Legal Document

417 U.S. 369 94 Supreme Court Reporter 2291 41 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 132 CITY OF PITTSBURGH, Petitioner,v.ALCO PARKING CORPORATION et al. Number 73—582. Argued April 15, 1974. Decided June 10, Syllabus Respondent operators of offstreet parking facilities in Pittsburgh, Pa., sued to enjoin the enforcement a city ordinance imposing an increased 20% tax on gross receipts from or storing automobiles at nonresidential places, alleging, inter alia, that was invalid under Due Process Clause Fourteenth Amendment. The lower courts sustained ordinance, but Pennsylvania invalidated it ground so unreasonably high and burdensome that, context competition public lots operated by authority, which enjoyed certain exemptions other advantages, had 'effect' uncompensated taking property contrary Clause. Held: is not unconstitutional, constitutionally entitled put automobile parker choice using transportation paying tax. Pp. 373—379. (a) fact excessive as render business unprofitable even threaten its existence furnishes no for holding Magnano company versus Hamilton, 292 40, 54 599, 78 L.Ed. 1109; Alaska Fish Salting & By-Products Smith, 255 44, 219, 65 489; judiciary should infer such fact, alone, legislative attempt exercise forbidden power form seeming 373—376. (b) does lose character revenue-raising measure may be too merely because taxing directly through instrumentality enjoying various forms exemption, competes with taxpayer manner thinks unfair, since demand permit undertake separate nonburdensome taxes oversee terms circumstances government tax-exempt instrumentalities compete private sector. Pacific KF135 P2 376. 453 Pa. 245, 307 Atlantic Reporter, 2nd 851, reversed. Ralph Lynch, Jr., petitioner. Leonard Boreman, respondents. Mr. Justice WHITE delivered opinion Court. 1 issue this case validity Federal Constitution Ordinance 704, enacted Pennsylvania, City Council December 1969, placed obtained all transactions involving motor vehicle place return consideration.1 superseded 1968 dentical tax, rate 15%, turn followed 10% imposed 1962. Soon after enactment, 12 located alleging Equal Protection Clauses Amendment, well Article VIII, § 1, Constitution, requires shall uniform upon same class subjects. It appears findings opinions state time suit, there were approximately 24,300 spaces downtown area city, 17,000 respondents operated. Another 1,000 hands party suit. balance 6,100 owned Parking Authority agency created pursuant Law 5, 1947, Pa.Stat.Ann., Tit. 53, 341 seq. (1974). trial court also found then deficiency 4,100 area. 2 Common Pleas ordinance. Its judgment affirmed Commonwealth four-to-three vote, 6 Pa.Cmwlth. 433, 291 556 (1972), rehearing, 295 349 (1972); reversed, four three. 851 (1973). That rejected challenges Clause, Because decision appeared conflict applicable decisions Court, we granted certiorari, 414 1127, 863, 38 751 (1974), now reverse judgment.2 3 In two aspects Pittsburgh combined deprive due process law. First, thought 'unreasonably high' responsible inability nine 14 different lot conduct their profit remainder show more than marginal earnings. 259—260, A.2d, 859—860. Second, faced Authority, exemption (although necessarily tax)3 advantages enabled offer rates those charged operators. average all-day $2 compared $3 allday lots. Ibid. court's conclusion '(w)here unfair competitive advantage accrues, generated use funds, local expense owners, without just compensation, clear constitutional violation has occurred. . .' '(T)he 20 percent causing majority operate businesses loss, special constitutes unconstitutional law Amendment Constitution.' Id., 267, 269 270, 864. 4 We cannot agree these considerations, either alone together, are sufficient invalidate involved case. claim particular unduly deny both familiar recurring, consistently refused task passing 'reasonableness' otherwise within Congress authorities, hold renders unprofitable. 5 1109 (1934), against attack excise 15¢ per pound butter substitutes sold State. Conceding 'tax will result destroying intrastate appellant,' id., 45, S.Ct., 602, held 'the clause contained Fifth limitation conferred Congress,' rule applied States, lawful State 'be judicially stricken down simply restricting occupations business.' 601. premise if bring about destruction business, said, been 'uniformly furnishing juridical striking act.' 47, 602. Veazie Bank Fenno, 8 Wall. 533, 548, 19 482 (1869); McCray 195 27, 24 769, 49 (1904); 489 (1921), effect. Fish, manufacture fish products sustained, saying, 48—49, 220: 'Even destroy would made require compensation alone. Those who enter take risk. know objection exacting discouraging alternative giving up when legislature full taxation.' See International Harvester Wisconsin Dept. Taxation, 322 435, 444, 64 1060, 1065, 88 1373 (1944); Child Labor Tax Case, 259 20, 30, 42 449, 66 817 (1922); Brushaber Union R. Co., 240 24, 36 236, 244, 60 493 (1916); Flint Stone Tracy 220 107, 168—169, 31 342, 356, 55 389 (1911). 7 Neither parties nor purports differ foregoing principles. But concluded one 'rare instances' recognized cases where invoked statute 'so arbitrary compel involve exertion power, constitutes, substance effect, direct as, example, confiscation property.' U.S., 44,4 There several difficulties position. face recites purpose '(t)o provide general revenue .,' sustaining equal protection challenge, itself commercial proper subject taxation decided, 'not reason, oprations singled out raise traffic related problems engendered operations.' 257, 858 (emphasis added). 9 have difficult any standpoint sense measure. concededly raised substantial sums money; collected insubstantial, Sonzinsky 300 506, 513—514, 57 554, 555—556, 81 772 (1937), only secondary, Hampton 276 394, 411—413, 48 348, 352—353, 72 624 (1928), treat exaction anything presumption accorded 10 Rather conclude levy all, accepted property. 269, did such, beyond bona fide sufficiently burdensome, could This approach already cited, particularly oft-repeated principle occupation business. supra, 602; 40 41, 451—452; 548. 11 Nor convinced loses judiciary. undertaken not, judicial oversight teaching prior demands permits inclined chart course. Bank, bank notes over dissenters foster national banks, National Government, preference banks chartered States. More pont Puget Sound Power Light Seattle, 619, 542, 1025 light actively competed consumers. company's contention 'constitutional limitations transgressed affects sovereign competing.' 623, 544. Calling support, contention, prevent conducting waterworks preclude help rival succeed.' 626, 546. Madera Water Works Madera, 228 U.S.,454, 33 571, 915 (1913). remains good and, together authorities referred, reversal 13 Even assuming hence 'taking' inferred violated urged suffer they pass customers, who, class, pay services indirectly utilize connection incident twice daily movement large numbers cars streets garages. response prevented raising prices recouping losses collecting customers. On record before us, convincing basis concluding effected respondents' undisturbed places area, overall shortage facilities, authority supplied spaces. latter priced substantially anticipated preferred seeking Insofar reveals, destructive effect situation immediately preceding damage flow chiefly, cheaper lots, longer afford price all. If case, another instance enacts 'discouraging business,' policy objection. 49, 220; 46, recited '(n)on-residential vehicles, reason frequency use, changing intensity hours day, location, relationship congestion characteristics, present requiring municipal affect interest, differently accessory occupancy residences.' By enacting insisted providing utilizing compensate parking. 15 16 Judgment 17 POWELL, concurring. 18 fully explicates presented here, N Dec. Immigration Nationality Decisions am accord resolution. write briefly emphasize my understanding today's foreclose possibility some combination might amount Amendments. To extent, inevitably handicapped governmental competition, makes plain legitimate restrained account. conceivable, however, punitive industry economic entity effectively expropriate profit. Such functional equivalent requirement compensation. As clearly ante, 377—378, circumstance shown exist instant defined follows: '(c) 'Non-Residential Place' 'Parking Place'—any City, whether wholly partially enclosed open, vehicles parked stored period consideration including: '(i) garage extent provided leased occupants residence primises with, to, residence, (ii) exclusively owner lessee hotel, apartment tourist trailer park, guests tenants park additional consideration. 'As used herein, term 'residence' includes (i) building designed family living sleeping purposes dwelling unit hotel hotel. 'The 'hotel', 'apartment hotel,' 'tourist court,' 'trailer park' 'dwelling unit' herein Zoning Ordinance, 192, approved May 1958, amended.' 704 while appeal pending curts. 266 n. 13, 863 13. new effective 1973, paid transactions, patron operator. mooted refunds 704. applies transactions. following, 265, 862: writing, Allegheny County ruled Public exempt payment challenged 687, July Term, 1972. Moon Township, 436 54, 258 630 (1969). An presently 'However, seems make little read difference dispute. mean reality accounting transaction, transferring dollars pocket another. Thus although appellants' argument strengthened common pleas decision, need rest our supra.' Cf. Heiner Donnan, 285 312, 326, 52 358, 361, 76 (1932); Nichols Coolidge, 274 531, 47 710, 713—714, 71 1184 (1927); 37 seq., 450, 24—25, 244—245, McCary 60, 778, Henderson Bridge 173 592, 614—615, 553, 561—562, 43 823 (1899); McCulloch Maryland, Wheat. 316, 423, 579 (1819).

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