Document: 481 U.S. 221 107 S.Ct. 1722 95 L.Ed.2d 209 ARKANSAS WRITERS' PROJECT, INC., Appellantv.Charles D. RAGLAND, Commissioner of Revenue Arkansas. No. 85-1370. Argued Jan. 20, 1987. Decided April 22, Syllabus Arkansas imposes a tax on receipts from sales tangible personal property, but exempts numerous items, including newspapers and "religious, professional, trade, sports journals and/or publications printed published within this State" (magazine exemption). Appellant publishes in general interest magazine that includes articles variety subjects, religion sports. In 1984, relying Minneapolis Star & Tribune Co. v. Minnesota Comm'r Revenue, 460 575, 103 1365, 75 295, appellant sought refund it had paid since 1982, asserting the exemption must be construed to include its magazine, subjecting tax, while other magazines were exempt, violated First Fourteenth Amendments. After appellee denied claim, review State Chancery Court, stating an additional claim under 42 U.S.C. §§ 1983 1988 for injunctive relief attorney's fees. That court granted summary judgment, construing because was The Supreme Court reversed, holding applies only religious, or periodicals. rejected discriminated against appellant, ruling success would avail nothing still subject even if fell. also refused find appellant's Amendment rights been violated, permissible "ordinary form taxation" which publishers are not immune. Accordingly, did consider fees claim. Held: 1. has standing challenge scheme. Appellee's argument asserted injury can redress concededly neither newspaper nor journal is unpersuasive, effectively insulate underinclusive statutes constitutional challenge. alleged sufficient stake litigation's outcome, Court's stands as total bar relief, attack holds promise escape burden imposed upon by challenged statute. P. 227. 2. scheme taxes magazines, journals, violates Amendment's freedom press guarantee. Pp. 227-234. (a) Even though there no evidence improper censorial motive, burdens protected discriminating small group appellant's, pay tax. Such selective taxation one types discrimination identified Star. Indeed, use here more disturbing than case statute requires official scrutiny publications' content basis imposing This incompatible with Amendment, whose requirements avoided merely does expression particular views expressed specific members media might publish discussions various subjects contained magazine. 227-231. (b) Appellee satisfied heavy showing discriminatory necessary serve compelling state narrowly drawn achieve end. State's raising revenue justify imposition some others, based solely their content, revenues could raised simply taxing businesses generally. Furthermore, appellee's assertion serves encouraging "fledgling" persuasive, tailored To contrary, both overinclusive enumerated regardless whether they lucrative well established, making struggling specialty ineligible favorable treatment. Moreover, although need "foster communication" support blanket cannot certain publishers. 231-232. 3. Since courts have yet indicated will exercise jurisdiction over claims 1988, remands give them opportunity do so. 233—234. 287 Ark. 155, 697 S.W.2d 94 698 802, reversed remanded. MARSHALL, J., delivered opinion BRENNAN, WHITE, BLACKMUN, POWELL, O'CONNOR, JJ., joined, Parts I, II, III B, IV, V STEVENS, joined. filed concurring part post, p. 234. SCALIA, dissenting opinion, REHNQUIST, C.J., 235. Anne Owings Wilson, Little Rock, Ark., appellant. John Steven Clark, appellee. Justice MARSHALL Court. 1 question presented guarantee press. 2 * 1935, property. 1935 Ark.Gen. Acts 233, § 4, pp. 593, 594, now codified at Ark.Stat.Ann. 84-1903(a) (1980 Supp.1985). rate currently four percent gross receipts. 84-1903 (three percent); 84-1903.1 (Supp.1985) (additional percent). Numerous items exempt however. These "[g]ross proceeds derived sale newspapers," 84-1904(f) (newspaper exemption),1 trade . when sold through regular subscriptions." 84-1904(j) exemption).2 3 Writers' Project, Inc. Times, monthly circulation approximately 28,000. It Arkansas, mail subscriptions, coin-operated stands, over-the-counter sales. 1980, following audit, assessed Times. initially contested assessment, eventually reached settlement agreed beginning October 1982. However, reserved right renew change law drawing into validity Arkansas' structure. Record 46-47. 4 Subsequently, 295 (1983), held unconstitutional paper ink used production newspapers. January authority, maintained Times refund. App. Juris. Statement 12-14. 5 Having exhausted available administrative remedies, complaint Pulaski County, seeking Commissioner's decision. stated parties stipulated "newspaper" journal" that, during relevant time period, $15,838.22 create two categories tax-exempt 84-1268 (Pulaski Cty. Ct., Mar. 29, 1985). Because came second category, entitled determined resolution dispute statutory grounds made unnecessary address issues 6 decision (1985). creating single order qualify exemption, periodical." Id., 157, S.W.2d, 95. Concluding "neither party questioned constitutionality exemption," failed claims. Ibid. 7 On petition rehearing, issued supplementary acknowledged pursued "should discussed" court's original opinion. 157A, 157B, 803 treatment, reasoning exemptions considered, because: 8 "[I]t [appellant] wins argument. immaterial favor taxpayer may invalid, discriminatory. If so, fall, [Arkansas] Times." 803. 9 As objections, noted "the owners immune any 'ordinary forms taxation' government." Ibid., quoting Grosjean American Press Co., 297 250, 56 444, 449, 80 L.Ed. 660 (1936). contrast Star, supra, Grosjean, concluded taxation." 1988. 10 We probable jurisdiction, 476 1113, 106 1966, 90 651 (1986), we reverse. II 11 threshold matter, argues Extending below, he contends conceded journal, redressed therefore meet set forth Valley Forge Christian College Americans United Separation Church State, Inc., 454 464, 472, 102 752, 758, 70 700 (1982). 12 accept notion standing, challenge, proposition soundly Orr Orr, 440 268, 272, 99 1102, 1108, 59 306 (1979). position inconsistent decisions considered others similarly situated operation adversely affecting claimant. See, e.g., Armco Hardesty, 467 638, 104 2620, 81 540 (1984); Carey Brown, 447 455, 100 2286, 65 263 (1980); Police Dept. Chicago Mosley, 408 92, 92 33 212 (1972). Contrary assertion, outcome litigation. "The cour[t] stand[s] relief; [its] derives statut[e]." U.S., 273, S.Ct., 1108. A. 13 Our cases clearly establish Amendment.3 See 591-592, 1375; 244-245, 446-447. took distinct forms. First, generally applicable economic regulations legitimately subject, treated differently enterprises. 581, 1369 (the "singl[es] out treatment unique law"). Second, targeted due fact first $100,000 tax; thus "only handful all, fewer significant amount tax." 591, 1375. 14 Both established where, here, motive. id., 579-580, 592, 1368-1369, 1375 ("Illicit legislative intent sine qua non violation Amendment"). press—either singling whole targeting individual press—poses danger abuse State. 15 "A power differentially, opposed generally, gives government powerful weapon selected. When little cause concern. fear destroy selected taxpayers burdensome impose same rest constituency." 585, 1371. 16 Addressing type discrimination, defends regulation. He acknowledges those exempting magazines. Nonetheless, apparently nominally all see 84-1903, insists should upheld. 17 facts case, fundamental singles whole, targets While genuinely nondiscriminatory constitutionally permissible, 586, n. 9, 1372, characterized nondiscriminatory, evenly applied means few tax;4 respect, operates much way treats less favorably suffers 18 involves differentiates between particularly repugnant principles: magazine's status depends entirely content. "[A]bove else, restrict message, ideas, content." 95, 2289. 462-463, 2291. "Regulations permit Government discriminate message tolerated Amendment." Regan Time, 468 641, 648-649, 3262, 3266-3267, 82 487 (1984). 19 uniformly devoted sports, 84-1904(j). deal (sometimes sports), taxed. determine "enforcement authorities necessarily examine conveyed. ." FCC League Women Voters California, 364, 383, 3106, 3119, 278 648, 3266. 20 system evade strictures similar distinction viewpoint restrictions Consolidated Edison Public Service Comm'n New York, 530, 2326, 319 (1980). "[t]he hostility content-based regulation extends viewpoints, prohibition public discussion entire topic." 537, 2333. 383-384, 3119; Metromedia, San Diego, 453 490, 518-519, 101 2882, 2898, 69 800 (1981) (plurality opinion); 462, 6, 2291, 6. 21 Nor grants For example, 84-1904(f), discriminates determining "It hardly answers person's objection restriction his speech another person, outside control, speak him." Taxation With Representation Washington, 461 540, 553, 1997, 2005, 76 129 (1983) (BLACKMUN, concurring). Virginia Pharmacy Bd. Citizens Consumer Council, 425 748, 757, 15, 96 1817, 1823, 48 346 (1976) ("We aware principle abridged speaker's listeners come means"). B 22 faces attempting defend approach such differential taxation, show 23 advanced several interests. asserts revenue. recognized important one, explain invoked relation businesses. context, revenue, 24 "[s]tanding alone, special press, alternative achieving without concerns available: raise avoiding threat implicit press." (footnote omitted). 25 true 26 suggests intended encourage publishers, who limited audiences access volume advertising Brief 16. assuming fledgling underinclusive. "fledgling"; most well-established By contrast, specified 27 Finally, oral Tr. Oral Arg. 28, 32. fosters communication religion, professional matters. purpose way. C 28 regulations, nn. 2, critical format, rather content: distinguished contain reports current events interest. Just distinctions impermissible prior different impermissible, absent justification.5 29 hold today application our eliminates decide periodicals presents invalidating IV 30 1983, corresponding entitlement found violation, urges us action award claim6 remand 31 recognize federal concurrent actions brought see, Martinez 444 277, 283, 7, 558 62 (1980), Tax Injunction Act, 1341, ordinarily precludes entertaining challenges assessment taxes. disagree, however, cases.7 leave necessity 32 "[a] places action." 592-593, 1376. burden. justification selective, invalid Amendment. reverse judgment proceedings so ordered. 34 judgment. 35 extent relies " 'that content,' ante, 229 (quoting 2289, (1972)), I am unable join it.* do, agree justifying plainly III-B, concur 36 whom THE CHIEF JUSTICE joins, dissenting. 37 All displays enduring tendency silence, facilitate silencing, voices disapproves. Judicial Branch Government, principal restraint tendency, judicial error, requirement judges write opinions providing logical reasons treating situation another. dissent today's provides rational distinguishing subsidy many common unquestionably lawful. thereby introduces element arbitrariness ultimately erodes freedoms issue. 38 dispute, think evident, sustain ordinary equal protection attack, Massachusetts Board Retirement Murgia, 427 307, 312, 2562, 2566, 49 520 (per curiam ). Though assuredly "narrowly tailored," reasonably related legitimate goals (a category magazines) collection where cost exceeds proceeds. 15-16. pass "strict scrutiny" test speech, namely, "necessary end." Ante, 231; cf. Department 101, 2293, (1972) (discriminatory ban picketing); 461-462, 2290-2291, (1980) (same). 39 Here, earlier rests premise purposes denial equivalent demonstrably erroneous consistently applied. long recognized—in contexts elsewhere—the reality exemptions, credits, deductions "a administered system," rule legislature's subsidize infringe right, strict scrutiny." 544, 549, 2000, 2002, (upholding organization engaged lobbying veterans' organizations received activities). Cammarano States, 358 498, 513, 79 524, 533, 462 (1959) (deduction activities); Buckley Valeo, 424 1, 93-95, 612, 670-671, 46 659 (declining apply campaign finance excludes candidates); Harris McRae, 448 297, 324-326, 2671, 2692-2693, 784 abortions medical procedures subsidized); Maher Roe, 432 97 2376, 53 484 (1977) 40 reason participation "infringe" that—unlike direct prohibition—such not, rule, coercive effect. may, course, manipulated provide relief. But remotely here. implausible 4% exceptions, meant inhibit, effect inhibiting, publication. 41 Perhaps stringent, prophylactic appropriate, applied, pertains matter political concern—a expressly take point view controversial issue foreign policy. Political accorded elsewhere. 375-376, 3114-3115, (1984) (invalidating editorializing recipients Corporation Broadcasting, ground "is exacting degree protection"); Connick Myers, 138, 143-146, 1684, 1688-1689, 708 (discussing history employees); Red Lion Broadcasting FCC, 395 367, 89 1794, 371 (1969) FCC's "fairness doctrine," obligations broadcasters regard "controversial importance"). There need, realistically quite impossible, extend exclusion appropriate opposing shades expression. majority casts doubt wide preferences subsidies draw matter. States Postal Service, bulk written material disseminated nonprofit educational, scientific, philanthropic, agricultural, labor, veterans', fraternal organizations. Domestic Mail Manual 623 Must preference justified "compelling governmental need" purpose—dissemination information about boxing, example—does receive rate? Kennedy Center, subsidized Federal up $23 million per year, 76n(a), authorized "present classical contemporary music, opera, drama, dance, poetry." 76j. Is kinds expressive activity, learned lectures speeches, excluded? Are research grant programs funding activities 47 396(g)(2), money study exposition others? 43 principled distinguish subsidization these areas—which surely uphold—from strike down granting own idiosyncratic discretion. my view, threatens infinitely dissent. added 1941. 1941 Ark.Gen.Acts 386, 1060. Gross Receipts Regulations 1981, adopted define publication sheet containing public, regularly short intervals daily, weekly, bi-weekly, circulation." GR-48(A)(1), reproduced 50. 1949. 1949 152, 491. "any pamphlet, periodical, newspaper, designed entertainment segment thereof." GR-48(A)(5), term "regular subscription" defined purchase advance payment number period time, subscriber otherwise." GR-48(A)(6), Appellant's obviously intertwined interests arising Equal Protection Clause. 94-95, directly implicates analyze primarily terms. 1372 (1983). maintains pays (Affidavit Alan Leveritt). periodicals, addition 22. Whether three paying falls addressed either cover reach ruled impact exemption. action. construction violation. assume clear. Note, Section Court: A Remedy Unconstitutional Taxation, Yale L.J. 414, 420-421 Spencer South Carolina Comm'n, 281 S.C. 492, 316 S.E.2d aff'd equally divided 471 82, 105 1859, 85 Of affirmance precedential weight. Neil Biggers, 409 188, 192, 93 375, 378, 401 separate 2337, Widmar Vincent, 263, 269, 278, (1981); 692, 3289, 408, 3132,

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