Legal Document

429 U.S. 68 97 Supreme Court Reporter 219 50 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 227 James or Haw. Hawai‘i KFH45 A2 TULLY, Jr., et al., Appellants,v.GRIFFIN, INC. Number 75-831. Argued Oct. 4, 1976. Decided Nov. 9, Syllabus The Tax Injunction Act, 28 Code KF62 § 1341, which prohibits federal district courts from enjoining the assessment, levy, collection of state taxes where "a plain, speedy and efficient remedy may be had in such State," held to bar appellee Vermont furniture store's suit Federal District for injunctive relief against allegedly unconstitutional assessment New York sales on appellee's customers, since provides a "plain, efficient" means redress constitutional claims while preserving right challenge amount due. Despite statutes providing that judicial review an administrative determination shall taxpayer's only remedy, other procedures, including declaratory judgment action, used when claim is tax unconstitutional, Ammex Warehouse company versus Gallman, 414 802, 94 163, 38 39. Moreover, need not accept as binding price challenging constitutionality but can obtain preliminary injunction court will toll running 90-day period within at hearing. Pp. 73-77. D.C., 404 F.Supp. 738, vacated remanded. Thomas Pacific KF135 P2 Zolezzi, Albany, N. Y., appellants. R. Paul Wickes, Bennington, Vt., appellee. Mr. Justice STEWART delivered opinion Court. 1 question this case whether out-of-state corporation seeks York's it. does provide issued restraining taxes. 738. We noted probable jurisdiction appeal, 424 907, 96 1099, 47 310. 2 * appellee, Griffin, Inc., operates store Arlington, six miles York-Vermont border. It advertises radio television newspapers serve Albany-Schenectady-Troy area York, makes substantial its place business customers State. regularly delivers buyers own trucks, employees also enter occasion repair it has sold. 3 In February 1973, Department Taxation Finance determined Griffin was "doing business" thus required collect local customers. sent examiner audit Griffin's records, refused consent. Little more happened until March 1975, reaffirmed position advised another would soon dispatched audit. responded by filing Vermont, alleging generally any violate Commerce, Due Process, Equal Protection Clauses Constitution, asking relief. A three-judge convened. 4 After again denied access "Notice Determination Demand Payment Sales Use Taxes Due." This necessity estimate, demanded pay $218,085.37 back taxes, interest, penalties.1 moved prevent steps being taken stay could contest shown Notice Determination.2 defendant officials filed cross-motion dismiss action lack jurisdiction, claiming barred provides: 5 "The enjoin, suspend restrain levy under State law State." 6 rejected defense, ruling remedy." 7 reaching conclusion, considered first availability direct Determination. Under Law 1138(a), taxpayer 90 days receipt notice apply hearing before Commission.3 Commission's decision after judicially reviewable "for error, illegality unconstitutionality reason whatsoever" proceeding Article 78 Civil Practice Rules.4 Before seek review, however, he must either prepay post bond assessment. found lacked do this. Although gross assumed changed unless submitted ruled should "tur(n) over books records whose authority invalid," further questioned entertain if audited. F.Supp., 743-745. 8 then 3001 Rules.5 viewed possible avenue insufficiently because N.Y. 1140 face seems limit liability procedure discussed above.6 took note holding proceedings are fact exclusive plaintiff concluded issue "cloak(ed) . some uncertainty." Even get relief, held, contacts with were so "minimal" "it unfair make litigate unfamiliar forum." Finally, expressed "reservations" about ability pending court's suit. 745-747. On basis reasoning granted II 9 equitable duty refrain interfering State's revenue except cases asserted might otherwise lost. See Hillsborough Cromwell, 326 620, 622-623, 66 445, 447-448, L.Ed. 358; Great Lakes Dredge & Dock Huffman, 319 293, 297-299, 63 1070, 1072-1073, 87 1407; Matthews Rodgers, 284 521, 525-526, 52 217, 219-229, 76 477. policy restraint long been reflected confirmed congressional command 1341 no As frequently note, statute roots equity practice, principles federalism, recognition imperative administer fiscal operations. "Interference internal economy administration inseparable assaults validity taxation, necessarily attends injunctions, interlocutory final, These considerations moment have persuaded deny especially state, acting authority, set up adequate securing recovery illegally exacted tax." supra, U.S., 298, S.Ct., 1073. Moe Salish Kootenai Tribes, 425 463, 1634, 48 96; 447-448; 219. 10 lose their force, become "inefficient," merely travel across line order resist sought imposed. If mere go invoke jeopardize assert rights. To Court's "unfair" undermine much force 1341. 11 turn basic inquiry there way press answered part summary affirmance three years ago case, Commission assessed alcoholic beverage, tobacco, two companies sold cigarettes liquor persons leave Canada. brought Court, them violated Commerce Import-Export Constitution. dismissal action. Ammex-Champlain Corporation 72 Civ. 306 (NDNY, Mar. 15, 1973) (unreported). "(t)here ample employed imposition tax. Accordingly, present arguments supreme application these Ammex's export operations unconstitutional." 12 correctness placed squarely us Jurisdictional Statement appellants case. therefore controlling precedent, re-examined Hicks Miranda, 422 332, 343-345, 95 2281, 2288-2290, 45 223. Since, affirmance, here "of same precedential value treating merits." Edelman Jordan, 415 651, 671, 1347, 1359, 39 662. But having now full opportunity consider briefing argument, we adhere our 13 fully supported decisional law. provisions taxing consistently judgment, unconstitutional. Slater N.Y.2d 1, 377 N.Y.S.2d 448, 449, 339 North Eastern Reporter, 2nd 863, 864 (1975); re First Nat. City Bank Admin., 36 87, 92-93, 365 493, 497, 324 861, Richfield Oil Syracuse, 287 234, 239, 219, 221 (1942); Dun Bradstreet, Incorporated 276 198, 206, 728, 731-732 (1937); Hospital TV Sys., Comm'n, 41 A.D.2d 576, 603 (1973). Thus, remain correct, announced judges "who familiar intricacies trends practice," Bishop Wood, 426 341, 346, n. 10, 2074, 2078, 684, quoting 630, 451, 358, Huddleston Dwyer, 322 232, 237, 64 1015, 1018, 88 1246. 14 clear preserve due litigating all validly words, rough estimate 15 Attorney General his brief oral argument represented hearing.7 believe court, sua sponte, award proper 16 cited score, none. contrary, speaks "in action" certain conditions met. N.Y.Civ.Prac. 6301 (McKinney 1963). There suggesting actions general, see, e. g., Public Serv. commission Norton, 304 522, 529, 109 705, 708 (1952); Opoliner Joint Queensview Housing Enterp., 1076, 206 681 (1960), several done involving See, Stacy State, 82 Misc.2d 181, 368 448 (Sup.Ct.1975) (sales tax); Glen Cove Theatres, Cove, 231 747 (Sup.Ct.1962). N.Y., N.E.2d, (permanent approved tax). uncertainty concerning less than "plain" see 625, precedents convincingly demonstrate fears unfounded.8 17 Since claims, Its granting motion vacated, remanded instructions complaint. 18 ordered. later withdrew initial demanding payment $298,580.59. 1138(a) 1975). 1975) "(a) return article filed, incorrect insufficient, information available. necessary, estimated external indices, stock hand, purchases, rental paid, number rooms, location, scale rents charges, comparable type accommodations service, factors. given person liable Such finally irrevocably fix whom assessed, ninety giving determination, hearing, redetermine same. give assessed. whatsoever seventy-eight civil practice rules therefor made four months determination. instituted reviewed, penalties interest thereon, any, deposited undertaking, surety authorized transact superintendent insurance solvency responsibility, justice approve effect dismissed petitioner costs charges accrue prosecution proceeding, option applicant undertaking sum sufficient cover thereon stated plus event deposit condition precedent application." N.Y.Civ.Prac.Law, 78, 7801 seq. Civ.Prac.Law, 1974) render final rights legal relations parties justiciable controversy claimed. ." remedies provided sections eleven hundred thirty-eight thirty-nine available imposed article; proposed refund enjoined money received, rules." acknowledging power circumstances, remains free, course, oppose particular conclude decide efficient."

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