Document: 520 U.S. 821117 S.Ct. 1776138 L.Ed.2d 34 ARKANSAS, Petitioner,v.FARM CREDIT SERVICES OF CENTRAL ARKANSAS et al. No. 95-1918. Supreme Court of the United States Argued April 21, 1997. Decided June 2, Syllabus * The Tax Injunction Act (Act) restricts federal district courts' power to prevent collection or enforcement state taxes, but makes an exception that jurisdictional bar where no plain, speedy, efficient state-court remedy may be had. This has established another sues protect itself its instrumentalities from taxation. Department Employment v. States, 385 355, 358, 87 464, 466-467, 17 414. Production Credit Associations (PCA's) are federally chartered corporate financial institutions organized by farmers primarily make loans farmers. During relevant time period, law exempted PCA's taxes on their notes, debentures, and other obligations. Respondent PCA's, claiming they also immune Arkansas sales income sought a declaratory judgment injunction prohibiting State levying such them. Seeking overcome Act's bar, contended that, as not subject provisions any more than itself. District granted them summary judgment, Appeals affirmed. Held: included within judicial virtue designation so sue in court for against taxation without co-plaintiff. Pp. ____-____. (a) Act, which been interpreted applied "jurisdictional rule'' "broad barrier,'' Moe Confederated Salish Kootenai Tribes, 425 463, 470, 96 1634, 1640, 48 96, was enacted confine intervention government. balance is well served when several define elaborate own laws through courts administrative processes undue interference judiciary. A State's tax basic exist. Given principle statutory language enforced according terms, must guard interpretations might defeat purpose text. Where Government party, side considered. necessity respect National Government's authority underlies rule does constrain (b) When mere fact party challenging interests closely related those Federal enough, itself, bar. Moe, supra, at 471-472, S.Ct., 1640-1641. An instrumentality can enjoy benefits immunities conferred explicit statutes further inference it all rights privileges Government. appeals have adopted different standards deciding whether enjoin Under tests, would exempt restrictions. joined co-plaintiff opposes exercise jurisdiction. Regardless agency body with substantial regulatory brings suit name, cf. NLRB Nash-Finch Co., 404 138, 92 373, 30 328, entities description. Despite formal undoubted despite entitlement accorded mandate, do analogous Labor Relations Board departments agencies. Their business making commercial loans, stock owned private entities. coterminous most interests. holding restriction jurisdiction furthers sacrificing 76 F.3d 961 (C.A. 8 1996), reversed. KENNEDY, J., delivered opinion unanimous Court. Martha Grissom Hunt, Little Rock, AR, petitioner. Lawrence G. Wallace, Washington, DC, amicus curiae, special leave Richard A. Hanson, Chicago, IL, respondents. Justice KENNEDY 1 28 U.S.C. §1341, taxes. It states: "The shall enjoin, suspend restrain assessment, levy under speedy had State.'' statute, face, yields save wanting, least one our cases: statute if 414 (1966). present case explores limits this exception. We decide here called Associations, corporations law, themselves. hold action dismissed, and, result, we reach merits dispute. 2 Farm Administration 1971, 85 Stat. 583, amended, 12 §2001 seq. PCA institution 10 designed large part §§2071, 2075. differing status times, depending shares stock. See, e.g., 1933, 267. In period (when hands) exempted, "notes, obligations.'' §2077. 3 Four respondents here, brought Eastern exemption going beyond express They assert immunity only described quoted seek PCA's' motion divided panel Eighth Circuit (1996). 4 Entitlement underlying substantive issue, were it. however, initial obstacle, terms relief absent some first trial now point correct: because charters says so. §§2071(b)(7), 2077. argument about what follows designation, incorrect. Instrumentalities alone, same right avoid prohibitions Act. 5 observation proper respecting consideration threshold question. Although addressed meaning operation whole question seemed disappear, though goes heart authority. Neither advised, neither Appeals, majority dissent, mentions While applicability raised petition certiorari, brief support petition, attention point. granting asked parties address, addition merits, should dismissed lack subject-matter light 6 barrier.'' Tribes Flathead Reservation, (1976). dismissing filed challenge held "deprived hear [the] challenges.'' California Grace Brethren Church, 457 393, 396, 102 2498, 2501, 73 93 (1982). Further, found even defendant argued favor court's Id., 417, n. 38, 2513, 38. explaining violative said foremost vehicle ""to limit drastically interfere important local concern taxes.''' 408-409, 2508 (quoting Rosewell LaSalle Bank, 450 503, 522, 101 1221, 1233-1234, 67 464 (1981)). These statements underscore fundamental importance restrictions imposed proceed address. II 7 States' interest integrity particular moment questions constitutional system, concurrent power. "That vital importance; retained States; abridged grant similar government Union; concurrently exercised two governments: truths never denied.'' McCulloch Maryland, Wheat. 316, 425, L.Ed. 579 (1819). Wisconsin J.C. Penney 311 435, 444, 61 246, 249-250, 267 (1940); Rosewell, 1233-1234. Enactment 1937 reflects congressional government, prominent after Court's ruling Ex parte Young, 209 123, 441, 52 714 (1908), Eleventh Amendment cases individual officers alleged acted violation law. See 28, 1234, 28; Perez Ledesma, 401 82, 104-115, 91 674, 686-692, 27 701 (1971) (Brennan, concurring dissenting part). systemic balance, given 9 course, system sovereign own. prerogatives settled constraint allowing determine doubt reason why little discussion States. There indicated consistent understanding bound legislative remedial unless intent bind express. U.S., 6, 466, (citing Livingston, 179 F.Supp. 9, (E.D.S.C.1959) (three-judge Court, aff'd, 364 281, 80 1611, 1719 (1960)); Arlington County, 326 F.2d 929, 931 (C.A.4 1964); Bureau Revenue N. M., 291 677, 679 (C.A.10 1961)). Dollar Savings Bank 19 Wall. 227, 239, 22 (1873). concluded, "in accord unbroken line authority, convincing evidence purpose, §1341 act upon suits unconstitutional exactions.'' 466-467 (footnotes omitted). cited Employment, either sole plaintiff Red Cross arguing taxation, did deprive order relief. before considered fall reasoned barred Indian tribes lawfulness constitutionality certain designations assumed asserted aligned Reserving precise significance congruence sufficient give went find second sweeping tribe party. 472, 1640-1641 §1362 (1976 ed.)). instructive here. As say mission defined controlled conclude insufficient justify 11 True, consequences flow decision designate formed pursuant "an States.'' §2071(b)(7). §2077 permitted consequence instrumentality. statutes, Respondents attempt counter 328 (1971), applicable supports cause. involved Anti-Injunction proceedings courts. §2283. provides: "A stay except expressly authorized Congress, necessary aid jurisdiction, effectuate judgments.'' Just inapplicable parallel prevails Leiter Minerals, Inc. 352 220, 225-226, 77 287, 290-291, (1957) (The §2283 Government.) (NLRB) came did. ruling, observed NLRB's "pre-empts field.'' Nash-Finch, 144, 377; see id., 147, 379 ("The exclusiveness domain clear . ''). powers far NLRB. will discussed detail below, resemble distinguished 146, 378. 13 over restrictive approach, there Commission, 481 963, 975 (C.A.1 1973) ("It reasonable, prerequisite by-passing normal litigation channels, [the instrumentalities] persuade Attorney General join claim''); Housing Authority Seattle Dept. Revenue, 629 1307, 1311 (C.A.9 1980) (agreeing First Commission "that joinder [with co-plaintiff] restrictions'' Act). After modified bright-line produce test: " [E]ach examined governmental role wishes Congress expressed legislation.'' Reserve Boston Commissioner Corporations Taxation Mass., 499 60, 64 (1974). banks, noted, corporations, rather "plainly predominantly fiscal arms government'' "indistinguishable sovereign.'' 62. pointed giving bank "unrestricted access courts,'' 63 (referring §632); System's unusual position "outside executive chain command,'' F.2d, 63. New England Old Colony Clark, 986 600, 602-603 1993) (describing standard "flexible test''). 14 tests described, indeed need inquire Nash-Finch-to effect broad name States-is Whatever suit, serve specific economic purposes long associated various Other examples include Atlantic Pacific Railroad Company (chartered 1866 construct maintain railroad telegraph Springfield, Missouri, Ocean, Smith Reeves, 178 436, 436-437, 20 919, 919-920, 44 1140 (1900)); Rural Telephone (7 §941); Enrichment Corporation (42 §2279a (1994 ed.), repealed effective date privatization, Pub.L. 104-134, 110 1321). Indeed, treated corporation citizen, arm 446-447, 923. 15 agencies suffices us entitle entity 16 grounded administer affairs concede, "speedy, remedy'' court. 18 ordered. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Timber & Lumber 200 321, 337, 26 282, 50 499.

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