Legal Document

347 U.S. 590 74 Supreme Court Reporter 757 98 L.Ed. 967 BRANIFF AIRWAYS, Inc.v.NEBRASKA STATE BOARD OF EQUALIZATION AND ASSESSMENT et al. Number 476. Argued March 12, 1954. Decided June 1, Mr. William Judge Hotz, Sr., Omaha, Neb., for appellant. C. Sheldon, Lincoln, appellees. Justice REED delivered the opinion of Court. 1 The question presented by this appeal from Nebraska is whether Constitution bars State levying an apportioned ad valorem tax on flight equipment appellant, interstate air carrier. Appellant not incorporated in and does have its principal place business or home port registered under Civil Aeronautics Act, 52 Statutes-at-Large 977, 49 United States Code KF62 §§ 401—705, Annotated KF65 U5 that state. Such employed as a part system commerce operating over fixed routes landing departing airports within regular schedules. challenge reasonableness apportionment prescribed taxing statute application such to property. It contends only used immune taxation because without situs state regulation navigation Federal Government precludes taxation. 2 This petition declaratory judgment invalidity 77—1244 77—1250 statute1 injunction against collection taxes assessed provisions previous years was filed original action court below Mid-Continent Airlines, Inc., tried upon stipulated facts. Subsequent filing, but before decision, appellant were merged August 1952, substituted party plaintiff. had been Delaware with corporate Wilmington state, Braniff Oklahoma has City. Pursuant merger Mid-Continent's main executive offices moved Kansas City, Missouri, appellant's Dallas, Texas. number regularly scheduled stops Nebraska, fourteen per day at Omaha four affected merger. 3 Authority overhaul base aircraft Minneapolis-St. Paul Airport, Minnesota. All undergoing fly schedules circuit ranging Minot, North Dakota, New Orleans, Louisiana, states including Minnesota, Oklahoma. No made Delaware. are short duration since utilized discharge loading passengers, mail, express, freight, sometimes refueling. neither owns nor maintains facilities repairing, reconditioning, storing rents depot space hires other services required. no distinction taxability between those when flights into domicile (Delaware) did enter new (Oklahoma). 4 carriers applied who operate intermittently defines 'flight equipment' 'aircraft fully equipped flight',2 provides 'Any measured value doing shall be collected Tax Commissioner.'3 A formula arriving proportion carrier's allocated state.4 5 uses allocation 'proposed uniform provide equitable method carriers' adopted Council Governments recommendation National Association Administrators 1947.5 Use apportion air-carrier among follows Board report Congress.6 reports, levy, rate average.7 6 Required reports 1950 show about 9% revenue 11 1/2% total tonnage originated From these figures, using statutory formula, Commissioner arrived valuation $118,901 allocable resulting $4,280.44. Since return 1951 same increased resulted assessment $4,518.29. held violative Commerce Clause dismissed petition.8 7 argues federal statutes governing enacted power preempt field preclude tax. Congress, Act 1938, 1028, § 1107(i)(3), 176(a), enacted: 8 'The America declared possess exercise complete exclusive national sovereignty above States, all inland waters portions adjacent marginal high seas, bays, lakes, which international law treaty convention exercises jurisdiction.' 9 provision Air 1926, 44 568, 572, 6. 1938 also declares 'a public right freedom transit' navigable exist any citizen States. 980, 3, 403, 403.9 10 pertinent 1926 assertion sovereignty. nations respecting civil aviation ratified 6, 1946, 61 1180, accords. however, expressly exclude sovereign powers states. H.R.Rep.No. 69th Cong., 1st Sess., Page 10. gives support different view.10 After enactment more than twenty Uniform Act. three indicating consider their except extent ceded constitutional grant.11 Conference Commissioners Laws enact withdrawn 1943.12 Where adopted, it continues effect. See versus Praylou, Cir., 208 Reporter, 2nd Series 291. Recognizing 'exclusive sovereignty' transit, Causby, 328 256, 261, 66 1062, 1065, 90 1206, nevertheless owner land might recover taking use space, destruction whole usefulness These Acts regulating bottomed ownership distinguished In reporting bill became said: 12 declaration what constitutes source power, clause, Congress long many acts non-navigable waters. owes basis which, decisions Court, given rise easement regardless subjacent soil.' 13 Gibbons Ogden, Wheat. 193, 23, comprehanded streams. Its breadth covers commercial intercourse. But streams prevent consistent power. Gilman City Philadelphia, Wall. 713, 729, 18 96. Since, streams, virtue impaired. ex rel. Phillips Guy KF105 F3 Atkinson Co., 313 508, 534, 1050, 1063, 85 1487. title beds banks riparian owners, subject navigation.13 water deemed deny property carriers. We conclude existent challenged here. 14 Nor demonstrated otherwise burden commerce.14 frequently reiterated immunize instrumentalities taxation, may required pay nondiscriminatory share burden.15 And allege discriminates nor, noted above, statute.16 15 argument depends ultimately, never 'attained taxable Nebraska' imposes commerce. relying issue specifically claiming protection Due Process Fourteenth Amendment, names wrong clause position. While commodity en route market sufficiently settled purpose subjection determined question,17 bare instrumentality one due process.18 However, timely raised preserved contention attained Nebraska. Though inexplicit, we process clear intendment hold presented. People York Bryant Zimmerman, 278 63, 67, 61, 73 184, cases cited; Wolfson Kurland, Jurisdiction 149 seq. 16 relies involving ocean-going vessels See, e.g., Hays Pacific Mail S.S. 17 How. 596, 254; Morgan Parham, 471, 21 302; Southern company Commonwealth Kentucky, 222 32 13, 56 first two efforts entire ships local property, apportionment, they plow open seas. last case holds elsewhere. closer analogy exists planes flying boats ply perceive logical distinguishing impose river boats. Ott Mississippi Valley Barge Line 336 169, 69 432, 93 585; Standard Oil Peck, 342 382, 72 309, 96 427. limitation imposed succinctly stated case: 'So far concerned practical operation relation opportunities, benefits, conferred afforded State.' page 174, 434. Curry McCanless, 307 357, 59 900, 83 1339, evolution restriction reviewed rule thusly: 'When speak jurisdiction chattels being exclusively where physically located, mean benefit laws enabling enjoy fruits his reach effectively interests protected, subjecting them payment tax, so narrowly restricted whose territory physical located set limits others.' Id., 364, 904. Thus devolves eighteen sufficient contact sustain state's levy aircraft. think establish Nebraska's even though do every none continuously habitual employment state.'19 ground pays fuel purchases leaves position rails, motors opportunity exploit commerce, traffic, trade originates reaches Approximately one-tenth produced pickup freight passengers. certainly affords during landings clearly 19 Braniff. permits domicile', supra, 384, 310, deem immaterial domiciled Delaware, through fly, after Oklahoma, make flights. 20 urges Northwest Airlines 322 292, 64 950, 88 1283, unless overruled. carrier 'home port,' permitted fleet although ranged eight states.20 view mustered majority seems fair say Conclusion Judgment announced decision result would reverse. That shown 'that defined domiciliary corpus acquired permanent location, i.e., situs, elsewhere.' 295, 952. recognized 'doctrine engaged commerce', 297, 953, inapplicable 'property (or portion fungible units) permanently situated 298, 953. When 427, here, interpreted permit accordance adhere interpretation. Affirmed. 22 BLACK concurs result. 23 JACKSON dissents reasons concurring 1283. 24 DOUGLAS, concurring. 25 Airways, challenging lay claims State. claim fraction aircraft, basis, attack formula. 26 My understanding our turns permanency there it. Property plane discharging passengers automobile refueling, transit move always Then fraction, more, taxed valorem. 27 & N Dec. Immigration Nationality Decisions mention elemental points reserve explicitly validity serves presents substantial questions. What adequate gross receipts inadequate Moreover, faced question, problem delegate Congress. 28 takes contrary said. passages blur issues blurred confused interesting Board, H.R.Doc.No. 141, 79th entitled Multiple Taxation Commerce. Hence joined opinion. 29 FRANKFURTER, dissenting. 30 One most treacherous tendencies legal reasoning transfer generalizations developed situations seemingly analogous, yet essentially very different, situations. doctrines evolved adjusting rights bearing some interferences secured Clause, bear, course, taxed. took considerable time adjustment regard railroad income—to decide wholly excluded certain taxes, levied reasonably State, income fairly Even railroads, nice distinctions making concluded. 31 stands reason drastic differences slow-moving trains bird-like airplanes reflected law's response limitations claims. conflict agreed demonstrate contrariness caprice minds inherent perplexities novel problems system. canvassed unprecedented, perhaps important thing decided refusal apply transportation enunciated transportation. plain intimation case—that problems, affecting Nation, call comprehensive legislation possessed found resolution directing develop 'means eliminating avoiding, practicable, multiple persons * effect unduly burdening impeding development commerce.' 58 723, 425 note. inquiry thus afoot illuminating report. H.R.Doc.No.141, analyzed difficulties concrete proposals.1 gist proposals makd based relevant factors appropriate ratios. here review, substantially reflects recommended thing, individual determine should taken account how weighted. quite another devise, should, scheme binding Until time, rely apportionment; schemes. each may, modify factors.2 33 means criteria tonnage, revenue, arrivals departures, isolation, unfair adoption congressional could ensure, offend Clause. diverse fluctuating various concededly factors, undue commerce.3 34 complexity Board's Report—the items account, balance struck them, giving unfairly industry vital import—indicates ill-adapted judicial is, choices dealing warily own inescapable duty act. ought left litigation growing out changes methods 35 immunities implicit potential can hardly depend, world affairs, shifting incidence varying particular moment. Courts instruments determination delicate enable weigh complicated economic setting isolated mitigate obvious generally created direct Freeman Hewit, 329 249, 67 274, 278, 91 265. 36 instance constructive competing considerations requires beyond scope process. Davis Department Labor, 317 259, 63 225, 230, 87 246; Halcyon Lines Haenn Ship Ceiling Refitting Corp., 282, 277, 318; Stanard 332 301, 1604, 2067; Gilman, 507, 695. 37 too difficult allow Minnesota personal owned corporation creation, said, planes. us, seeks 38 showing spent units said location doctrine Pullman's Palace Car Pennsylvania, 141 18, 876, 613, cars; 585, barges. cars spend hours days closeness relationship obviously true brief stopovers few minutes. 39 appealing phrase 'interstate must way' invoked know 'way' pay. Of enjoys Like everyone else gasoline fact approximately $22,000 year airport, $14,000 office equipment, trucks 40 partake impalpable unspecific, ordered society, benefits. then, cast Not presence exert presence. believe pause moments power.4 If tie, alight minutes Surely inroad barred Constitution. 41 cannot airplanes, flights, alight, stop then take off tenuously related seize satisfy 42 am unaware imprecision written. intention. acts, subtle focus protect inroads 'opportunities given, afforded, benefits orderly, civilized society.' Wisconsin Penney 311 435, 444, 246, 250, 267. Neb.Rev.Stat.1943, 77—1244(3). 77—1245. Ibid. section purposes arithmetical average following ratios: (1) ratio departures preceding calendar bears period; Provided, nonscheduled operations departures; (2) tons handled (3) originating period.' Resolutions, Eighth General Assembly 95. Carriers, Sess. Recommendations interested groups proper included appendices. Arditto, Local Scheduled L. Com. 162; Kassell, Interstate Cooperation Taxes 302. Bulwinkle introduced bills C.A.B. prescribe Neither enacted. H.R. 3446, Sess.; 1241, 80th 77—1247, 77—1249. Incorporated Equalization Assessment, 157 Neb. 425, Western 746. declared. continued 180, 'airspace minimum safe altitudes Authority'. S.Rep.No.1661, 75th 3d H.R.Rep.No.2254, H.R.Conf.Rep.No.2635, 159: 2. Sovereignty Space.—Sovereignty lands rest granted assumed pursuant grant people 3. Ownership Space.—The vested several owners surface beneath, described Section 4. Lawfulness Flight.—Flight lawful, low altitude interfere existing water, put owner, conducted imminently dangerous lawfully beneath. another, consent, unlawful, forced landing. For damages caused landing, lessee aeronaut liable, provided 5.' Handbook, 1943, Pages 66—67. Efforts continue draft acceptable Aeronautical Code. 1948, 147. Chandler Dunbar Water Power 229 53, 60, 667, 671, 57 1063; Life insurance 339 799, 808, 70 885, 890, 94 1277; Commission Niagara Mohawk 239, 246 seq., 487, 491. alleged invalid 8, cl. 9, 10, Article noting contentions apparently 'abandoned oral argument,' violated. preserve Statement Jurisdiction, issues. Live Stock Bureau Revenue, 303 254, 546, 548, 82 823; Michigan-Wisconsin Pipe Calvert, 157, 165, 396, 400. Palace-Car 613; Ford Motor Beauchamp, 308 331, 60 273, 84 304; Nashville, St. Ry. Browning, 310 362, 968, 1254; Central Greyhound Mealey, 334 653, 654, 662, 663, 68 1260, 1261, 1265, 1266, 92 1633; 434, Canton R. Rogan, 340 511, 514—516, 71 447, 448—449, 95 488. Commerce, Jour. Law Howard, Airplanes Mo.L.Rev. 195; Welch, Contemp.Prob. 584; Green, War Against Aviation, Va.L.Rev. 835; Sutherland Vinciguerra, Octroi Airplane, Cornell L.Q. 161; Saxe, Control 228; Ternes, Aviation Taxation, Mich. S.B.J. 23; Note, Harv.L.Rev. 1097. Independent Warehouses Scheele, 331 70, 72, 1064, 1346; Carson Petroleum Vial, 279 95, 626; Champlain Realty Brattleboro, 260 366, 43 146, 309; Crain, 209 211, 475, 754; Coe Town Errol, 116 517, 715; Brown Houston, 114 622, 1091, 257; Powell, Things Transit, 167, 245, 429, 497. Johnson Refining 290 158, 54 152, 78 238; Frick 268 473, 45 603, 1058; Union Refrigerator Transit 199 194, 36, 50 150; W.R. 198 341, 669, 1077; Beale, Conflict Laws, 533 seq.; Moore, Movables Col.L.Rev. Page, Tangible Movables, 1945 Wis.L.Rev. 125. common-law concept tangible personalty prior invocation Amendment defense bases varied principle applied. Compare cases: Louis Wiggins Ferry 423, 192; Marye Baltimore O.R. 127 117, 1037, 94; Adams Express Ohio Auditor, 165 305, 683. Hartman, Court's Appendix Miller Bros. Maryland, 340, notes 8—20, 535, 540—546. 162, 154, 238. supra; supra. case, incorporating Minn.Stat.1945, 270.071—270.079, amended, Minn.Laws 1953, chapter 672, 2—3, M.S.A. 270.071—270.079. proposal Report—that States—was Governments. However resulted. addition schemes borne mind regarded abstract mathematical formulas, hence closely scrutinized ensure fairness situation. Wallace Hines, 253 66, 782. Lest thought one, Report sets forth formulas proposed responsible groups, Board. while give weight did. 58. With exception remains overnight, Company's remain periods five day. Considering 'permanently' called requisite permanence purposes.

Classification Label: 7