Legal Document

435 U.S. 444 98 Supreme Court Reporter 1153 55 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 403 Commonwealth of MASSACHUSETTS, Petitioners,v.UNITED STATES. Number 76-1500. Argued Dec. 6, 1977. Decided March 29, 1978. Syllabus As part a comprehensive program to recoup the costs federal aviation programs from those who use national airsystem, Congress enacted Airport and Airway Revenue Act 1970, which imposes an annual "flat fee" registration tax on all civil aircraft, including owned by Federal Government, that fly in navigable airspace States. The also 7-cent-per-gallon aircraft fuel, which, together with 5-cent-per-pound tire 10-cent-per-pound tube tax, was intended reflect cost benefits noncommercial general but were exempted tire, taxes. After collected under protest it respect helicopter used exclusively for police functions, Massachusetts instituted this refund action, contending may not constitutionally impose directly affects essential traditional state function operating force. District dismissed complaint ground, inter alia, user fee did implicate constitutional octrine implied immunity government taxation. Appeals affirmed. Held: does violate Pp. 453-470. (a) A State enjoys no nondiscriminatory revenue measure operates only ensure each member class special beneficiaries pays reasonable approximation its fair share Government. 454-463. (b) Even if feasible Government recover through charges measurable amounts facilities, rather than imposing flat fee, so long as taxes imposed do discriminate against are based State's structured produce revenues will exceed total supplied, there can be substantial basis claim using taxing powers control, unduly interfere with, or destroy ability perform services. 463-467. (c) Here, (1) is nondiscriminatory, since applies private users airways, operated States; (2) is, 7-cents-per-gallon fuel receive programs, since, even though give weight every factor affecting appropriate compensation airport airway use, geared whereas designed factors level navigational facilities; (3) excessive relation have fees proved insufficient cover outlays States, being exempt pay far less airways. 467-470. 548 Reporter, 2nd 33, Terence Pacific KF135 P2 O'Malley, Boston, Mass., petitioner. Allan Atlantic Ryan, Jr., Washington, D. C., respondent. Mr. Justice BRENNAN delivered opinion Court.* 1 1970 26 Code KF62 § 4491.1 question presented case whether applied violates We hold not. 2 * Since passage Air Commerce 19 44 Statutes-at-Large 568, has expended significant funds develop strengthen integrated airsystem make air transportation safe practical. It established, developed, improved wide array facilities services benefit flying Nation's airspace,2 made grants local governments assist planning developing airports. 3 In after extended study concluded aviation, while significant, had been sufficient permit capacity cope satisfactorily current projected growth transportation. To remedy situation, two laws, Development (Development Act), 84 219, (Revenue 236, constitute substantially expand improve system over decade beginning July 1, 1970. Act, provided vastly increased expenditures both development further expansion More importantly present purposes, adopted several measures benefited airways would, extent, financed users.3 therefore, first time, increased, aviation. conceived these calculated they would defray increasing percentage fiscal years 1979.4 assure expansion, improvement, maintenance system, Trust Fund created, amount generated during 1970's, paid into trust fund, any money appropriated purposes.5 208, 250, 49 1742; see H.R.Rep.No.91-601, Page 41 (1969) (hereinafter H.R.Rep.); U.S.Code Cong. & Admin.News 3047; S.Rep.No.91-706, Pages 23-25 (1970) S.Rep.). 4 financing promote purposes. First, serve congressional policy having especially activity help bear cost. See H.R.Rep. 38; S.Rep. 5. Second, provisions again found meet demands use. believed inadequacy past levels investment due competition nonaviation budgetary requests. 3. fund were, established provide funding "generally match grow demand" Id., at 8, 3055. 5 challenged one tax. 206, 4491. aircraft—including National Governments6—that States.7 charge depends upon type aircraft: piston-driven engines $25 plus cents per pound maximum certificated takeoff excess 2,500 pounds turbine-powered plus31/2 weight. n. 1,supra. 6 apparent rate 4491 legislative history contemplate generate revenue, bulk come other taxes,8 related more airspace. Thus, commercial aviation's activities raised primarily 8% price domestic passenger tickets, 203, 4261; $3 "head tax" international flights originating States,ibid.; 5% transporting property air, 204, 4271. Noncommercial aviation—the generic category includes aircraft—would most fuel. 202, 4041. 7 But expected modest understood indirectly regarded integral network charges.9 Moreover, Although generally view should required "there appear reason why [they] their facilities," 46, 3091; 17-18, fact subject charges, reta ned statutory exemption 68A 480, amended, 4041(g) (1976 ed.); 4221. 8 owns 4491, uses patrolling highways functions.10 1973 notified assessed $131.43 period June 30, 1971. refused thereafter levied Commonwealth's bank accounts interest penalties. 9 Pursuant 28 1346 (1970 ed. Supp. V), then action collected, unreported decision. indicated recent decisions limited taxation challenge could succeed unless discriminatory showed actually impaired function. Because alleged operations force, dismissal mandatory. alternative, held that, whatever scope principle taxes, doctrine. First Circuit affirmed, solely latter ground. 33 (1977). granted certiorari, 432 905, 97 2948, 53 1077 (1977), resolve conflict between decision Georgia Dept. Transp. versus 430 F.Supp. 823 (ND Ga.1976), appeal docketed, 77-16. City New York 394 641 (SDNY 1975), affirmance order, 538 308 (CA2 1976); Texas 72-2 Tax Cases (CCH) ¶ 16.048 (WD Tex.1972), aff'd, 73-1 16,085 (CA5 1973) (holding employees traveling official business). affirm. II 10 review doctrine necessary preface case. For concedes certain types activities,11 urges teach validity i post must judged "bright-line" test: If labeled and/or pursuant Internal Code, unconstitutional fee. Brief Petitioner 14-28. And maintains invalid additional values furthered necessarily require invalidation levy such 28-41. Neither contention merit. principles animated analogous contexts persuade us measure, like Government.12 Like Appeals, we occasion decide either vitality conditions might invoked. 11 That existence implies some restriction power decided Collector Day, Wall. 113, 20 L.Ed. 122 (1871). There instrumentalities enjoyed taxation, Dobbins Commissioners, 16 Pet. 435, 1022 (1842); McCulloch Maryland, Wheat. 316, 579 (1819), extent reciprocal salaries judges immune This Governments expanded last third 19th century century, see, e. g., Panhandle Oil company Mississippi ex rel. Knox, 277 218, 48 451, 72 857 (1928); Indian Motorcycle 283 570, 51 601, 75 1277 (1931) (sales person sovereign taxed other), confined 12 bottomed Supremacy Clause, States' judicially role scheme. supra, emphasized independent sovereigns when Constitution adopted, presupposes guarantees continued governmental bodies performing functions. Wall., 125-126. implement aspect plan, Day co cluded imperative absolutely prohibit affected function, quoting Chief Marshall's aphorisms " 'the . exercised destroy,' id., 123, 427, 'a right [to tax], nature, acknowledges limits.' Weston Charleston, 449, 466, 481 (1829). recently remarked maxims refer attributes power. support provides public large, legislature need consider value particular taxpayer, assess taxpayers' pay. Second (of perhaps greater concern context), powerful regulatory device; discourage eliminate within jurisdiction simply heavy exercise. Cable Television Association 415 336, 340-341, 94 1146, 1148-1149, 39 370 (1974). earlier reflected awesomeness absolute prohibition implicating because courts determine doubted. 13 contours evolved later decisions, "cogent reasons" recognized narrowly limiting imposts. Helvering Gerhardt, 304 405, 416, 58 969, 973, 82 1427 (1938). protection sovereignty expense Therefore, enlarged beyond protect deliver services, burden thrown without corresponding promotion protected values. See, 416-417, S.Ct., 973-974; Mountain Producers Corp., 303 376, 384-385, 623, 626-627, 907 (1938); Willcuts Bunn, 282 216, 225, 125, 126, (1931). second, Marshall Wheat., 435-436, political process uniquely adapted accommodating competing "for hand, independence other," U.S., 973: Congress, composed members chosen constituencies, constitutes inherent check possibility abusive Government.13 14 tacit, times explicit, recognition considerations, he declined enlarge restricted reach. Typical trend holding revenue-generating same nature traditionally engaged persons. 326 572, 66 310, 90 (1946) (tax water bottled sold upheld); Allen Regents, 439, 980, 1448 (1938) admissions athletic events approved notwithstanding proceeds functions); Powers, 293 214, 171, 79 291 (1934) railroad State); Ohio Helvering, 292 360, 54 725, 78 1307 liquor operation); South Carolina 199 437, 110, 50 261 (1905) state-run true opinions speak "proprietary" thus activity, Members decision, rejected governmental-proprietary distinction untenable.14 Rather majority15 reasoned business where, there, "accomplish withdrawal nation beginning. Its exercise curtail citizen." 588-589, 317 (Stone, C. J., concurring). 15 Illustrative restricting line cases culminated overruling Graves O'Keefe, 306 59 595, 83 927 (1939). g. supra; Metcalf Eddy Mitchell, 269 514, 46 172, 70 384 (1926). course, involved salary earned judicial officer. itself nor progeny precursors clear how employed preclude case, demonstrated key officials justifiable. agents State, citizens income natural 420 422, 975 976. significantly, applicable earne persons employment, risk virtually nonexistent significantly impede hire able 484-485, 600-601; 420-421, 975-976. advantage conceivably lost denying functions obtained lesser willing work smaller salaries. inadequate ground sustaining preventing requiring activities. 483 cited 3, 600. purpose enabling them engage lower entities, 421-422, 975-976, undue interference While officers increase government, prevent entities missions. 17 These lines illustrate "practical construction" now gives limitation power; "that cannot varied seriously impair it." 589-590, 318 concurring) 523-524, 174-175. Where source where inconceivable ever operate activities, valid. means abandoned doubts concerning particularized assessments impact operations, compare 581, 313 (opinion Frankfurter, J.)16 590, concurring),17 never threaten functioning hence outside immunity. B 18 recovering beneficiary's surely offensive scheme ax sale water.18 Government's compensated too apparent. perhaps, very possess led proclaim destroy. danger conferred devices burdening provision forces own way activity. precursors, 483, 600 economic Indeed, explicitly requires similar burdens U.S.Const., Amdts. 5, 14; Pennsylvania Coal Mahon, 260 393, 43 158, 67 322 (1922) (State just "takes" purpose); Article I, 10, cl. 1; Jersey, 431 1505, 52 92 (1977) (even burdensome, often comply obligations contracts), contended exactions specific offend Our conclusion. repeatedly privileges reasonably projects programs. Ivanhoe Irrigation Dist. McCracken, 357 275, 294-296, 1174, 1185-1186, 1313 (1958); Oklahoma Civil Service Comm'n, 330 127, 142-144, 544, 552-554, 91 794 (1947); San Francisco, 310 16, 60 749, 1050 (1940); cf. League Cities Usery, 426 833, 853, 96 2465, 2474, 245 (1976); Fry 421 542, 95 1792, 363 (1975). requirement users, portion enjoy permissible closely effects restrictions approved. clearly interpreting place limitations government. g.., (restricting interstate commerce); (prohibiting "to privilege entering, trading in, lying port." Clyde Mallory Lines Alabama Docks 296 261, 265-266, 56 194, 196, 80 215 (1935)). restrictions, immunity, exist valued destructive result measures. implicit Clause free flow commerce, Complete Auto Transit, Incorporated Brady, 274, 1076, duties entering ports specifically guard hindrances trade commerce vessels. Packet Keokuk, 80, 85, 24 377 (1877). 21 implementing consistently interests Clauses offended compensate supplied. Alabama, supra (flat charged vessel port upheld harbor policing); Evansville-Vanderburgh Authority Delta Airlines, Inc., 405 707, 1349, 31 620 (1972) ($1 head enplaning passengers facilities). body obvious making and, conferred, kind prohibit. Contract 22 Having turn argument treated degree airways.19 confronted contexts. Capital Greyhound Brice, 339 806, 1053 (1950), illustrative. attack Maryland highway "2% market motor vehicles commerce." carrier argued correlation sufficiently precise sustain valid charge. Noting "should result, formula, stand proven unreasonable granted," 545, 808, carrier's argument: 23 "Complete fairness formula vary road factors, relevant considering constitutionality countless content 'rough precision.' Each adds administrative enforcement, fall alike taxpayers justify states ignoring mileage, although face appears unequal different carriers. Upon reasoning rests our rule here shown roa s." 546-547, 809. (Citations footnotes omitted.) Aero Mayflower Transit Board Railroad Comm'rs, 332 495, 68 167, 99 (1947) (taxes $10 $15 vehicle sustained challenges); policing prohibited harbor). relied uphold claims travel $1 airline passengers. conferred. 716-720, 1355-1357. 25 Commonwealth, recognizes fees, urges, however, "rough approximations cost," compensatory settings, here. calibrated taxpayer's actual suggests we—for purposes only—define facilities. note doubtful direct least fees. arguing related, places extensive reliance DOT Study, prepared direction Congress,20 best beneficiaries. report possible, albeit costly tie received, Study 61, recovered 61 2. 27 fail appreciably advance policies embodied legitimate fear collection "fair share." observe apply large numbers parties well likely exacting perfect system. fundamentally, annu l results overcharges, solution precisely calibrate needed resulting increment overcharge complete answer somewhat still slight structure deal jury award eminent domain claimant what "just compensation" ideal justice. Whatever objection satisfies three-prong test —substituting "state function" "interstate commerce" test. So ceiling precludes adoption activities.21 III 29 Applying demonstrates particularly insubstantial. nondiscriminatory. States—facts minimize, entirely, conclusion discriminates favor retains aviation—a illustrates manner peculiarly interests. 30 indicated, background terms indicate four measures, taken together, fairly eflect redound States: tires, tubes, 4071, nn. supra. contained not, probable deficiency arises equal airports planned constructed assistance. nevertheless receives. Every flies available assistance supplied States.22 any, received sense makes safer users.23 three fourth, 9, formula—which include landing 62—would, administratively costly. follows complain application investment, alone. 32 Finally, When contemplated year, 4, experience operation fell short covering outlays.24 therefore produces costs25 incurred Government.26 Affirmed. 34 BLACKMUN took consideration 35 STEWART POWELL, concurring judgment. 36 petitioner conceded reasons stated Part II-B plurality opinion, agree. agree discuss II-A opinion. 37 On join Parts II-C, Court's concur 38 REHNQUIST, whom THE CHIEF JUSTICE joins, dissenting. Petitioner, Massachusetts, brought suit penalties connection moved dismiss petitioner's complaint, motion Massachusetts. affirmed judgment, expressly chose narrower Court. unnecessary examine law intergovernmental posed "is, reality, charge." 35. labeling assessment conclusive, 86, (1877), quoted following language explaining understanding charge: 40 'It duty prohibited: something virtue sovereignty, claimed proprietorship. Wharfage character. Providing wharf vessels fast, conveniently load unload, rendering service [A]nd, demanded wharf, demand assertion, property.' F.2d, 36, 85. defended judgment correct concluding exaction brief states: 42 "[T]his presents status excise payment funded could, example, postal purchasing stamps." 6-7. surprising find today's (which reflects views Justices) discussing length insists prove trial fee; apparently matter law. issue before Court, it. N Immigration Nationality Decisions defense establish, rendered agencies conclude establish proprietary interest. Cf. 84-85. am loss know feels obligated draw vague convoluted three-part valid, regarding relations raise considerations. cases, doubt useful analogies, payer structure, entitled deference ordinary enterprises regulated Governments. absence one, Tr. Oral Arg. 26-28, stands lose much vagueness sister 45 Regardless phrasing test, accept given opportunity satisfied. relying heavily (1972), holds alue furnished Ante, 466-467. considered noted challengers chance failed so. 720, 1357. addition, municipal corporations sought paying taking conclusions reached record us. "own" above territorial boundaries, undoubtedly considerable authority regulate Nor shows, question. traffic controllers, Were facts finder fact, cannot, my law, substitute factual findings House Senate merely 'generally viewed charge.' 449 (1969), 3091. 47 (1935), arose Duty Tonnage Constitution, misplaced regard. neither violated "policing aid efficient 264, 195. properly liable despite assistance, evidentiary affirmatively "[t]he enforcement [the] regulations inure enter [the harbor]." 266, 196. procedures leading summary situation Lines, exist. order dismissing development. reverse remand proceedings. POWELL WHITE, MARSHALL, STEVENS entire pertinent part, provides: "(a) Imposition Tax. "A hereby taxable year of— "(1) $25, "(2)(A) (other turbine-engine-powered aircraft) pounds, (B) 31/2 weight." Title 4492(c)(2) defines "use" "in States." "[T]axable aircraft" State. 4492(a); infra. include: assisting controlling takeoffs landings larger airports; control Instrument Flight Rule (IFR) navigation categories prior landing; miscellaneous Visual (VFR) IFR filing flight plans, weather information, rescue operations. Department Transportation, Cost Allocation Report: Determination, Allocation, Recovery System Costs (1973) Study). provided, principally Aviation Administration, 1348. Believing military, military revenues. 3-4, (1969); S.Rep.No.91-699, 4-5, (1970). $1,029 million $1,727 1979 $446.5 $1,399.9 1979. appr priations deficit decrease $582.5 $327.1 expenditures—which revenues, —will $178 $291 1979, allocable "civil deficit" $404.5 $36.1 monies expenses temporarily suspended 1971, Public Law 92-172, 85 491, restored. 873-874. state-owned aircraft. By terms, "taxable aircraft," defined 4492(a)(1) engine-driven "registered, registered section 501(a) 1958 [72 771] (49 1401(a))." lawfully statute supports view. discussion Committee explained terminating previously "since charge[, so] [bodies] facilities." 17-18. Obviously, equally Reports' "based premise basic entry system," (emphasis supplied), 3085; 20-21, 49; 20. broadly indicates government-owned covered, applies. 8-9, delineated 1301(24). table small aviation: "TABLE 3.-REVENUES FROM AVIATION USER TAXES, SELECTED FISCAL YEARS, 1965 (In millions dollars) Actual User 1967 1969 Passenger ticket $147.5 $194.5 $259.5 Cargo percent Fuel 16.7 14.4 11.0 International departure Taxes tires tubes 2.0 2.4 2.6 Aircraft -- Total 166.2 211.3 273.1 TABLE CONTINUED Estimated 1971 1974 $373.7 $507.2 $679.2 $1,083.2 18.7 42.7 63.1 134.2 26.5 45.8 54.3 76.7 12.4 27.1 36.5 58.7 2.8 3.0 3.5 5.0 26.6 32.3 42.1 446.5 652.4 868.9 1,399.9 "Source: U. S. Treasury Administra- tion, Office Economics." (footnotes omitted); 10. overstates estimated assumes piston pound, Ibid. indicates, highly insignificant measure. added Reports: "The [Committee] determine[s] many time craft air. heavier faster responsible sophisticated approach 48, 3093; 8-9. included bill attempt marginal addition possible (i. e., turbine-powered) At oral argument, informed 4. insist Postal carry unstamped letters roads—to federally toll roads toll. 8. difference magnitude arguments questions Brother REHNQUIST's dissent errs suggesting establishing proposition superfluous. post, 472. dissent's assertion contrary notwithstanding, validating rejection submission 22-23, 19. (1976), rejects eliminates reviewing federalism-based challenges regulation qua believe "political checks" relevance determination proper regularly checks County Fresno, 429 452, 699, 683 All eight Justices participated untenable one. 579-581, 313-314 joined Rutledge, J.); 586, 316 concurring, Reed, Murphy, Burton, JJ.); 591, (Douglas, dissenting, Black, J.). Frankfurter announced participating broader Stone, Justices. majority supported Justice's rationale. "Any supremacy us, discrimination brings play. problem escape issues lend themselves criteria methods professional training competence judges." "Since laid general, workable, rules, effect [state] determined quantitatively tendency withdrawing reach taxation." inflexibly called characterized "tax" possesses talismanic significance. observe, moreover, regard Only few words reject suggestion user-fee rationale Quite simply, think position sort property. invoked whenever Provisions directed Transportation conduct users. 220, 1703; 209 252. underscores illustrated expire 1980, 4491(e), interim recovery characterization urged adopt, 19-20) "vague convoluted" 472, overlooks consistent applications difficulty, involving negative implications Clause. today III, infra, suppose applying intensive airplane, denied argument. bar depend involved, invariably fly, Cannon Orleans, 577, 417 (1874). There, ordinance wharves riverbanks indiscriminately, built city, justified What distinguishes Comm'n,, recipient redounded port. asks notice, concludes close program. 43. finds greatest shortfall produced 43-50. exceeded outlays, follow applied. 719-720, 1356-1357, comparing outlays: i. surplus offset deficits future years. another stating disagreement governing legal principles. Compare 463 19, 467-469, 473-474. principles, plainly hearing. light undisputed dispute among supplies relationship various airsystem. circumstance amply justifies prong

Classification Label: 9