v.UNITED STATES al. No. 610. Argued April 2, 1969. Decided May 26, F. Michael Ahern for appellants. Harris Weinstein, Washington, D.C., appellees. Mr. Justice STEWART delivered opinion Court. 1 The issue raised by this appeal is whether § 514 Soldiers' and Sailors' Civil Relief Act1 prohibits Connecticut from imposing its sales use taxes on servicemen stationed there who are residents or domiciliaries other States. United States instituted action in federal court against appropriate officials behalf aggrieved servicemen.2 District Court entered a declaratory judgment that statute prevents collection such servicemen,3 Appeals affirmed.4 We noted probable jurisdiction appeal.5 2 imposed Education, Welfare Public Health Act6 typical those enacted vast majority States.7 A tax 3 1/2% levied gross receipts tangible personal property at retail within State.8 Although retailer liable payment tax, he required to pass it purchasers adding original price all items sold.9 same rate 'the storage, consumt ion' purchased any retailer.10 provisions designed reach consumption outside it11—exempt transactions which subject tax.12 And while consumer directly can discharge his liability paying if 'engaged business' therefore collect tax.13 also upon motor vehicles, boats, airplanes non-retailers.14 amount under Act reduced whatever has already been collected 'by state political subdivision thereof.'15 Finally, commands proceeds 'shall be allocated expended public health, welfare education purposes only.'16 By stipulation affidavits Court, parties offered some examples imposition these naval personnel but domiciled elsewhere. Lieutenant Schuman, Nebraska domiciliary, Commander Carroll, Michigan bought used motorboats nonretailers were assessed tax. Schuman paid protest, Carroll refused pay, each claiming exempt Act.17 Shaffer Foster, Pennsylvania Texas respectively, new car; Foster registered car Texas, exacted tax.18 Roloff, whose home Wisconsin, Florida 2% When was with credit 4 As 1942,19 provided 'taxation respect person, (personal)20 property, income, income,' shall not deemed have lost residence domicile acquired 'solely reason being absent (from home) compliance military orders.' Clarifying language added 1944 provide taxation 'personal located present situs State.' Also Congress special subsection automobiles: 'licenses, fees, excises vehicles thereof' they levies their 1962,21 provision applies than serviceman's State, 'regardless where owner may serving' orders.22 5 think clear face proscribed. privilege selling buying long recognized as distinct itself.23 refers 'in of' rather 'on' we an overly strained construction say transaction transferred. Nor does matter taxation' Connecticut. incidence itself presence State. Rather transfer title consideration,24 legal act accomplished without ever entering State.25 Had intended include coverage 514, surely would employed so poorly suited purpose property.' 6 It contended that, even encompass taxes, least property. Not only said fall literally meaning phrase property,' specifically two places 'or thereof.' Moreover, argued, sole jurisdictional basis location Connecticut; yet serviceman contravenes command While agree clearly excluded neither do believe included. consideration legislative history along factors led us conclusion did intend free away host 7 1942 enactment 1962 amendments reveals cover annually recurring property—the familiar ad valorem Thus, reports advert possibility ordered move around country—as increasingly during World War II—might taxed more one 'within calendar year.'26 throughout refer explicitly 'personal-property property.'27 simply irreconcilable proposition thought apply which, like once then when transaction.28 8 absence reference particularly illuminative intent considered light Congress' full awareness relationship interests. Sales prevalent 1942,29 had dealt them years earlier. In 1940 Buck Act,30 'full power levy collect' 'any Federal area,'31 except sale sold instrumentalities through commissaries, ship's stores, like.32 If nothing else, illustrates fully cognizant identified name wanted deal them. unlikely Congress, expressly authorized everywhere reservations post exchanges, later exempted many means imprecise Act. since apparently purchase necessities luxuries life tax-free commissaries,33 reasonably occasional might pay insignificant burden, compared annual consequently deserving exemption.34 9 Section relieve much narrower design 'to prevent multiple property.'35 substantial risk double multi-state exist taxes. Like nearly every provides another State.36 Of course true, held Dameron v. Brodhead, 345 322, 73 721, 97 L.Ed. 1041, though But predominant nonetheless remains highly relevant determining scope exemption, significant generally strong evidence congressional 514. 10 undec ut our proprose appellees, courts below, make section This first appeared addition (2)(b): 11 'When section, * (b) term 'taxation' limited licenses, thereof: Provided, That license, fee, excise person resident paid.' 12 second 'use' appear until (1) following sentence 1962: 13 'Where solely orders, thereof, place domicile, regardless serving orders *.' 14 indications discussed above, most sensible inference drawn registration vehicles. Indeed, interpretation supported structure itself. There no portions set out basic exemption naturally expected mention meant (2)(b) includes excises' fees home. says California Buzard, 382 386, 86 478, 15 436, ordinary revenue-raising 'those essential functioning State's licensing laws application nonresident servicemen.' Id., 395, S.Ct., 484. Buzard automobiles, because covered (2) (b), tax.37 so-called 'license fee' question market value car—a indistinguishable cover.38 thus evident dealing unique form 'tax'—the vehicle fee. Because always classifiable taxes,39 Since license raise taxai transitory evidently decided extend well From found (2)(b). And, view narrow 20 cannot repetition word amendment—described mere clarification existing law40—can statute. amendment merely reflected prior 16 find unpersuasive appellees' contention applied squared declaration clause modified opening words sentence—'(f)or therefore, terms somehow dependent Rather, justify initially apply—annually taxes—on ground property's 17 confirmed explanation gave appellees rely: 18 'The proposed legislation clarify *. law persons service moved should personal-property income presently constituted, primarily affects based 'temporary residence' taxing actually depend domicile. few taken position temporarily acquire taxation, now written affect right assess jurisdiction.'41 19 amendment, clarify' expand manne For reasons hold Accordingly, 21 Reversed. Amendments 1942, 56 Stat. 777, amended, 58 722, 76 768, 50 U.S.C.App. 574. appellants longer dispute bring court. See Department Employment States, 385 355, 358, 87 464, 466, 414; Arlington County, Cir., 326 F.2d 929. presented arguments prepared officers support below. Solicitor General Assistant Attorney charge Division informed however, persuaded arguments, concomitant divergence among representatives before see De Laval Steam Turbine Co. 284 61, 67—68, 52 78, 168; Kornhauser 276 145, 147—151, 48 219, 220, 72 505. 270 F.Supp. 236. amended permit continue servicemen, amounts refunded ultimately sustained. 398 672. 393 1012, 617, 558. Conn.Gen.Stat.Rev. §§ 12—406 12—432a. J. Hellerstein, Local Taxation Cases Materials (3d ed. 1969). 35 filed briefs case 12—408(1). imposes transferring occupancy room rooms hotel lodging house.' 12—408(2). 12—411(1). See, e.g., Stetson Sullivan, 152 Conn. 649, 652—653, 211 A.2d 685, 686; Avco Mfg. Corp. Connelly, 145 161, 170 171, 140 479, 484; Light & Power Walsh, 134 295, 299—300, 57 128, 130—131, A.L.R.2d 453. 12—413(1). 12—411(2), (3). 12—431. 12—430(5). 12—432. joined party plaintiff seeking represent class former whom threatened complaint dismissed him lack jurisdiction, grounds requisite alleged controversy Eleventh Amendment forbids suit private individual courts. 236, 246—247. Foster's situation entirely clear. His affidavit states Motor Vehicles dealer's invoice latter seems correct, retailer. Taxas told order register collector's receipt identify statutes appears likely latter. Tex.Rev.Civ.Stat., Art. 6.01, apl ies amount, out-of-state Texas. 777. 'personal' interpolated amendment. 722. 768. 22 forth 574, reads entirety follows: '(1) Territory, possession, foregoing, Columbia, therefrom in, become of, while, being, absent. domiciled, compensation services performed within, sources subdivision, District, district. Where orders: contained Columbia arising trade business, otherwise jurisdiction. effective September 8, 1939, require crediting refunding October 6, 1942. '(2) (a) property' intangible (including vehicles), Thatt N. Jacoby, Retail 3—4 (1938). n. 28, infra. 24 defines 'sale' '(a)ny consideration.' 407(2)(a). 172, 484—485. possession transferred seller retains security. 12—407(2)(f). 25 42a—2—401(3). 26 S.Rep.No. 1558, 77th Cong., 2d Sess., (1942); H.R.Rep.No. 2198, (1942). 27 959, 78th (1944). 1514, talked about several States.' supra, 11; 6. At time Amendment, continued describe 'imposed serviceman.' 2182, 87th (1962); 2126, (1962), U.S.Code Cong. Admin.News 1962, p. 2841. 28 frequently different kind E.g., Monamotor Oil Johnson, 292 86, 93, 54 575, 578, 78 1141; Bowman Continental Co., 256 642, 41 606, 608, 65 1139. Supreme described very here question, as, fact is, nature using, storing consuming 307, 134. distinction sometimes formal actual, cf. Henneford Silas Mason 300 577, 582, 586, 524, 526, 528, 81 814. long-time general acceptance supports on, of,' thereby further buttressed close interconnection Interstate Commerce, 565, 89th 1st 607—620 (1965). complement integral part single broad pattern grouped 29 1938, half adopted 609. 30 1059, U.S.C. 105—110. 31 105(a) states: 'No relieved accounting duly constituted authority therein, having jurisdictiont o use, levied, occurred whole area; area extent effect area.' 32 107 '(a) sections 105 106 authorize instrumentality sale, purchase, thereof purchaser. '(b) purchaser purchases permitted voluntary unincorporated organizations branch Armed Forces regulations promulgated departmental Secretary over branch.' 33 following: '11. Most day-to-day food, clothing, toilet articles items, made commissaries operated armed installations. '12. exchanges installations Act.' 34 Conversely, administrative burden shoulder potentially far greater attributable Whereas involves officials, usually requires participation well. difficulties retailers encounter thousands customers properly considerably envisioned alone. restated reports: into 27, 2. 1. 36 Prentice-Hall Service, All Unit, 92,963. 37 Snapp Neal, 397, 398, 485, 486, 445: 'We reverse holding today failure 'license, excise' entitles exact qualifying excises'; Mississippi acknowledged, exaction.' 38 emphasized 'as substitute local automobiles.' U.S., 9, California's involved case. 39 394, 483, various methods impose 40 'This bill amends immunity results contrary act. More specifically, (Emphasis supplied.) 1,

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