Document: 329 U.S. 69 67 S.Ct. 156 91 L.Ed. 80 RICHFIELD OIL CORPORATIONv.STATE BOARD OF EQUALIZATION. No. 46. Argued Oct. 24, 1946. Decided Nov. 25, Action by Richfield Oil Corporation against State Board of Equalization to recover, with interest, a sum paid under protest as retail sales tax and interest thereon. A judgment was entered the California Supreme Court, 27 Cal.2d 150, 163 P.2d 1, reversing for plaintiff after had first been affirmed, 155 appeals. Appeal from Court California. [Syllabus pages 69-71 intentionally omitted] Mr. Norman S. Sterry, Los Angeles, Cal., appellant. John L. Nourse, appellee. Justice DOUGLAS delivered opinion Court. 1 This case is here on appeal which sustained claim that it repugnant Article I, Section 10, Clause 2 Constitution United States. Judicial Code § 237, 28 U.S.C. §§ 344(a) 861a, U.S.C.A. 344(a), 861a. Appellant engaged in producing selling oil products It into contract New Zealand government sale oil. The price f.o.b. payment London. Delivery 'to order Naval Secretary, Navy Office, Wellington, N.Z. tank steamer R.F.A. Nucula at California.' be consigned Naval-Officer-In-Charge, Auckland, Zealand. carried pipe line its refinery storage tanks harbor where appeared receive When docked ready oil, appellant pumped vessel. Customary shipping documents were given master, including bill lading designated shipper naval officer Payment made transported no portion being used or consumed filed Collector Customs shipper's export declaration. did not collect, nor attempt do so, any purchaser. Appellee assessed measured gross receipts transaction. protest, refund asserting levy violated provisions States this suit brought obtain refund. one justice dissenting, allowed recovery ground. 1. After rehearing reversed position held constitutional, two justices dissenting. 3 I. We are met outset question whether 'final judgment' within meaning 344(a). tried pleadings stipulated facts, jury having waived. trial court found ordered 'be same hereby reversed.' argument law has without directions, there new trial; might amend complaint produce other evidence; if had, different findings fact made. See Erlin v. National Union Fire Ins. Co., 7 547, 61 756. 4 designation state practice controlling. Department Banking, Nebraska Pink, 317 264, 268, 63 233, 235, 87 254. can said 'there nothing more decided' (Clark Williard, 292 112, 118, 54 615, 618, 78 1160), 'an effective determination litigation'. Market Street R. Co. Railroad Commission, 324 548, 551, 65 770, 773, 89 1171; Radio Station W.O.W. Johnson, 326 120, 123, 124, 1475, 1477, 1478, 2092. That will resolved only an examination entire record supra) but, necessary, resort local determine what effect rules practice. Brady Terminal Ass'n St. Louis, 302 688, 58 82 531; Southern 319 777, 1028, 1723. Boskey, Finality Judgments Federal Code, 43 Col.L.Rev. 1002, 1005. 5 Retail Sales Tax Act, 23, 31, prescribes sole remedy challenging tax. procedure prescribed tax, filing sets forth 'the specific grounds upon founded,' Cal.Stats.1941, pp. 1328, 1329, and, denie , institution ninety days 'on set such claim.' Cal.Stats.1939, 2184, 2185. thus frames restricts issues litigation. Although direction, decision controls disposition case. Estate Baird, 193 Cal. 225, 223 P. 974; Bank America Nat. Trust Savings Superior 20 697, 128 357. Since facts have stipulated1 passed control litigation, we take decided. jurisdictional objection merit. Gulf Refining Louisiana States, 269 125, 136, 46 52, 53, 70 195. 6 II. turn then merits. provides 'No shall Consent Congress, lay Imposts Duties Imports Exports, except may absolutely necessary executing it's inspection Laws: net Produce all Imposts, laid Use Treasury States; Laws subject Revision Controul Congress.' provision bar because delivery resulted passage title occurred prior commencement exportation. suggested, appellee concedes, result follow common carrier; 'for would placed hands instrumentality whose purpose goods, indelibly characterizing process part exportation.' page 153, 3. court, reaching conclusion rested our recent decisions (particularly McGoldrick Berwind-White Coal Mining 309 33, 60 388, 84 565, A.L.R. 876; Indiana Wood Preserving Corporation, 313 62, 885, 85 1188; International Harvester Treasury, 322 340, 64 1030, 88 1313) certain taxes they Commerce Clause. 8, Cl. concluded interstate transaction, saw greater limitation power 2, than exist 8 pursue inquiry validity For view whatever inquiry, unconstitutional 2. 9 constitutional provisions, while related, coterminous. To sure, times both Import-Export Brown Maryland, 12 Wheat. 419, 678; Crew-Levick Commonwealth Pennsylvania, 245 292, 38 126, 62 295. But important differences between two. invalidity derives prohibition taxation import export; turns nowise article was, ever been, export. Hooven & Allison Evatt, 652, 665, 666, 870, 877, 878, 1252 cases cited. Moreover, cast, terms taxes, but Congress regulate commerce. well established even absence action Congress. Pacific Arizona, 325 761, 1515, 1915; Morgan Virginia, 328 373, 66 1050. scope determined effort maintain area trade free interference time make commerce pay way. As recently stated supra, 48, 393, 876, fashioned reconcile competing demands, states unduly impeded action, support curtailed.' accommodation upholding designed bear fair share cost receives benefits (see e.g. Western Live Stock Bureau Revenue, 303 250, 254, 255, 546, 549, 823, 115 944, cited; invalidating those discriminate commerce, impose privilege doing it, place undue burden it. Adams Mfg. Storen, 304 307, 913, 1365, 117 429; Gwin, White Prince, Inc. Henneford, 305 434, 59 325, 83 272; Best Maxwell, 311 454, 334, 275; Nippert Richmond, 327 416, 586, 162 844. 10 seems clear cannot write qualifications prohibits every laying 'any' imports exports consent Only exception created—'except Laws'. single suggests qualification absolute intended. entail substantial revision substitute 'any discriminatory' see, exportation somewhat entwined clauses, though complementary, serve ends. And limitations read other. 11 however, history shows prevent discriminatory preclude general applicable alike goods. Support defended Convention2 later debates3 ground protected inland levies coastal through expo ts. Yet function phase larger design. considered connection 9, 5, Duty Articles exported State.'4 withhold exports,5 deprive then, seems, require proceeds federal treasury. proposal prohibit 'from taxing their harbours.'6 suggestion followed. language adopted supported Madison 'as preventing imposts'.7 qualified interpretation urged us therefore infer does comport standards expounding Constitution. Chief Marshall Sturges Crowninshield, 122, 202, 529, 'it dangerous extreme extrinsic circumstances, words instrument expressly provide, exempted operation.' For, Taney Holmes Jennison, 14 Pet. 540, 570, 571, 579: 'In word must due force, appropriate meaning; evident whole instrument, unnecessarily used, needlessly added. many discussions taken construction Constitution, proved correctness proposition; shown high talent, caution, foresight illustrious men who framed Every appears weighed utmost deliberation, force fully understood. No therefore, rejected superfluous unmeaning;' cannot, containing implied qualification. 13 questions remain prohibited impost requirement foreign involved (Woodruff Parham, Wall. 19 382) met, concededly sold shipment abroad. accrued presents problem. There few illuminate In Houston, 114 622, 1091, 29 257, taxed coal sale. some when export, saying, 629, 630, 1095, 257: 15 'When intent exportation, there, Orleans. duty either levied goods condition, reason or, least, direct hich intended Whether last exports, determine. certainly, property alike, construed falling should happen afterwards.' 16 Coe Town Errol, 116 517, 475, 715, before Logs, cut Hampshire, river transportation Maine. Hampshire's non-discriminatory them sustained. What concerning deem correct principle governing exports: '* * cease mass state, subject, such, jurisdiction, usual way, until shipped, carrier transportation, another started continuous route journey.' Page 527 U.S., 478 S.Ct., 715. 17 followed involving which, noted, 'Articles state.' Turpin Burgess, 504, 835, 988, excise manufactured tobacco. left factory. said, 507, 837, 'They course exportation; never exported; depend altogether manufacturer.' reached Cornell Coyne, 192 418, 24 383, 48 manufacturing filled cheese exports. 'The true way cast articles, mean articles relieved ordinary burdens rest similarly situated. exemption attaches 427 384 504. 18 marked Thus stamp since, equivalent included lading. Fairbank 181 283, 21 648, 45 862. charter parties exclusively carriage cargo Hvoslef, 237 17, 35 459, 464, 813, Ann.Cas.1916A, 286, 'in substance exports.' likewise policies insuring maritime risks. Thames Mersey Marine 19, 496, 821, Ann.Cas. 1915D, 1087. stated, 27, 499, Ann.Cas.1915D, 1087: rise rates insurance immediately affects exporting increase freight rates, cargoes during transit ports much parties, bills lading, themselves. Such deal preliminaries, distinct separable subjects; falls process.' Closer point Spalding Bros. Edwards, 262 66, 485, 865. o baseball bats balls manufacturer. Venezuela firm York commission house buy quantity account. manufacturer instructing deliver packages Venezuela. issued. issue, 68, 486, 865, 'whether step exportation'. pointed out exempt manufacture' 'after loaded vessel issued.' 'export begun.' noting carrier's hands, 69, 70, 865: very act incurred transaction domestic, committed across sea, direction port expected accomplished start port. further acts done get sea matter so long regular steps contemplated result.' 22 circumstance tile change mind retain own use dismissed statement 'Theoretical possibilities account.' 486 put point, liberal protection hitherto received'. 23 summarized Willcuts Bunn, 282 216, 228, 51 128, 75 304, 71 1260, construing give 'immunity transactions embraced process. safeguard maintained.' gave immunity seized stating rule like Mississippi, 280 390, 50 169, 74 relied indicating purchaser sufficient. arose Mississippi upheld distributor wholesaler purchased gasoline took 395, 170, although business indicated likely destination liked, sending wishes.' held, moving added, 396, 'Dramatic great universal stream grain purchase market elsewhere, affect legal showing manifest certainty exhibiting policy absent here.' 25 headed started8 normally best evidenced purpose. degree involved. present excellent illustration. furnished ship carry hold vendor's located dock. movement true, observed, waters bound move vessel, equivocal created probability diverted domestic use. clearer journey point. means unimportant plain. 26 reviewed occur 'export' 445, 506, 836, 988), follows here. argued, retailers 'For tangible personal retail.' Cal.Stats.1935, p. 1253. authorized collect consumers. Cal.Stats.1933, 2602. transfer possession manner whatsoever, property, consideration'. 1256. conducting sales; consumer become 152, construction, law, binding us. determinative deprives taxpayer right. issue characterization operation effect. Louis Southwestern Arkansas, 235 350, 362, 99, 265; Kansas City, Ft. M.R. Botkin, Secretary Kansas, 240 227, 231, 36 261, 262, 617. concedes itself taxed. perceive, difference labeled conceded 'resulted completion sale, taxable incident'. incident accrual 30 could imports, imports. 444, 678: 31 'All article, imported itself. occupations generally, b t employ individual, his business. lawyer, physician, mechanic, charge he deals, thing person. right do, extends So, occupation importer is, manner, importation. add consumer, himself, constitution.' 32 reasoning applied 33 forbidden State. diversity language, none perceivable prohibited. possessed Now, suppose exporter license, think proper impose; permitted shield just censure evade prohibitions constitution expose person, legislature occupations?' 34 contained clearly involves mere specifically supra. (237 13, 463, 286) equally here: 'If meant that, obstructions readily up legislation nominally conforming restriction, overriding it.' see Anglo-Chilean Nitrate Alabama, 288 218, 53 77 710. conclude exacted unconstitutional. Reversed. 37 MURPHY consideration BLACK, 39 California, extracted soil. Its bought transport states, raises large proportion revenue generally sales.1 holds application 'tax exports' violates I agree. 40 precedent today's heavily relies, 'with regard fix begin. elsewhere points near side, necessity fixing definitely remembered seem arbitrary.' announced 427, 384, int nded relieve rests situated.' rather began makes encroachment out, Government's also narrowed. holding serious because, unlike consequences invalid Clause, are, minor exception, permanent, unqualified. ruling neither permit proscribed. classify results creating island profitable nation. grants businesses governmental protections taxes; throws unfair others. assume framers looked favor consequences, should, classifying render unconstitutional, most careful factual scrutiny. invalidate unless satisfied beyond doubt squarely wholly exemption. 41 economic probably about flow severance Richfield. three types reflected increased Richfield's one, suppose, saying event began. actually begun been. exporter's agent broker. neither. negotiated completed purely intrastate properly lost pre-exportation status intend 'title pass' purchaser's ship. formal 'passage title' adequate criterion measuring state's state. Private decide, far interests concerned, 'pass.' surely required forbear precedes particular moment arbitrarily selected conceptual title. Nor need exercise for. delivery, perhaps agreement sell, happened border imaginary actual justify concluding Constitutional interpretations inroads Government fine concepts relation beginning 42 Concededly, imposition 'imposts duties' 'exports.' define not. known primarily forbidd n insistence feared seaboard exact tribute interior thereafter en destinations. bestow bounty blanket production, processing, purchase, shipped broad encouraging making these preliminary free. motivation plainly writers condemned. came severance, completed. disguised product soil manufacture imposed solely destination. defray expenses uniform businesses, Richfield, enjoyed California's natural resources, labor people, services government. True, extent imposing burden, anywhere consumer. evolution intention subsidize purchasers taxation. 44 believe let destined abroad escape uniformly resources depleted powerless enforce depleter sells customers immediate ultimate countries. persuasive evidence produced indicate wrote thought handicapped sufficiently cogent reasons advanced disarranges, confuses, handicaps states. valid stipulation parties. McGuire 353, 915; Webster Webster, 216 522; Cal.Juris. 826. available second otherwise limited, Nathan Dierssen, 146 63, 79 739; Crenshaw Smith, Cal.App.2d 168 752; Le Barron City Harvard, 129 Neb. 460, N.W. 26, 100 775, controlling relieves party stipulation. First San Pedro Stansbury, 118 Cal.App. 80, 13. Relief granted sound discretion changed, fraud, mistake fact, special rendering unjust Sacre Chalupnik, 188 386, 205 449; Back Farnsworth, 212, 295; Sinnock Young, 130, 142 85; 161 1163. intimation briefs excusable neglect, relief. Indeed accept accurate complete. Farrand, Records Convention (1911), 359—362, 442. particularly Madison's statement, Eilliot's Debates, 2d Ed., 483. Federalist 42. op cit., note 305—308, 358 363, 441—442. consenus expressed Gerry—that trusted power. ruin Country. exercised partially, raising depressing 307. Or Sherman, 'A shipwreck whole.' Id., 308. suggested Langdon. op. 361. Carson Petroleum Vial, 279 95, 49 73 626. 1945 total $676,828,000. collected $242,757,000 Finances 1945, Finances: Dept. Commerce, Census (1946) 33.

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