Legal Document

466 U.S. 353 104 S.Ct. 1837 80 L.Ed.2d 356 Joanne LIMBACH, Tax Commissioner of Ohio, Petitionerv.The HOOVEN & ALLISON COMPANY. No. 83-96. Supreme Court the United States Argued Feb. 22, 1984. Decided April 18, Syllabus Respondent manufacturer cordage products, in filing its Ohio ad valorem personal property tax returns for 1976 and 1977, deducted from total value inventory imported fibers that were stored their original packages future use manufacturing process. In taking this deduction, respondent relied on Hooven Allison Co. v. Evatt, 324 652, 65 870, 89 L.Ed. 1252 (Hooven I), a case involving same parties as instant case, well similar property, wherein it was held subjecting question there to would violate Import-Export Clause. Petitioner disallowed deduction accordingly increased assessments, relying Michelin Tire Corp. Wages, 423 276, 96 535, 46 495, where assessment State's nondiscriminatory an tires maintained at wholesale distribution warehouse not be within Clause's prohibition against States' levying "any Imposts or Duties Imports." The Board Appeals reversed, ruling petitioner collaterally estopped by decision I rejecting respondent's argument implicitly overruled I. affirmed. Held: 1. original-package does This specifically abandoned concept Clause constituted broad all forms state taxation imports, changed focus cases whether goods have lost status imports sought imposed is "Impost Duty." I, having been decided under doctrine, among progeny Low Austin, 13 Wall. 29, 20 517, which expressly Michelin. Thus, inconsistent with Michelin, although must regarded retaining no vitality since decision, extent espoused doctrine. Pp. 357-3612. 2. barred collateral estoppel assessments. 361-363. (a) Collateral applied here matter federal, state, law, thus insulated review asserted ground because did overrule state-law principles bar imposition fibers. concerns federal issues contention court disregarded constitutional Court. 361-362. (b) While parties, tax, containers are years involved not. Because difference years, controlled Sunnen, 333 591, 68 715, 92 898, income earlier facts, questions, but different conclusive collateral-estoppel doctrine certain intervening decisions made manifest error result reached Board. Failure follow Sunnen's dictates lead very inequality admonition designed avoid. 362-363. 4 St.3d 169, 447 N.E.2d 1295, vacated remanded. Richard C. Farrin, Columbus, petitioner. Michael Nims, Cleveland, respondent. Justice BLACKMUN delivered opinion 1 (1945) passed upon constitutionality Ohio's application still packages. unfavorable State. asks us sustain like fibers, packages, manufacturer. presents, primarily, issue preclusion framed terms estoppel. 2 * Company (Hooven) domestic products natural These fibers—hemp, sisal, jute, manila, like—are grown imported. Upon arrival country, transported rail Hooven's plant Xenia, they 3 accord Rev.Code Ann. § 5711.16 (1980), timely filed 1977. those returns, listed these "imports," inventory. following written explanation given: "The inventories represent taxpayer foreign countries, warehouses Xenia prior being used cordage, when removed therefrom placed production line factory, such so used, package, thereupon transferred Goods Process included taxable City." Joint Record 11. 5 Court's 1945 Court, closely divided vote, ruled raw materials violation Constitution, Art. 10, cl. 6 however, each two question, added back into manufacturing. liability accordingly, increased. 7 review, sustained She rejected arguments advanced Hooven, additional that, she 495 (1976). 8 then appealed Appeals, advancing issues. That reversed Commissioner. App. Pet. Cert. A-10. It noted I; taxability also type identical has "reversed" "and thus, force effect law"; estoppel, litigation exemption improperly unavailable." A-23. Commissioner's had reach consider issues, observing lacked jurisdiction do so. A-20; see S.S. Kresge Bowers, 170 St. 405, 166 139 (1960), appeal dism'd, 365 466, 81 712, 704 (1961). 9 notice doing order preserve pressing issue. affirmed Appeals. Lindley, 1295 (1983). court, unanimous per curiam opinion, prohibited assessing taxes acknowledged presence hesitated 29 [20 517] (1872). observed, "action—or inaction—must accorded effect, least regard intent reappraising I." St.3d, 172, N.E.2d, 1298. "decline[d] address [federal] raised appeal." Id., 173, 1299. 10 We granted certiorari. 464 813, 66, 78 II 11 supra, Field, unanimously enunciated "original-package" perhaps first time, Brown Maryland, 12 Wheat. 419, 442, 678 (1827). Clause, country subject while remaining unbroken unsold, hands importer. importer challenged Georgia's tubes warehouse. challenge tires.1 found history nothing suggest kind longer import transit exaction objectionable Framers. could affect Federal Government's exclusive regulation commerce fall such. Neither interfere free flow States. excepting some impact couched every only laying "Imposts Duties," historically connoted exactions directed commercial activities concluded reliance century Austin "upon dictum . misplaced." U.S., 283, S.Ct., 539. Chief Taney's License Cases, How. 504, 256 (1847), carefully analyzed, concluding misread Low. "[P]recisely contrary" reading given Low, Cases authority "that Clause." 301, 548. followed, concluded, "Low wrongly decided" "therefore be, is, overruled." Ibid. directly cited once footnote stated unnecessary assertion Congress consent even See n. 13, 548, 13. we acknowledge latter strongly implies foundation former seriously undermined.2 apparent, indeed clear, overruling adopted fundamentally approach claiming protection said precisely much Washington Revenue Dept. Association Wash. Stevedoring Cos., 435 734, 98 1388, 55 682 (1978): 14 "Previous assumed exports importing exporting processes banned So long retained enjoyed immunity taxation. 15 "Michelin initiated cases. ignored simple imports. Instead, analyzed nature determine 'Impost Duty.' 279, 290-294 [96 537, 543-44]. Specifically, analysis examined offended any three policy considerations leading Clause: 16 'The Framers Constitution alleviate main .: Government speak one voice regulating relations governments, tariffs, might relations, implemented consistently power; revenues major source revenue should diverted States; harmony disturbed unless seaboard States, crucial ports entry, citizens other taxing merely flowing through situated favorably geographically.' 285-286 540-41] (footnotes omitted). 17 none policies. therefore Georgia Duty,' meaning ." 752-754, 1400-01. 18 id., 762, 1405 (opinion concurring part result). 19 To repeat: think clear fell new instead, P. Hartman, Limitations State Local Taxation, 5:4 (1981); Hellerstein, Taxation Court: Toward More Unified Approach Constitutional Adjudication?, 75 Mich.L.Rev. 1426, 1427-1434 (1977). Cf. Montana 440 147, 99 970, 59 210 (1979). until it, too, later Duty" Although decision. conclusion retains current validity respect error. A contrary return may misunderstanding, espouses overruled. III A. 21 argues 22 reject suggestion confronted, present posture claim distinguished law. concerned tax. issue, barrier. certainly viewed it. referred both described before contested "may constitutionally assessed" light 171, 1297. And precepts set forth 898 (1948), case. From premise, moved judgment levy "barred estoppel." 23 therefore, perceive overtones stretch imagination, serve insulate here. then, reviewable Deposit Bank Frankfort, 191 499, 24 154, 48 276 (1903); Stoll Gottlieb, 305 165, 134, 83 (1938); Toucey New York Life Ins. Co., 314 118, 129, 1, 62 139, 141, 86 100 (1941). B move argument. true, course, true taxed 1977 identifies 1938, 1939, 1940 same. dispute this. Tr. Oral Arg. 12. Collateral-estoppel concepts, initial appeal. 25 this, pertinent and, indeed, controlling. licenses patent owner his assignment interests royalty agreements wife. An 602-607, 721-24. reason applying stronger than repudiated pronouncement. 26 apply immune forever early based now legal taxpayers liabilities determined basis 599, 720. 27 Petitioner, asserting increases IV 28 without developed factual record. takes position entitled opportunity demonstrate facts significantly controlling suggests mingled domestically manufactured arranged sale delivery; moreover, finished goods. Here, according sale, goods, destined incorporation further asserts record developed, will examine provision invoke, including Foreign Commerce Any development record, take place courts evaluated there. Accordingly, make merits claims. vacated, remanded proceedings opinion. 30 ordered. respondents there, county Assessors, cross-petition certiorari, courts' corrugated shipping cartons review. 2, 538, Since twice. California Retail Liquor Dealers Assn. Midcal Aluminum, Inc., 445 97, 111, 937, 946, 63 233 Kleppe Mexico, 426 529, 540, 2285, 2292, 49 34 citation bears

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