Document: 539 U.S. 103 FITZGERALD, TREASURER OF IOWAv.RACING ASSOCIATION CENTRAL IOWA ET AL. No. 02-695. Supreme Court of United States. Argued April 29, 2003. Decided June 9, An Iowa law that, among other things, authorized racetracks to operate slot machines and imposed a graduated tax upon racetrack machine adjusted revenues, with top rate that started at 20 percent would automatically rise over time 36 percent, left on riverboat revenues in place. Respondents, dog owners' association, filed state-court suit challenging the ground percent/36 difference violated Equal Protection Clause, U. S. Const., Amdt. 14, § 1. The District upheld statute, but reversed. Held: This has jurisdiction review state court's judgment, which does not rest independently law. opinion says courts should apply same analysis considering either or federal equal protection claims. In such circumstances, this considers decision as resting grounds sufficient support jurisdiction. P. 106. 2. Iowa's differential violate Federal Clause. A law, Iowa's, distinguishes for purposes obtained within State by two enterprises conducting business State, is subject rational-basis review. See Nordlinger v. Hahn, 505 1, 11-12. like most laws, might predominantly serve one general objective, e. g., rescuing from economic distress, while containing subsidiary provisions seek achieve desirable (perhaps even contrary) ends well, thereby producing balances objectives still serves objective when seen whole. And whole, what court it seeks do, namely, advance racetracks' interests. rational legislator believe law's grant authority help economically—even if its simultaneous imposition means less than respondents like—and Constitution grants legislators, courts, broad (within bounds rationality) decide whom they wish their laws how much those provide. Once realizes every provision single must share no difficulty finding necessary rates here. Though harmful racetracks, helpful riverboats, were also facing financial peril. case where facts preclude any plausible inference reason different industry. Cf. Nordlinger, supra, 16. Allegheny Pittsburgh Coal Co. Commission Webster Cty., 488 336, distinguished. Pp. 106-110. 648 N. W. 2d 555, reversed remanded. BREYER, J., delivered unanimous Court. 1 CERTIORARI TO THE SUPREME COURT IOWA. 2 Thomas J. Miller, Attorney General Iowa, argued cause petitioner. With him briefs Julie F. Pottorff, Deputy General, Jeffrey D. Farrell Jean M. Davis, Assistant Attorneys General. 3 Kent L. Jones States amicus curiae urging reversal. brief Solicitor Olson, O'Connor, David English Carmack, Judith A. Hagley. 4 Mark McCormick respondents. Flynn, Edward Mansfield, Stephen C. Krumpe, Lawrence McLellan.* 5 JUSTICE BREYER 6 taxes excursion riverboats maximum percent. Code 99F.11 (2003). provides racetracks. §§ 99F.4A(6), 99F.11. held violates Constitution's 555 (2002). We disagree reverse Court's determination. 7 * Before 1989, permitted only form gambling—parimutuel betting racetracks—the proceeds taxed six rate. 99D.15 (1984). forms gambling, including gambling games though limited bets $5 losses $200 per excursion. 1989 Acts ch. 67, 3, 9(2); 99F.3 (1996). rates, 11; 8 1994, enacted removed $5/$200 bet/loss limits, 1994 1021, 19, machines, 13; 99F.1(9), 99F.4A (1996), 25; Act did alter leaving existing Ibid. 9 group an association owners, brought lawsuit legislation created statute. disagreed and, 4-to-3 vote, majority wrote "differential completely defeats alleged purpose" "to recover distress," there could "be tax," Clause consequently forbids imposition. 2d, 560-562. granted certiorari II 10 Respondents initially claim rests argue state-law holding bars issue. disagree. opinion, after setting forth language both Clauses, "Iowa are `apply claims . claim.'" Id., 558. have previously we shall consider Pennsylvania Muniz, 496 582, 588, n. (1990) (no adequate independent constitutional protections "`identical'"). Michigan Long, 463 1032, 1041-1042 (1983) (jurisdiction exists cases "being used purpose guidance" instead "compel[ling] result"). therefore find III 11 here whether Fourteenth Amendment's mandate "[n]o shall... deny person laws," question distinguish basis of, example, race gender. See, Loving Virginia, 388 (1967); 518 515 It between instate out-of-state businesses. Metropolitan Life Ins. Ward, 470 869 (1985). Neither favor State's long-time residents expense who more recently arrived Hooper Bernalillo County Assessor, 472 612 Rather, enterprises, each State. Where so, review: 12 "[T]he satisfied so long policy classification, legislative classification apparently based rationally may been considered be true governmental decisionmaker, relationship goal attenuated render distinction arbitrary irrational." 11-12 (1992) (citations omitted). 13 id., (rational-basis "is especially deferential context classifications made complex laws"); Allied Stores Ohio, Inc. Bowers, 358 522, 527 (1959) (the requires States, enacting "proceed basis" "resort palpably arbitrary"). 14 found failed meet standard because, view, "frustrated" saw basic distress. 561. person, believed, contrary. 561-562. 15 deny, however, say, helping Railroad Retirement Bd. Fritz, 449 166, 181 (1980) (STEVENS, concurring judgment) (legislation often "product multiple somewhat inconsistent led certain compromises"). After all, designed had nothing more, then (since hurts compared lower rate) taxation all. 16 legislation, can understood do Its economically some degree—even like. At least believe. ought "The `task classifying persons benefits inevitably almost equally strong favored treatment placed sides line,' fact line drawn differently points matter legislative, rather judicial, consideration." 179 (citation ibid. (judicial "at end" once identifies legislature relied); 17-18. 17 That difference, which, concede, peril, Brief 8. 557. These characterizations opposite coin. Each reflects way view matter. aside simply aiding position legislators wanted encourage development river communities promote history, providing incentives remain relocate Gaming Study Committee Report (Sept. 1993), reprinted App. 76-84, 86. Alternatively, protect reliance interests operators, whose revenue All these ones, further suffice uphold rates. Stores, 528; 12. Madden Kentucky, 309 83, 88 (1940) (imposing burden "negative conceivable treatment). 18 336 (1989), holds 21. case, substantial differences level property assessments West Virginia similar properties But later stated, California statute creating taxes, "an obvious critical factual absence indication policies underlying acquisition-value scheme conceivably unequal assessment." S., 14-15. added "Allegheny was rare precluded assessment practice scheme." 16-17, 7. Here, "the facts" "preclud[e]" industry communities. IV 19 conclude "a classification," "rationally true" related justifying "legislative facts," "relationship 11. Consequently judgment contrary reversed, remanded proceedings opinion. So ordered. Notes: Briefs ofamici reversal Missouri et al. Jeremiah (Jay) Nixon, Missouri, James R. Layton, Solicitor, Alana Barragán-Scott, respective jurisdictions follows: William H. Pryor, Jr., Alabama, Michael Cox Michigan, Mike Hatch Minnesota, Moore Mississippi, Patricia Madrid New Mexico, Anabelle Rodríguez Puerto Rico, Larry Long South Dakota, Paul G. Summers Tennessee, Sorrell Vermont; City Bettendorf, Waterman, Dennis Johnson, Robert Johnson III. amici affirmance Dubuque, Barry Lindahl; Polk County, John Sarcone; Institute Justice Clint Bolick, Mellor, Dana Berliner, Clark Neily.

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