Document: 351 U.S. 253 76 S.Ct. 814 100 L.Ed. 1151 OFFUTT HOUSING COMPANY, a Corporation, Petitioner,v.COUNTY OF SARPY and Robert M. Eby, Treasurer of the County Sarpy, NEBRASKA. No. 404. Argued April 26, 30, 1956. Decided May 28, Mr. L. Stern, Chicago, Ill., for petitioner. Messrs. Dixon G. Adams Orville Entenman, Papillion Neb., respondents. Justice FRANKFURTER delivered opinion Court. 1 This suit was brought by petitioner against respondent county its treasurer declaratory judgment that not required to pay certain state 'personal property' taxes an injunction levy such on property. The controlling facts are in dispute. Petitioner is Nebraska corporation organized primarily provide housing rent or sale. On January 18, 1951, entered into contract with Secretary Air Force lease 63 acres land build project Offutt Base accordance specifications submitted Department be approved Federal Housing Commissioner. 2 75 years at rental price $100 per year. It provided 'buildings improvements erected Lessee, constituting aforesaid project, shall become, as completed, real estate part leased land, public buildings United States, Lessee * *' further 'upon expiration this lease, earlier termination, all made upon premises remain property Government without compensation *.' units military civilian personnel were designated Commanding Officer, terms specified maximum Administration Force. fire police protection reimbursable basis. had right permit utilities extend water, gas, sewer, telephone, electric power lines onto order those services. agreed insure own expense, inspection premises, comply regulations prescribed Officer requirements safety security purposes, consistent use housing. could assign written approval 3 preferred stock held Commissioner which, acting under Title VIII National Act (the Wherry Military Act), Stat. 570, 12 U.S.C.A. § 1748 et seq., insured mortgage after receiving certificate from necessary adequate personnel. After singing insurance mortgage, construction proceeded forthwith. filed no tax return, although Attorney General ruled interest including used therein, taxable property.' June 23, 1952, assessor Sarpy schedule behalf petitioner, listing total $825,685, itemized 'Furniture & Fixtures—Tools Equipment'; 'Household Appliances'; 'Improvements Leased Land.' never paid resulting taxes, threatened issue usual distress warrant collect suit. 4 District Court that, since title them. Supreme reversed, holding Congress given petitioner's Neb.Rev.Stat. Reissue 1950, 77—1209, fact matter law owner sought taxed. 160 Neb. 320, 70 N.W.2d 382. Petitioner's attack raises serious questions state-federal relations respect taxation private developments Government-owned therefore we granted certiorari. 350 893, 153. 5 another long series cases dealing States hands claim exempt status deriving immunity taxation. falls within scope Article I, 8, cl. 17 Constitution, providing have 6 'To exercise exclusive Legislation Cases whatsoever, over (of Columbia) like Authority Places purchased Consent Legislature State which Same be, Erection Forts, Magazines, Arsenals, dock-Yards, other needful Buildings 7 course provision cannot said run smooth. 'exclusive Legislation' has been prohibit located base acquired pursuant art. 17. Surplus Trading Co. v. Cook, 281 647, 50 455, 74 1091. hand, may acquire interests location permission Congress, see e.g., Buck Act, 54 1059, §§ 104—110 (permitting sales, use, income taxes), also when divests itself proprietary area levied. S.R.A., Inc., Minnesota, 327 558, 66 749, 90 851; Baltimore Shipbuilding Dry Dock Co., City Baltimore, 195 375, 25 50, 49 242. 8 line least resistance analysis our immediate problem ascertain whether consent type here asserted. applicable congressional statutes Leasing 1947 1949 (adding Act). provides: 9 'That whenever War Navy deem it advantageous he authorized personal control his surplus needs meaning October 3, 1944 (58 765), time lessee lessees conditions will promote national defense interest. Each period exceeding five unless concerned determine longer contain permitting revoke any time, omission In even each revocable during emergency declared President. authority herein apply oil, mineral, phosphate lands. 10 'Sec. 6. lessee's interest, created provisions subject local Any if extent governments event renegotiated.' 61 774—776, 626s—3, 626s—6. Two later, provided: 11 'Whenever Army, Navy, determines desirable August 5, (61 774), effectuate purposes title, best serve regard limitations imposed term duration vested President apply. 576. These two Acts interlock must read together. reasonable relationship between them thus delineated Appeals Third Circuit: 13 'In view Act) merely permits leasing already covered general authorization accomplished restrictions elimination these would Act. Other language Section subjecting taxation, leases both Acts. 14 'We overlooked argument narrower based legislative history indicating primary purpose standby plants. But extends non-surplus Defense except lands (an exception unnecessary applied only plants). An additional indication encompasses generally found repeals prior generally, 27 321. Senate Report expresses reporting committee's understanding statute being 'entirely superseded'. Sen.Rep.No. 626, 1947, 80th Cong.1st Sess. (p. 3).' Fort Dix Apartments Corp. Borough Wrightstown, 225 F.2d 473, 475—476. 15 We agree this. To sure, does refer specifically Congress. does, however, govern lessees' virtue indicates concern about loss revenue desire prevent unfairness toward competitors might otherwise escape While latter consideration necessarily where involved, former equally relevant purpose. 16 do say admissible overriding comprehensive obviously valuable explicit unambiguous enactment. heretofore so regarded it, 242, nor constrained reason treat manner construing differently power. one seen fit express unequivocally. thereby requires judiciary specific problem. end resort whatever aids interpretation legislation entirety provide. Charged function, concluded more persuasive statute, however flickering feeble light afforded extracting meaning, permitted interests, projects areas federal Legislation.' hold relinquished areas. power, involved present case. argues tax, measured full value improvements, 'lessee's interest' but owned Government. Labeling 'owner' foreclose us ascertaining nature solve See Millinery Center Building Commissioner, 456, 493. years; estimated useful life 35 years. enjoyment entire worth petitioner's. 18 argues, substantial rents determined occupants, voting services, took financial risks insuring project. compares position 'managing agent.' characterization attempt phrase make abstract legal category. contention certainly surprise interested having enterprise conduct projects. 'title,' paper and, while retained controls described regulatory mechanism ordinary operation unbridled economic forces, mean should partially allocated it. If venture assessed company financing State, fix circumstances case, then, attributable interest.1 19 applicances furniture invalid because owns items, bought Government, 'made 1947).' Here again using label, 'owner,' descriptive answer question. appears record supply appliances tenants they their replacements left lease. appliances, just buildings, agreement keeping mind 6, interpret section treating items alike.2 20 For reasons affirmed. 21 Affirmed. 22 DOUGLAS, whom REED, BURTON, HARLAN concur, dissenting. 23 There why I dissent 24 First. makes clear encourage Armed Forces clean, adequate, inexpensive H.R.Rep.No.854, 81st Cong., 1st Sess., pp. 2, 4; S.Rep.No.410, 4—5. nothing indicate departed established practice, 1091, consented enclaves. Taxation authorities sure way increasing cost hampering program. intended, expect plain revealing finds relies adumbration reasoning elaborate implication. Yet 'doctrine sovereign embedded constitutional practice official agencies mandate.' Kern-Limerick, Scurlock, 347 110, 122, 403, 411, 98 546. intertwined intertwining very limited. 805 authorizes Secretaries respects contained Nothing balance incorporated. strain beyond normal demands pull 807 deals allows suppose allowed instance, waiver limited, general. usurp function lawmakers contrary. 26 Second. Even rebel application now subjects placed Its justification apparently low annual charged lessee, length improvements. 'enjoyment worth' lessee's, says nominal. include property.1 formalism misses point. Government's stake bare title. vast important lessee. prescribes rentals. what persons occupy living quarters. assumes most mortgagees. provides protection, sewerage water service, access roads. mere lessor who, property, managed great decisions management is, indeed, managing agent. 28 States. That reservation challenged colorable. supra, 116—123, 407, protect large low-cost enclaves—a defeated today. For, once imposed, rentals servicemen rise, pays bill. Ironically, rise benefits government than transients receive. windfall governmental services protective taxed.2 before unclear less period. excluded represents ownership record, remedy, any, courts, here. clearly parties furniture—valued $205 1952 valuation $825,685. minor leave seek redress significantly different buildings. effort Committee Services Hearings, S. 1198, 27—32. proposal rejected Committee. Under amended, U.S.C. 104—110, residents reservations income, gasoline taxes.

Category: 7