Legal Document

519 U.S. 278117 S.Ct. 811136 L.Ed.2d 761 GENERAL MOTORS CORPORATION, Petitionerv.Roger W. TRACY, Tax Commissioner of Ohio. No. 95-1232. Supreme Court the United States Argued Oct. 7, 1996. Decided Feb. 18, 1997. Syllabus * Ohio imposes general sales and use taxes on natural gas purchases from all sellers, whether in-state or out-of-state, that do not meet its statutory definition a "natural company.'' Ohio's state-regulated utilities (generally termed "local distribution companies'' LDCs) satisfy definition, but State has determined producers independent marketers generally not. LDC thus enjoy tax exemption inapplicable to by other vendors. The very possibility non-exempt reflects an evolutionary change in industry's structure. Traditionally, nearly directly consumers were LDCs, therefore exempt taxes. As result congressional regulatory developments, however, new market structure evolved which consumers, including large industrial end users, may buy rather than pay pipelines separately for transportation. Indeed, during period question, petitioner General Motors Corporation (GMC) bought virtually plants out-of-state marketers, LDCs. Respondent applied GMC's purchases, Board Appeals sustained action. GMC argued appeal, inter alia, denying LDCs violates Commerce Equal Protection Clauses. initially concluded regime does violate Clause because at same rate both companies court then stepped back hold, lacked standing bring challenge, dismissed equal protection claim as submerged argument. Held: 1.GMC raise challenge. Cognizable injury unconstitutional discrimination against interstate commerce stop members class whom ultimately discriminates. Customers also be injured, this case where customer is liable presumably pays more purchased marketers. See Bacchus Imports, Ltd. v. Dias, 468 263, 267, 104 3049, 3053, 82 200. Pp. ___-___. 2.Ohio's differential treatment public Clause. (a) Congress have long recognized value monopoly arrangements local consumers. See, e.g., Panhandle Eastern Pipe Line Co. Michigan Pub. Serv. Comm'n, 341 329, 71 777, 95 L.Ed. 993. Even developments resulted increasing opportunity consumer choose between sold bundled with state-mandated rights benefits two things remained same: did nothing limit States' traditional autonomy authorize regulate franchises, those franchises continued provide vast majority who had neither capacity nor resilience forgo reliability state regulation provided. To day, 50 recognize need engaged distribution. (b) Any notion under assumes comparison substantially similar entities. When allegedly competing entities different products, there threshold question are indeed similarly situated constitutional purposes. If difference products means serve markets, would continue so even if supposedly discriminatory burden removed, eliminating dormant Clause's fundamental objective preserving national competition undisturbed preferential advantages conferred upon residents resident competitors. Here, LDCs' product demand core market-typified residential customers stability supply important-that susceptible sellers likely served except regulated monopolies historically supplied needs. So far noncompetitive concerned, any no job do. On hand, issue might well intensify noncaptive bulk buyers like GMC, protection. Thus, here existence requires treating alike A number reasons support decision give greater weight distinctiveness captive singular role serving market, hence treat dissimilar (c) First most important, obligation proceed cautiously lest it imperil delivery market. importance jeopardizing service supra. serves important health safety interests fairly obvious ways, requirements dependable extended credit assure individual domestic frozen out their houses cold months. legitimate pursuit such compatible Clause, Huron Portland Cement Detroit, 362 440, 443-444, 80 813, 816, 4 852, justification weighed process deciding addressed here. Second, lacks expertness institutional resources necessary predict economic effects judicial intervention invalidating scheme Fulton Corp. Faulkner, 516 ----, 116 848, 859, 133 796. can say modification could subject pressure turn threaten preservation adequate base provision services Finally, should National Government necessary, power competence decide effectuate desirable changes evolved. For half-century been aware Court's conclusion Public Comm'n Ind., 332 507, 68 190, 92 128, Natural Gas Act 1938 exempts retail since only reaffirmed regard. (d) argument facially discriminates apply rejected. courts extend challenged confronted deem hypothetical favoritism constitute transgressing commands. Associated Industries Mo. Lohman, 511 641, 654, 114 1815, 1824, 128 639. 3.Ohio's marketer discriminate commerce, unquestionably rational basis distinction these kinds 73 St.3d 29, 652 N.E.2d 188, affirmed. SOUTER, J., delivered opinion Court, REHNQUIST, C.J., O'CONNOR, SCALIA, KENNEDY, THOMAS, GINSBURG, BREYER, JJ., joined. filed concurring opinion. STEVENS, dissenting Timothy B. Dyk, Washington, DC, petitioner. Jeffrey S. Sutton, respondent. Justice SOUTER Court. 1 Constitution. We hold 2 During issue,1 levied 5% goods, gas, see Rev.Code Ann. §§5739.02, 5739.025 (Supp.1990), imposed parallel goods §5741.02 (1986). Local jurisdictions authorized levy certain additional increased rates much 7% some municipalities. §5739.025 (Supp.1990); Reply Brief Petitioner 13, n. 11. 3 Since 1935, when first imposed, exempted compan[ies]'' §5739.02(B)(7) (Supp.1990).2 Under law, " [a]ny person . [i]s company business supplying lighting, power, heating purposes within state.'' §5727.01(D)(4) (1996); §5727.01(E)(4) §5727.01(E)(8) It undisputed located has, interpreted term exclude non-LDC Chrysler Tracy, 26, 185 (1995), accordingly treated outside tax. exclusion, consequent taxation use, recent stage evolution industry. industry was divisible into three relatively distinct segments: producers, pipelines, This possible largely 1938, 52 Stat. 821, 15 U.S.C. §717 et seq. —(NGA), failed require offer transportation third parties wishing ship gas. result, "interstate [were able] over create maintain monopsony purchase wellhead sale LDCs.'' Pierce, Evolution Regulatory Policy, 10 Nat. Resources & Env't 53, 53-54 (Summer 1995) (hereinafter Pierce). part, then, resold utilities, provided Distributors FERC, 824 F.2d 981, 993 (C.A.D.C.1987), cert. denied, 485 1006, 108 1468, 99 698 (1988); Mogel Gregg, Appropriateness Imposing Common Carrier Status Interstate Pipelines, Energy L.J. 155, 157 (1983). 5 took step toward enacting Policy 1978, 3350, §3301 seq., designed phase prices charged "promote intrastate pipelines'' parties. 57 Fed.Reg. 13271 (1992). Pipelines reluctant common carriage, doing displace own sales, supra, 993, 1985, Federal Commission (FERC) further promulgating Order 436, contained "open access'' rule providing incentives services, 42408. In 1992, culminated FERC's 636, required "unbundle'' carriage sources wished 13267. 6 Although FERC take requiring insure get way point consumption,3 system open access emerged mid-1980s "larger end-users'' began increasingly bypass utilities' networks "construct[ing] pipeline spurs [interstate] pipeline[s] '' Fagan, From Regulation Deregulation: Diminishing Role Small Consumer Within Industry, 29 Tulsa 707, 723 (1994). Bypass posed problem departure end-users left fixed costs spread smaller base. consequently steps 1986 keep income utility adopting regulations allowed transportation, re Ordered Investigation Availability Transportation Service Provided Distribution Utilities End-Use Customers, 85-800-GA-COI (Ohio Util. April 15, 1986); Marketing Committee, 1990 Annual Report, Environmental Law, Year Review 57, 91-92, 207 (1991). 7 led qualified (Supp.1990). held they reasoned "suppl[y]'' §5727.01(D)(4), "not control physical assets distribute gas.'' St.3d, 28, N.E.2d, 187. determination law before us now. 8 here, LDCs.4 State's appealed grounds. contended fell citing day Chrysler, rejected 30, 189 (1995). violated "compan[ies] d[o] production, equipment'' regardless "whether [the sell] out-of-state.'' Id., 31, 190. rule, challenge: 9 "On close inspection, GM actually argues commissioner's application burdens vendors However, member challenge constitutionality basis; our comment inappropriate.'' Ibid. "submerged argument.'' 31-32, granted petition certiorari address issues. 517 1349, 134 (1996). II 11 without one said suffer laws. But cognizable discriminates, payment gets Consumers sort forbidden Article III. Lujan Defenders Wildlife, 504 555, 560-561, 112 2130, 2136, 119 351 12 facts, we 200 (1984), liquor wholesalers Hawaii exempting alcohols produced among burdened Hawaii's suffered raised price imported relative beverages. S.Ct., 3053; 796 (1996) (in-state stockholder imposing higher stock issuers operations purely issuers); West Lynn Creamery, Inc. Healy, 512 186, 2205, 129 (1994) milk dealers subsidy discriminating producers). applies force "plainly ha[s] Court,'' Imports 3053. merits. III 13 negative implication prohibits taxation, see, Quill North Dakota, 298, 312-313, 1904, 1913-1914, 91 (1992), regulation, Brown-Forman Distillers New York Liquor Authority, 476 573, 578-579, 106 2080, 2083-2084, 90 552 (1986), unduly thereby "imped[es] free private trade marketplace,'' Reeves, Stake, 447 429, 437, 100 2271, 2277, 65 244 (1980). claims constitutes "facial'' "patent'' violation differences nature businesses cannot justify distinguishes express terms entities, granting solely fact Ohio, "favor[ed] while disfavoring commerce,'' 16. That is, favored State, "the drafted explicitly along lines order demonstrate design,'' Amerada Hess Director, Div. Taxation, N.J. Dept. Treasury, 490 66, 76, 109 1617, 1623, 58 (1989). Assessing arguments understanding historical development contemporary referred now detail. B 14 Civil War, manufactured coal commodities used lighting purposes, course understood way. Dorner, Initial Phases Industry §§2.03-2.06 (American Assn.1996) Dorner). By early years century, areas "proximity field[s],'' Kansas Co., 221 229, 246, 31 564, 567, 55 716 (1911), fuel, until 1920's high-tensile steel electric welding permitted construction high-pressure transport fields distant consumption low cost. Pierce 53. time, then-recent experiments electricity industries dramatically underscored comprehensive Companies proliferated latter half 19th century and, after initial efforts statute level proved unwieldy, governments. Dorner §§2.03, 2.04. Many municipalities honored tenets laissez-faire permitting multiple franchisees single area relying protect interest. results predictable disastrous, "wasteful competition,''5 followed massive consolidation threat monopolistic pricing.6 through essentially industry.7 time became widely marketable commodity, learned chastening experience streets continually torn up lay competitors' pipes, investments systems fractions competition, simply due course. seemed necessity single, franchise source, creation exclusive balanced imposition obligations consuming franchised retailers. Almost soon regulating monopolies, inconsistent While recognizing character nonetheless affirmed regulate, matter concern, direct borders, absent prohibition regulation. Pennsylvania N. Y., 252 23, 28-31, 40 279, 280-282, 64 434 (1920); Kan. Landon, 249 236, 245-246, 39 268, 269-270, 63 577 (1919). At prevents resale Missouri ex rel. Barrett 265 307-310, 44 544, 545-546, 1027 (1924); Virginia, 262 553, 596-600, 43 658, 664-666, 67 1117, rehearing, 263 350, 123, 1144 (1923). Illinois Central Ill. 314 498, 504-505, 62 384, 386-387, 86 371 (1942) (summarizing prior cases distinguishing permissible impermissible gas). never questioned respective jurisdictions. §2.06.8 16 federal finally Congress, too, clearly §1(b) NGA, §717(b), gas'' NGA Power (FPC) begin pipelines. Congress's purpose fill void created earlier decisions prohibiting leaving 516-522, 194-198, (1947). "was drawn meticulous regard exercise handicap dilute way,'' id., 517-518, 195-196; cooperative action agencies'' "protect exploitation hands companies,'' 520, 197 (internal quotation marks omitted); "Congress' unequivocal recognition vital states people, alike, service,'' 521, 198; 334, 780, (1951) ("Direct [of gas] consumptive designedly regulation'' NGA). construed altogether attack Clause: 17 "The declaration [in NGA], though identical made McCarran Act, 59 33, §1011, concerning insurance business, effect equally clear, view [NGA's] setting, legislative history objects, show intention expressly taken over. Cf. Prudential Ins. Benjamin, 328 408, 66 1142, 1342 [(1946) (upholding Act)].'' Panhandle-Indiana, 197. 18 And once again acknowledged 1953 when, wake FPC East 338 464, 70 266, 94 268 (1950), amended "leav[e] jurisdiction'' "companies distribution'' "exclusively States, always intended.'' S.Rep. 817, 83d Cong., 1st Sess., 1-2 (1953); §717(c). 19 years, complementary congressionally approved endured unchanged relevant case. resulting precluded potential suppliers simplicity dual erode encouraged users gas,9 moved real choice able willing state-created buyer. upshot next mandated regulators amidst changes, throughout involved (though longer guaranteed demand) 20 gas.10 typical blend limitation affirmative obligation. Its bore variety requirements: submit annual forecasts future §4905.14 comply range accounting, reporting, disclosure rules, §§4905.14, 4905.15 (1977 Supp.1990), permission securities enter contracts, §§4905.40, 4905.41, 4905.48. "just reasonable'' restricted, §§4905.22, 4905.32, 4909.15, 4909.17, included average cost Admin. Code 4901:1-14 Monthly Record (Nov.1991), together limited return investment.11 exact "a lesser compensation rendered [exacted] [customer] contemporaneous circumstances conditions.'' §4905.33 21 public, discrimination, operations. Industrial 135 St. 166 (1939). They "pick good portions particular territory, select contract, refuse users,'' 413, 168, terminate defined following procedures, §§4933.12, 4933.121 "human needs'' "residential [and] element human welfare [was] predominant factor,'' Pub.Util.Comm'n, Aug. 1, 1989), firm backup ibid., administer specific protective schemes, helping degree low-income despite unpaid bills. 4901:1-18 Nov. 1991). IV 22 consisting protections summarized above, marketer's unbundled raises hurdle ""virtually per se invalidity,''' 647, 1820, 639 (quoting Armco Hardesty, 467 638, 642, 2620, 81 540 (1984)), facial commerce. 23 Conceptually, course, discrimination12 central assumption often itself opinions review simple reason mean removed. case, Jackson's now-famous words: 24 "Our system, fostered every farmer craftsman shall produce certainty he will Nation, home embargoes withhold his exports, foreign customs duties them. Likewise, look producing Nation him any. Such vision Founders; doctrine given reality.'' H.P. Hood Sons, Du Mond, 336 525, 539, 69 657, 665, 93 865 (1949). 25 also, Wyoming Oklahoma, 502 469, 789, 808, 117 (1992) (SCALIA, dissenting) ("Our jurisprudence grew Constitution implicitly established ''); U.S., 2277 (The "state measures impeding marketplace''); Hunt Washington Apple Advertising 432 333, 97 2434, 2445, 53 383 (1977) (referring overriding requirement "common market'''). absence actual prospective disfavored preference, undue it, apply. protects markets participants taxpayers such. 26 Our have, rarely discussed comparability taxed operators arguably markets; closest approach facts occurred Alaska Arctic Maid, 366 199, 929, 227 (1961). 4% salmon territorial waters so-called freezer ships later canning face 1% fish on-shore storage facilities fresh-frozen prevailed holding claimants separate compete another, properly compared proper comparison, held, canners, shipped ships. canners heavily ships, unfavorable latter. 204, 932. discuss disparity types freezers, attempt claimed demonstrated interest entering it. Respondents O.T.1960, 106, pp. 27-33. 27 Maid provides partial analogy small, typified want product. Darr, Strategy Transitional Phase Regulation, Yale J. Reg. 69, (1995) (" [T]he bound what currently appears natural-monopoly relationship''); App. 199 (a supplier, selectively contacts identified potentially profitable customers). geographically distinguished economically comprising benefits. These live sufficiently tight budgets make readily bear risk losing fuel harsh weather. Consolidated Edison N.Y. 676 763, 766, (C.A.D.C.1982) [R]esidential cannot] switch temporarily fuels must endure homes'' interrupted); A. Samuels, Reliability Captive End-Users Commission's Geo. Wash. L.Rev. 718, 749 ("Gas disruptions lasting just few days cause severe risks end-users''). high volume needed investment transaction feasible. Intrastate Regulation: An Alternative Perspective, 407, 409-410 ("Purchasing [from marketers] considerable expertise. exceed quantities gas''). demands arose influence (since none pre-1978 end-users), market's characteristics appear attributable today, assume pricing inadequate 28 circumstance unlike assumed, record reveals about details competitive examination protection, Issue: Atlanta Light Takes Step Abandon Sales Unbundling Services Non-Core Foster June 20, 1996, p. (indicating "unbundling'' accounted 80% commercial Georgia), middling volumes found state-imposed enough offset lower point, Pierobon, Customers: Yellow Brick Road Deregulation?, Utils. Fortnightly, 6, 14, (marketers' California directed attracting "small sector,'' "schools, hospitals, hotels, restaurants, laundromats, master-metered apartments,'' utilities); Salpukas, Choices Gas: Retailers Find Users Puzzled Deregulates, Times, D1, D4 City attempting lure "mom-and-pop restaurants dry-cleaners'' away mixed success). Eliminating sum, There apparently further. opportunities Should accord controlling significance compete, noncompetitive, alone operate? priori answer, present lack strike balance needs markets. 30 Where possible, makes powerful jeopardize continuing Largely response shakeout brought era unbridled principal benefit householders small Union. desirability regimes. Supra, ----. ago (including customers) strictures (1947), notwithstanding revolution, done unbroken authority preserved monopolies.13 clear finds realm reasonably promote preserve. avoiding jeopardy remarkably (1951), Ford Motor Company entered contract Ford's plant Dearborn, Michigan, bypassing company. ordered cease desist making certificate convenience necessity, observed 32 [a]ppellant asserts right cream necessity. Were appellant successful venture, doubt reflected adversely LDC's] over-all whose source LDC]. presents situation Michigan.'' 780. 33 longstanding upholding outright largest users. 336-337, 781; supra preempted Clause).14 34 protecting sense accommodate applying principles. consistently ""never intended cut off legislating subjects relating health, life, citizens, legislation indirectly affect country.''' 852 (1960) Sherlock Alling, 99, 103, 819 (1876)). Just considerations conditions entailing present.15 35 size character, values regulation: counsel caution strain low-volume available. Here position (we assuming) least margins, affecting overall Panhandle, ability competition. 36 sure, happen know. marketers' leave stronger competitors especially boundaries, contraction total increase unit suppose respond subjecting alone, already complicated property quite marketers.16 seems, fact, portend, things, reduction strengthen trying 37 suggestions prove wrong, really significant; them suggestions, pointedly couched supposition. necessarily so, institutionally unsuited gather predictions made, professionally untrained (1996), authorities cited therein; Hunter, Federalism Taxation Multistate Enterprises, Emory 89, (1983) ("It impossible court, resources, determine accuracy town, county, industry''); Smith, Discriminations Against Commerce, 74 Cal. 1203, 1211 (1986) (noting [e]ven expert economists'' difficulty determining favor inhabitants outsiders''). ill-qualified develop dependent predictive judgments, behooves reticent projecting customarily declining engage elaborate analysis real-world effects, Corp., consider subtle compensatory defenses, Oregon Waste Systems, Department Quality Ore., 93, 105, 1345, 1353, counsels taking seller other, uniform sales. 38 Prudence running weakening destroying character. Still less justifiable light investigate analyze beyond anything judiciary match, joined run confront mandate clear. Bush Lucas, 462 367, 389, 103 2404, 2417, 76 648 (Congress "may inform factfinding procedures hearings available courts''). One adopt Black's extreme reticence instance soundness statement "call[s] Congressional investigation, consideration, gives branch government states, acts I think field caution.'' Northwest Airlines Minnesota, 322 292, 302, 950, 955, 88 1283 (1944) (concurrence). fortiori instate *** Accordingly, conclude enterprises considered "similarly situated'' unregulated fail. C 41 suggests "facially discriminates'' 2, 1. respondent points out, question. Carnegie 94-K-526 Bd. 17, 1995), reported Rep. (CCH) ¶402-254, accepted insofar §5727.01 corporate Out-of-state qualify exemption. Because "we deemed transgresses commands,'' argument, V 42 differently Once again, facing one, classifications 80, 1625-1626. "in fields, legislatures possess greatest freedom classification.'' Madden Kentucky, 309 83, 88, 60 406, 84 590 (1940). true, peculiar pass muster Metropolitan Life Ward, 470 869, 874-883, 105 1676, 1679-1684, 751 (1985).17 explain Part IV, event, 45 petitioners' merit otherwise. judgment 46 ordered. 47 concurring. 48 join opinion, thoroughly explains why write note my adherence "negative'' unjustified invention, expanded existing domain. grounds reading says-an authorization Commerce.'' Tyler Industries, Revenue, 483 232, 107 2810, 2828, (1987) part part). 49 previously stated enforce stare decisis self-executing situations: (1) (2) indistinguishable type 210, judgment); Itel Containers Int'l Huddleston, 507 60, 78, 113 1095, 1106, 122 421 (1993) judgment) (collecting cases). contends respect based novel premise: companies. Nothing compels conclusion. broaden scope, intrude sphere traditionally occupied States. dissenting. 51 selling gas-referred "LDCs''-operate competitive. first, sell "noncompetitive product,'' ante, __, practical alternative supply. dominant justifies detailed activities power. __-__. basic subsidize second possesses undoubted manner purchasers afforded consumer's seller. "captive benefits,'' __. Nor significant impact appropriate characterize "unbundled gas,'' composition identical, agree understand assuming, namely economics "bundled viewed products. 54 uncommon International Business Machines 298 131, 56 701, 1085 (1936). bulbs, Cantor Detroit 428 579, 96 3110, 1141 (1976). line, thermostats furnaces, believe special preference furnaces. discern true advantage lose forced find new, nondiscriminatory, methods accommodating regular priced service. recognizes, speculation "real-world effects'' competence. not, therefore, sufficient (1984). Parts respectfully dissent judgment. syllabus prepared Reporter Decisions reader. Timber Lumber 321, 337, 282, 287, 499. gave rise petitioner's October 1990. originally codified Gen.Code §5546-2(6) (Baldwin 1952). recodification 1953, §5739.02(B)(7), remains today. Section 1(b) addition, Hinshaw Amendment §717(c), operate exclusively State. ANR Pipeline F.3d 897, 898, (C.A.D.C.1995). |infra, 156. Pursuant authorizing utilities. 156-157. period, ""[t]he weary interminable wars invariably recoupment victorious battle rates. Investors heavy losses manipulation fly-by-night paper concerns operating "nuisance' Everybody inconvenience city being constantly replaced installation relocation duplicate facilities. major consolidations, threatened municipal chaos.''' §2.03, Welch, Odyssey Gas-A Courage, 500, 501-502 (1939)). Reticence day. When, example, last surviving citizens Brooklyn announced merger 1883, immediately double. §2.03. burgeoned Thomas Edison's patent incandescent lamp 1878. Beginnings §1.06 Assn.1996). Again, unsuccessful statute, mostly government. Swartwout, Current Utility Practice Historical Res. 289, [M]ultiple handed duplicative came being.'' 299. "ruinous short lived.'' overlapping operation Chicago 1882 1905. 1905, however entity chaos, ended paying prices. 300. Arkansas Elec. Cooperative 461 375, (1983), bright-line wholesale older transmitted Reasoning insulated formalistic judge-made 391, 1916, looked instead ""the involved, state, commerce,''' 390, 1915 505, (1942)), concluding interest, (in preemptive action), 394-395, 1917-1918. Electric scope reasoning implies matter, immune ordinary jurisprudence, extent implied immunity law. undermines cases' buying retail, reaffirm disturb relevance wholesale/retail construing jurisdictional provisions statutes below. 380, 3, 1910, 3; Schneidewind 293, 300-301, 1145, 1150-1151, 316 (1988) ("The confers jurisdiction resale''). complete description policy, modifications prompted, Alabama: Ala.Code §§37-4-1(7)(b) (Supp.1996); §§37-1-80 37-1-105 (1992 Supp.1996); Alaska: Stat.Ann. §§42.05.141, 42.05.291, 42.05.990(4)(D) (1989 Supp.1995); §§42.05.010-42.05.995; Arizona: Ariz.Rev.Stat.Ann. §§40-201.4, 40-203 §§40-201 40-495; Arkansas: Ark.Code §§23-1-101(4)(A)(i), 23-4-101 (1987 §§23-1-101 23-4-637; California: Util.Code §§216, 701 (West 1975 §§201-2101; Colorado: Colo.Rev.Stat. §§40-1-103(1)(a), 40-3-101 (1993); §§40-1-101 40-8.5-107 (1993 Connecticut: Conn. Gen.Stat. §§16-1(a)(4), (9), 16-6b 1988 §§16-1 16-50f; Delaware: Del.Code Ann., Tit. §§102(2) generally, §§101 District Columbia: D.C.Code §§43-203, 43-212 (1990); §§43-101 43-1107 (1990 Florida: Fla. §§366.02(1), 366.03 Supp.1997); §§366.01 366.14 1968 Georgia: Ga.Code §46-2-20(a) (1992); §§46-2-20 46-2-94 Hawaii: Haw.Rev.Stat. §§269-1, 269-6, 269-16 (Michie 1992 §§269-1 269-32; Idaho: Idaho §§61-129, 61-501, 61-502 (1994); §§61-101 61-714; Illinois: Comp. ch. 220, §§5/3-105, 5/4-101, 5/9 101 §§5/1-101 5/10-204; Indiana: Ind.Code. §§8-1-2-1, 8-1-2-4, 8-1-2-87 §§8-1-2-1 8-1-2-127; Iowa:Iowa §476.1 Supp.1996);see §§ 476.1 476.66 1991 Kansas: §§66-104, 66-1, 6-1, (1985 Kentucky: Ky.Rev.Stat. §278.010(3)(c) 1992); generally§§278.010 278.450; Louisiana: La.Rev.Stat. §33:4161 1988); §§33:4161 33:4174, 33:4301 33:4308, 33:4491 33:4496 Maine: Me.Rev.Stat. 35-A, §§102, 301 (1988 Supp.1996-1997); §§101-120; Maryland: Md. Ann.Code, Art. §§1, 2(o) (1991); §§1 27A, 54K, (1991 Supp.1994); Massachusetts: Mass. Gen. Laws 164:1, 164:93, 164:94 164, 128;Michigan: Mich. §§460.6-460.6b §§460.1 460.8; Minnesota: Minn.Stat. §§216B.02(4), 216B.03 §§216B.01 216B.67 (1994 Mississippi: Miss.Code §§77-3-3(d)(ii), 77-3-5 §§77-3-1 77-3-307; Missouri: Mo.Rev.Stat. §§386.020, 393.130 §§386.010 386.710, 393.010 393.770; Montana: Mont.Code §§69-3-101, 69-3-102, 69-3-201 (1995); §§69-3-101 69-3-713; Nebraska: Neb.Rev.Stat. §§14-1103 14-1103.1, 19-4601 19-4623 Nevada: Nev.Rev.Stat. §704.020(2)(a) §§704.001 704.320, 704.755; Hampshire: N.H.Rev.Stat.Ann. §§362:2, 374:1, 374:2 (1995);see §§378:1 378:42; Jersey: §48:2-13 §§48:2-13 48:2-91, 48:9-5 48:9-32 1969 Mexico: N.M. §§62-3-3, 62-6-4, 62-8-1 §§62-1-1 62-13-14; York: Law §65 (McKinney 1989);see §§30 52, 77 1989 Carolina: N.C. §§62-3(23), 62-30 §§62-1 62-171; Dakota: N.D. Cent.Code §§49-02-01 , 49-02-02, 49-04-02 (1978 Supp.1995);generally 49-07-06; Ohio: §§4905.03(A)(6), 4905.04, 4905.22 §§4901.01-4909.99 Oklahoma: Okla. Stat., §§15, 152, 160.1 Oregon: Ore.Rev.Stat. §§757.005 757.020, 756.040 §§756.010 757.991; Pennsylvania: Pa. Cons.Stat. 501, 1301 (Purdon 1979 2107; Rhode Island: R.I. §§39-1-2(7), 39-1-3(a) §§39-1-1 39-2-19 South S.C.Code §§58-5-10(3), 58-5-210 (1976 §§58-5-10through 58-5-1070;South S.D. Codified §§49-34A-1, 49-34A-4, 49-34A-6 §§49-34A-1 49-34A-78; Tennessee: Tenn.Code §§65-4-101, 65-5-201 §§65-4-101through 65-5-205 Texas: Tex.Rev.Civ. 6050, §1(a)(4), 6053 (Vernon Arts. 6050 6066g 1962 Utah:Utah §§54-2-1(8), 54-3-1, 54-4-1 seegenerally §§54-2-1 54-4-30; Vermont: Vt. 30,§215 (1986); Virginia: Va.Code §§56-232, 56-234 §§56-232 56-260.1 (1995 Washington: §§80.04.010, 80.28.020 §§80.04.010 80.04.520, 80.28.010 80.28.260; §24-2-1 §§24-1-1through 24-5-1 Wisconsin: Wis. §§196.01(5), 196.02, 196.03 §§196.01 196.98; Wyoming: Wyo. §§37-1-101(a)(vi)(D), 37-2-112 §§37-1-101 37-6-107. Amended Substitute House Bill 476, signed and/or related effective alternatives, §4929.04, H.R. §1, Sept. enacted oral unregulated, negotiated rates, contention, price-regulated "facial discrimination'' scheme, indicated nondiscriminatory invalid words Pike test, excessive relation putative Bruce Church, Inc., 397 137, 142, 844, 847, 174 (1970). line strands analysis, 2084, several purported test itself) turned whole regulations, Pike, 145, 849 (declaring packing "virtually illegal'' performed in-state); Kassel Freightways Del., 450 662, 677, 1309, 1319-1320, 580 (1981) (plurality Powell, J.) invalidated truck-length "seems hoped highways deflecting traffic''); 679-687, 1320-1325 (Brennan, (emphasizing protectionist purpose); Regan, Protectionism: Making Sense Dormant 1091 Nonetheless, laws genuinely impose disparate interests, undermined compelling uniformity Bibb Navajo Freight Lines, 359 79 962, 1003 (1959) (conflict governing truck mud flaps); Southern Pacific Arizona Sullivan, 325 761, 1515, 89 (1945) (train lengths); CTS Dynamics America, 481 1637, 1649, ("This regulations''); L. Brilmayer, Conflict §3.2.3, 144 -148 (2d ed.1995) (discussing conflicting Clause). apportionment plays assuring unjustly multistate taxation. Oklahoma Jefferson 514 115 1331, 1338, 131 261 "internal'' "external'' consistency tests taxes). Of sense, malapportionment briefed version continues issue. note, language Panhandle-Indiana creating exemption, unchanged. —(Compare 821 §717(b) (1994).) today's altered structure, appeals occurs merely transports in-state. Cascade 955 1412, 1414-1422 (C.A.10 887 1295, 1299-1301 (C.A.6 494 1079, 110 1806, 937 883 117, 121-122 (C.A.D.C.1989), 1807, (1990). correctness decisions. drawing geographical distinctions otherwise situated, scrutiny goal. Philadelphia Jersey, 437 617, 626-628, 98 2531, 2536-2538, 475 (1978); Dean Milk Madison, 340 349, 353-354, 295, 297-298, 329 (1951). personal 88% value, §5727.111 25% §5711.22(D). assessment expenses Commission, §4905.10 (1991), Counsel, §4911.18. Moreover, gross receipts 4.75% §5727.38 none. Independent tax, §5733.01, §5733.09(A). customers; line. Ward Alabama discriminated premiums McCarran-Ferguson §§1011-1015, field. 880, 1682-1683. Alabama's classification "neither furthered [statute] 883, 1684.

Classification Label: 7