Document: 531 U.S. 316121 S.Ct. 941148 L.Ed.2d 830 NOTICE: This opinion is subject to formal revision before publication in the preliminary print of United States Reports. Readers are requested notify Reporter Decisions, Supreme Court States, Washington, D. C. 20543, any typographical or other errors, order that corrections may be made goes press.DIRECTOR OF REVENUE MISSOURI, PETITIONERv.CoBANK ACB, as successor NATIONAL BANK FOR COOPERATIVES No. 99-1792. SUPREME COURT THE UNITED STATES Argued November 28, 2000 Decided February 20, 2001 Syllabus The Farm Credit Act 1933 created various lending institutions within System-including banks for cooperatives-and addressed their taxation. Each these designated a federally chartered instrumentality States. E.g., 12 U.S.C. 2121. Respondent CoBank ACB all rights and obligations bank cooperatives. In 1996, filed amended returns on behalf bank, requesting an exemption from Missouri corporate income taxes refunds it paid 1991 through 1994. asserted Supremacy Clause accords federal instrumentalities immunity state taxation unless Congress has expressly waived this immunity, that, because Act's current version does not do so, cooperatives exempt Missouri's tax. State denied request, but reversed, stating silent such banks' tax cannot said have consented and, thus, exempt. Held: Banks Pp. 5-9. (a) provided subjected except when Unites held stock banks. As soon governmental investment was repaid (as by 1968), had pay no longer applied. did change rule 1971. Nor 1985 amendments-which discontinued Government's authority own deleted two sentences 2134 exempted Government bank-expressly And, would surprising, indeed, if eliminated States' ability collect revenue sub silentio. more logical interpretation, one with than 50-year history, merely language become superfluous once owned, could own, 5-8. (b) structure confirms With respect each institution System, contains provision specifically delineates entity's immunity. been granted only limited exemptions. Had intended confer upon them comprehensive types institutions, done so expressly. 8-9. 10 S. W. 3d 142, reversed remanded. CERTIORARI TO MISSOURI Thomas, J., delivered unanimous Court. Justice Thomas Opinion 1 case we asked decide whether National Bank Cooperatives, which We hold not. 2 * 1933, 48 Stat. 257, amended, et seq., System meet specific credit needs farmers. Among were cooperatives, farm districts, Central Cooperatives. These designed make loans cooperative associations engaged marketing products, purchasing supplies, furnishing services. 3 Today, includes production associations, banks, land associations. 2002(a). By statute, "federally instrumentalit[y] States." 2121 (banks Cooperatives); 2141 (National 2071(a) (b)(7) (production associations); 2011(a) (farm banks); 2091(a) (b)(4) (federal associations). also addresses institutions. applicable at issue case, states: 4 "Each its notes, debentures, issued shall exempt, both principal interest (except surtaxes, estate, inheritance, gift taxes) now hereafter imposed State, territorial, local taxing authority, Federal hands holder." 2134. 5 formed 1989 consolidation district Cooperatives.1 Cooperatives years 1994 shown those returns. March paid-erroneously, alleged-for Relying doctrine implied originated McCulloch v. Maryland, Wheat. 316 (1819), Constitution argued waive Director Revenue request. 6 On appeal, Administrative Hearing Commission upheld Revenue's assessment tax, established statutorily income. commission determined provide contrast reasoned same For jurisdictional reasons, CoBank's constitutional claim. 7 commission's decision taxation.2 Production Assn. Southeastern Mo. Revenue, 143 (2000). provides According Court, institutions' taxation, taxes. noted courts member concluded Id., 143-144 (citing Servs. Ark., PCA Arkansas, 76 F.3d 961, 964 (CA8 1996), rev'd grounds, 520 821 (1997); 338 Ark. 322, 327, 994 2d 453, 456 (1999), cert. denied, 529 1036 (2000); Northwest La. 98-1995 (La. App. 11/5/99), 746 So. 280). 8 New Mexico Appeals Indiana reached opposite conclusion See Eastern N. M. Taxation Dept., NMCA-021 26, 999 P.2d 1031, 1038, 997 820 (N. 2000); Dept. Mid-America, ACA, 734 E. 551, 560 (Ind. 2000). Since statutory history provisions regarding virtually identical, compare 2077 2134; 1971, 2.17, 85 602, 3.13, 608; Amendments 1985, 205(d)(16), 99 1705, 205(e)(10), 1705,3 certiorari resolve conflict. 530 1260 II 9 "instrumentalities held, addressing contractors conducting business entitled "so closely connected realistically viewed separate entities." Mexico, 455 720, 735 (1982). argues connected" indistinguishable thus disagrees characterization asks us conclude indeed virtual arms worthy under McCulloch. need not, however, reach question. Implied becomes failed indicate To sure, include express statement However, nothing statute indicates repeal previous approval negative implication 11 Upon creation during periods 63, 267 ("Such ... income, Territorial, . herein apply property after retired"). Under When holds 608. Although time privately Governor Administration purchase "as temporary help several emergency borrowers." 4.0, 609. 1971 therefore provided, relevant part: 13 "Such preceding sentence year part thereof Administration." 14 608-609. 15 enacted amendments Act. things, position Administration, Administration's included numerous "Technical Conforming Amendments." 201, 1688; 101, 1678; 205, 1703-1707. One technical conforming deletion first, second, bank. 16 altered CoBank, authorization immune McCulloch's doctrine. share interpretation effect amendment, there indication amendments. Nothing changes this. important fact 17 mean radical-but entirely implicit-change amendment "technical amendments" 1703-1707 (section Amendments"). fact, referring 30 deletions references Governor, Ibid. explanation Act, permitting simply final while retaining granting exemption, trouble concluding Short act, find Congress' silence insufficient disrupt B 18 addition, enjoyed entity. example, receive type here 2023 ("The capital, reserves, surplus thereof, derived therefrom, Federal, municipal, ..."); 2098 ("Each association ..."). 19 contrast, since exemptions elsewhere Thus, light Act-and explicit grant System-Congress' 20 *** 21 judgment remanded further proceedings inconsistent opinion. It ordered. NOTES: "agricultural bank," recognizes having combined CFR 618.8005(c), 619.9020 consolidated 267.

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