Legal Document

430 U.S. 551 97 Supreme Court Reporter 1386 51 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 631 NATIONAL GEOGRAPHIC SOCIETY, Appellant,v.CALIFORNIA BOARD OF EQUALIZATION. Number 75-1868. Argued Feb. 23, 1977. April 4, Decided Syllabus Appellant Society, a nonprofit corporation with headquarters in the District of Columbia, which maintains two offices California that solicit advertising for Society's magazine but perform no activities related to mail-order business sale from Columbia maps, atlases, globes, and books, challenges constitutionality California's use tax, as applied activities, requires every retailer engaged State making sales tangible personal property storage, use, or other consumption collect purchaser tax lieu imposed on local retailers. Orders items are mailed directly appellant's coupons forms enclosed announcements Society members subscribers order contained magazine. Held: imposition use-tax-collection liability operation does not violate Due Process Clause Fourteenth Amendment Commerce since continuous presence provides sufficient nexus between appellant justify appellant. The out-of-state seller runs risk double taxation consumer's identification resident taxing is obvious becomes liable only by failing refusing it consumer. Nor, contrary contention, material there relationship activity offices, without regard nature offices' they had advantage same municipal services would have if their included assistance operations. Pp. 555-562. 16 Cal.3d 637, 128 Cal.Rptr. 682, 547 Pacific Reporter, 2nd 458, affirmed. Arthur baron Hanson, Washington, D. C., Philip M. Plant, Deputy Atty. Gen., San Francisco, Cal., appellee. Mr. Justice BRENNAN delivered opinion Court. 1 National Geographic scientific educational copy monthly magazine, Magazine. However, books. these Deliveries made mail Maryland offices. Payment either cash after billing following receipt merchandise. Such residents during period involved this suit aggregated $83,596.48. 2 Rev. & Tax. Code § 6203 (West Sup.1976) 'retailer state state' upon held subject statute "retailer state", because its maintenance brings within definition under 6203(a) includes "(a)ny maintaining . an office ." 642, 685, 460-461 (1976). Section 6204 makes any taxes required be collected regardless whether he collects tax.1 See Bank America versus Bd. Equalization, 209 Cal.App.2d 780, 793, 26 348, 355 (1962). 3 question presented case at California2 provided support pursuant §§ 6204, measured $83,596.48 merchandise Maryland. violated neither Clause, 458 (1976).3 We noted probable jurisdiction. 429 883, 232, 50 163 affirm. 4 * All impose also corollary bought out protect revenues put retailers competitive parity exempt tax. H.R.Rep.No.565, 89th Cong., 1st Sess., 614 (1965). such schemes settled. Henneford Silas Mason Co., 300 577, 581, 57 524, 526, 81 L.Ed. 814 (1937); Monamotor Oil company Johnson, 292 86, 54 575, 78 1141 (1934).4 5 But limitation so avoid problems due process might arise extension interstate commerce, see, e. g., Nelson Sears, Roebuck 312 359, 363, 61 586, 588, 85 888 (1941); supra, 95, 578, all constitutional difficulties. necessarily burden collecting seller; impracticability collection multitude individual purchasers obvious. Miller Bros. Maryland, 347 340, 343, 74 535, 538, 98 744 (1954). may constitutionally payment sold State. concluded, based survey relevant decisions Court, 'slightest presence' established duty pay court stated, Cal.3d, 644, Cal.Rptr., 686, 462: 6 'We satisfied above cited principle can distilled we thus hold: Where conducts substantial imposing seller's connection exclusively means instruments slightest independent through commerce will permit post failure do so.' (Emphasis supplied.) 7 Our affirmance understood implying agreement court's presenceh standard nexus. Appellant's solicitation employees assigned those range $1 million annually, Tr. Oral Arg. 6, establish much more than expression connotes. rests our conclusion adequately 'nexus' renders obligations 6204.5 This supported several decisions. 8 requisite was shown when were arranged agents working State, Felt Tarrant Gallagher, 306 62, 59 376, 83 488 (1939); General Trading Tax Comm'n, 322 335, 64 1028, 88 1309 (1944), cases retail store outlets sellers. supra; Montgomery Ward, 373, 593, 897 (1941). In Scripto, Incorporated Carson, 362 207, 80 619, 660 (1960), necessary basis found Georgia-based '10 wholesalers, jobbers, 'salesmen' conducting Florida forwarding resulting orders Atlanta shipment ordered goods,' Id., 211, S.Ct., 621, although place Florida, having regular full-time there. 9 Standard Pressed Steel Washington Dept., 419 560, 95 706, 42 719 (1975), instructive. That direct gross receipts foreign customer, duties. Although 'a vice doing multiple .,' id., 563, 709, see concern present involved, single employee, engineer whose his home primary responsibility consult Washington-based customer regarding anticipated needs supplier's product, relation producing It particularly significant purposes characterized 'frivolous' argument in-state thin inconsequential reasonable protection benefits conferred employee 'made possible realization continuance valuable contractual relations (the customer).' U.S., 562, 708. Other fairly apportioned, nondiscriminatory been sustained Complete Auto Transit, Brady, 274, 1076, 326 (1977); Motors Corporation 377 436, 84 15648 12 (1964); Northwestern Cement Connesota, 358 450, 79 357, 421 (1959); Memphis Gas Stone, 335 80, 68 1475, 92 1832 (1948); Wisconsin Judge C. Penney 311 435, 444, 246, 249, 267 (1940). 10 validity enjoying even stronger. Norton Illinois 340 534, 537, 71 377, 380, 517 (1951). taxation. self-evident. refusign Thus, sole statutes like administrative one it. Compare McLeod Dilworth 327, 1023, 1304 (1944) (sales tax), supra. American Neill, 380 451, 454-455, 1130, 1132-1133, 14 11 Two fact patterns deficient highlight significance inquiry enjoys $Miller (1954), struck down assessment against Delaware near border States. over-the-counter occasionally shipped goods truck into advertised newspaper radio, some advertisements reached residents. These sometimes supplemented 'flyers' customers, whom lived concluded could satisfy requirement. addition almost total lack contacts Marylanders went make purchases, did go obviously know over counter transported prior use. Scripto 212, 622. Bellas Hess, 386 753, 87 1389, 18 505 (1967), customers common carrier mail. subjected national house centered Missouri, mailorder Hess owned Illinois, outlets, representatives, telephone listings, solicitors advertise television, billboards, newspapers. communicated potential mailing catalogues throughout States, including twice year effort 'flyers.' Hess' Missouri plant, sent carrier. Bells that, constitutionally, solely Court's carefully underscored, however, 'sharp distinction sellers solicitors, taxing) (like Hess) who communicate part general business.' 758, 1392. clearly falls former category. II 13 argues, mail, played activity, therefore controlled Hess.6 argues words must exist sought taxed disagree. However fatal 'showing particular transactions re dissociated 380; Connecticut Gen. Life insurance 303 77, 58 82 673 (1938), dissociation bar duty.7 true relied appellant, proof operations business. Sears maintained stores qualified Sears' sales, times assisted processing orders. holding use-tax not, turn fact. holding, rather, departmentalized separately administered preclude finding companion Roebuck, somewhat similar pattern. There here again disagree crucial decision. Even if, Ward regarded equivalent supply vp (1939), (1960) (local commission 'salesmen'); (traveling salesmen State); Bowman Continental 256 41 606, 65 1139 (1921) distributor dealer); (1934) refining, distributing facilities), test requiring relates carried simply facts demonstrate 'some definite link, minimum connection, $'the and) person seeks tax.' Maryland,, 344-345, 539. added.) Here activites, fire police protection, $Montgomery perations generated taxes. reliance misplaced. respect theduty taxwereof goodssoldtoresidents Marylandat Miller'sDelaware store, Millermadeoccasionaldeliveries Moreover, thelackof certainty themerchandisesoldover thecounter militated adequate purchases. 212-213, relational defect obviated relevance retailer. 15 conclude State's act collector Affirmed. 17 THE CHIEF JUSTICE REHNQUIST took consideration decision case. BLACKMUN, concurring result. 19 N Dec. Immigration Nationality Decisions am convinced facile ground 'the use', ante, 559, 'lack page, proper acceptable distinction. thought factual difficulties Miller, focus case, own delivery truck. 341-342, 537. Indeed, stipulated taxable period, t paid deliver $9,500 worth ($8,000) truck, $1,500 542 n. 5. exhibited uncertainty destination goods. 20 appears find additional 'sold Miller's store,' 561. If intends thereby rest loss follow reasoning. By definition, short, easily explained away. 21 seems me, another instance where past area fully consistent. 326, development immediate predecessor, Colonial Pipeline Traigle, 100, 101, 1538, 1539, 44 (1975). 22 event, myself accord result If, suspect today consistent let go. sections Cal.Rev. Tax.Code provide: Supp.1976). 'Except Sections 6292 6293 state, exempted Chapters 3.5 part, shall, time or, then hereunder, taxable, give therefor manner form prescribed board. "Retailer used preceding section following: '(a) Any maintaing, occupying, using, permanently temporarily, indirectly, subsidiary, agent, whatever name called, office, distribution, sample room place, warehouse storage 1970). 'The amount unreturned representation constitutes debts owed state.' 'periodical.' 6362. Francisco Los Angeles 1956. Each originally staffed salesman secretary, each has increased personnel four. basic function 640, 683-684, P.2d, 459-460. Sales aggregate about annually. 6. During nine-month August 1, 1963, May 1964, paid, books totaling $679.20 $2,161.85 office. unnecessary consider determining sufficed view prove 641 684 460 view. exceeds $180,000 covers nine-year ibid., Board Equalization years $3,838.76, interest penalties. protest sued refund Superior recovered judgment. Appeal, First Appellate District, 46 Cal.App.3d 470, 121 77 reversed assessment. necessity legislation Association Administrators 73d 76th Congresses extend certain transactions. 613-615 Some 45 require Brief Direct Mail/Marketing Assn. Amicus Curiae 4. society merely parking lot. law fell defined 6203(a). conceded oral reversal absence 29, 34-35. Contrary argument, registered determinative application 6204. (1944); 628 (1939).

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