Document: 344 U.S. 624 73 S.Ct. 465 97 L.Ed. 617 HOWARD et al.v.COMMISSIONERS OF SINKING FUND CITY LOUISVILLE al. No. 295. Argued Jan. 12, 1953. Decided Feb. 9, Messrs. W. A. Armstrong and Donald E. Armstrong, Louisville, Ky., for appellants. Gilbert Burnett Alex P. Humphrey, appellees. Mr. Justice MINTON delivered the opinion of Court. 1 Two questions are presented by this appeal: (1) The validity annexation City Kentucky, certain federally owned land on which a Naval Ordnance Plant is located; (2) Louisville occupational tax or license fee ordinance as applied to employees Plant. 2 By condemnation proceedings filed in 1940, United States acquired located, with consent Legislature Kentucky given general statute.1 In 1941, Secretary Navy behalf accepted exclusive jurisdiction over area, Governor acknowledged acceptance. ordinances enacted 1947 1950, annexed territory, including tract. was not challenged States. After annexation, started collect from plant privilege working city, measured one percent all salaries, wages commissions earned city.2 3 appellants, Plant, sued Jefferson Circuit Court themselves others similarly situated declaratory judgment that within therefore subject levied them City, an injunction restraining collection tax. appellees special demurrer were overruled court. having refused plead further, court granted favor appellants pleadings, holding because area occupied could be since it ceased part Commonwealth when Enforcement taxing enjoined. Appeals reversed, 248 S.W.2d 340, accordingly entered appellees, affirmed, 249 816. We noted probable jurisdiction. 4 first contend annex federal had assumed it. With we do agree. When States, property upon did cease Kentucky. geographical structure remained same. rearranging structural divisions Commonwealth, accordance state law, became just County A may conform its municipal structures own plan, so long does interfere exercise Kentucky's acquisition gave power area. change boundaries least use disposition property. fiction can have no prevent exercising boundaries, there interference asserted Federal Government. sovereign rights dual relationship antagonistic. Accommodation cooperation their aim. It friction, fiction, must give heed. 5 This question has been before other courts, right upheld. Wichita Falls v. Bowen, 143 Tex. 45, 52, 182 695, 699, 154 A.L.R. 1434; Norfolk Portsmouth, 186 Va. 1032, 1047, 45 S.E.2d 136, 142—143. agree these cases hold free 6 Even though pursuant still remains except modified statute. U.S.Const., Art. I, § 8, cl. 17; Surplus Trading Co. Cook, 281 647, 652, 50 455, 74 1091. Within jurisdiction, income paid Government who worked at U.S.C. §§ 105—110, U.S.C.A. known Buck Act. Section 106 Act reads follows: 7 's 106. Same; 8 '(a) No person shall relieved liability any State, duly constituted authority therein, levy such tax, reason his residing receiving transactions occurring services performed area; State full same extent effect 9 '(b) provisions subsection (a) applicable only respect receipts received after December 31, 1940.' (Supp. V) 106, 10 110(c) defines 'income tax' 11 '(c) term means on, to, by, net income, gross receipts.' 110(c), 110(c). 12 Thus specifically earnings party 'receiving * area.' words, if there. 13 But next argue erred City's meaning Act, under Constitution 14 Was Act? prior case, held but Louisville. Sebree, 308 Ky. 420, 429—431, 214 248, 253—254. law what grant definition receipts. instant correctly stated whether law. authorized conceded, outside virtue collected 15 Since valid. affirmed. 16 Affirmed. 17 DOUGLAS, whom BLACK concurs, dissenting. 18 I able follow argument terms 'license fee' 'the privilege' engaging activities. narrowly confined wages, profits businesses, professions, occupations. Many kinds excluded, e.g., dividends, interests, capital gains. excllusions emphasize doing business That kind be. 248. Congress yet local authorities '3.010. Consent lands. consents lands appurtenances heretofore legally acquired, hereafter purchase, condemnation, erection forts, magazines, arsenals, dock yards, post offices, custom houses, courthouses needful buildings, locks, dams canals improving navigation rivers waters borders Kentucky.' Ky.Rev.Stat.1948. 'On July 1, every person, association, corporation, entity engaged occupation, trade, profession, activity pay into Sinking Fund purposes set forth 91.200 Revised Statutes amended General Assembly annual said activities, per centum compensation work done rendered City; (b) occupations activities conducted City.' Ordinance 83, Series

Category: 9