Legal Document

493 U.S. 378 110 S.Ct. 688 107 L.Ed.2d 796 JIMMY SWAGGART MINISTRIES, Appellantv.BOARD OF EQUALIZATION CALIFORNIA. No. 88-1374. Argued Oct. 31, 1989. Decided Jan. 17, 1990. Syllabus California law requires retailers to pay a 6% sales tax on in-state of tangible personal property and collect from state residents use such purchased outside the State. During period in question, appellant religious organization, which is incorporated Louisiana, sold variety materials at "evangelistic crusades" within made mail-order other residents. Appellee State Board Equalization (Board) audited advised it that should register as seller required by report taxes aforementioned sales. Appellant paid ruled against its petitions for redetermination refund, rejecting contention violated First Amendment. The trial court entered judgment appellant's refund suit, Court Appeal affirmed, Supreme denied discretionary review. Held: 1. California's imposition liability does not contravene Religion Clauses Pp. 384-397. (a) collection payment imposes no constitutionally significant burden practices or beliefs under Free Exercise Clause, accordingly require grant exemption. misreads Murdock v. Pennsylvania, 319 105, 63 870, 87 L.Ed. 1292, Follett McCormick, 321 573, 64 717, 88 938, which, although holding flat license commercial unconstitutional with regard evangelical distribution materials, nevertheless specifically stated activity may be subjected generally applicable income akin issue. Those cases apply only where operates prior restraint free exercise belief. As such, they do invalidate tax, represents small fraction any sale, applies neutrally all relevant regardless nature purchaser, so there danger being singled out special burdensome treatment. Moreover, concern operate precondition evangelistic present here, because statutory registration requirement itself act restraints—no fee charged registering, due preregistration, imposed disseminating message. Furthermore, since argues unconstitutionally burdened reduction resulting presumably lower demand wares (caused marginally higher price generated tax) costs associated administering claim tension Hernandez Commissioner, 490 680, 699, 109 2136, 2148-2149, 104 766, clear that, extent merely decreases amount money has spend activities, different laws regulations organizations must adhere. While more onerous rate than California's, even if applicable, might effectively choke off an adherent's practices, situation before, considered by, this Court. 384-392. (b) Application sale violate Establishment Clause fostering excessive governmental entanglement religion. evidence administrative thin, expressly found light sophisticated accounting staff computerized methods, record did support assertion impose severe burdens it. will some contact between State, recordkeeping without running afoul Clause. See, e.g., Hernandez, supra, 696-697, S.Ct., 2147. fact bear cost collecting remitting tax—even financial vary religion religion—does enmesh government affairs, scheme neither involvement employees in, nor on-site continuing inspection of, day-to-day operations. Most significantly, exemption inquire into content items motivation selling purchasing them, are subject motive. 392-397. -2. merits Commerce Due Process properly reached Court, both was procedurally barred presented law. Michigan Long, 463 1032, 1041-1042, 103 3469, 3476-3477, 77 1201. failed substantiate courts general procedural bar rule pertinent exception irregular, arbitrary, inconsistent manner. 397-399. 204 Cal.App.3d 1269, 250 Cal.Rptr. 891, affirmed. O'CONNOR, J., delivered opinion unanimous Michael W. McConnell, appellant. Richard E. Nielsen, appellee. Justice O'CONNOR 1 This case presents question whether Amendment prohibit imposing organization. 2 * Sales Use Tax Law "[f]or privilege retail." Cal.Rev. & Tax.Code Ann. § 6051 (West 1987). A "sale" includes transfer title possession consideration. 6006(a) Supp.1989). 3 complement reaches out-of-state purchases It "imposed storage, use, consumption retailer," 6201, same (6 percent). Although 6202, collected retailer time made. §§ 6202-6206. Neither Constitution exempts apart limited serving meals organizations, 6363.5. 4 (1974 1981), Jimmy Swaggart Ministries organization Louisiana nonprofit corporation recognized Internal Revenue Service pursuant 501(c)(3) Code 1954, amended, 26 U.S.C. (1982 ed.), Controller Inheritance Gift Laws California. Appellant's constitution bylaws provide "is called purpose establishing maintaining outreach worship Almighty God." App. 107. performed "by available means, home foreign lands," 5 "shall include crusades; missionary endeavors; radio broadcasting (as owner, broadcaster, placement agency); television (both owner broadcaster); audio production reproduction music; preaching; teaching; writing, printing publishing; and, individual mass media methods presently exist devised future proclaim good news Jesus Christ." Id., 107-108. 6 From 1974 1981, conducted numerous auditoriums arenas across country cooperation local churches. 61. period, held 23 crusades California—each lasting days, one crusade days—for total 52 days. 19-20. At crusades, services included preaching singing. Some these were recorded later broadcast. also books, tapes, records, nonreligious merchandise crusades. 7 published monthly magazine, "The Evangelist," nationwide subscription. magazine contained articles well advertisements records. order form listing various particular issue their unit price, spaces purchasers fill quantity desired price. offered through radio, television, cable broadcasts, including broadcasts stations. 8 In 1980, appellee informed exempt requested facilitate reporting tax. See 6066-6074 1987 Supp.1989) (tax requirements). responded opined had sufficient nexus purchasers. 9 Based Board's review parties stipulated "that [appellant] April 1, 1974, December measured $1,702,942.00 mail Baton Rouge, $240,560.00 California." 58. These figures represented specific content—Bibles, Bible study manuals, printed sermons collections sermons, audiocassette tapes books pamphlets, music songbooks, Juris. Statement B-1 B-3. notified owed $118,294.54, plus interest $36,021.11, penalty $11,829.45, $166,145.10. 8. contest assessment certain merchandise, "T-shirts JSM logo, mugs, bowls, plates, replicas crown thorns, ark covenant, Roman coin, candlesticks, stand, pen pencil sets, prints scenes, bud vase, communion cups." 59-60. 10 filed petition Board, reiterating view Following hearing appeal deleted but otherwise redetermined matter adjustment $118,294.54 owing, $65,043.55 interest. Pursuant law, Board. 6902 petition, brought suit court, seeking paid. 11 ruling entitled 891 (1988), We noted probable jurisdiction 28 1257(2) ed.) (amended 1988), 1018, 1741, 178 (1989), now affirm. II 12 central State's contravenes Amendment's command, States Fourteenth Amendment, "make respecting establishment religion, prohibiting thereof." challenges Clauses. A. 13 we have noted, "withdraws legislative power, federal, exertion Its secure liberty invasions thereof civil authority." Abington School Dist. Schempp, 374 203, 222-223, 83 1560, 1571-1572, 844 (1963). Indeed, "[a] regulation neutral face may, application, nonetheless offend constitutional neutrality unduly religion." Wisconsin Yoder, 406 205, 220, 92 1526, 1535, 32 15 (1972). Our established "[t]he inquiry asks placed substantial observation belief practice so, compelling justifies burden." 2148, 766 (1989) (citations omitted). 14 relies almost exclusively our decisions 1292 (1943), 576, 719, 938 (1944), proposition material contends manner identical evangelists burdened. reject expansive reading contrary themselves. Murdock, constitutionality city ordinance requiring persons canvassing soliciting procure paying fee. Reversing convictions Jehovah's Witnesses convicted distributing literature license, explained: 16 hand tracts age-old evangelism . [and] been potent force movements down years. utilized today large scale sects whose colporteurs carry Gospel thousands upon homes seek visitations win adherents faith. literature. combination both. revival meeting. occupies high estate churches pulpits." U.S., 108-109, 872-873 (footnotes 17 Accordingly, "spreading one's type protection orthodox types." 110, 873; see Jones Opelika, 103, 890, 1290 (1943); Martin Struthers, 141, 862, 1313 (1943). 18 extended following Term invalidating, applied "one who earns his livelihood evangelist preacher town," (similar involved ) booksellers sell books. 719. Reaffirming " 'the power control suppress enjoyment,' 577, 719 (quoting 112, 874), reasoned restricted expression economic views. He makes profession less preferred position casual worker." 19 cases, however, resulted challenged taxes—flat operated liberty. instance, emphasized "a tax—a granted Bill Rights," 113, 875, cautioned "[w]e mean say groups press government. here something quite different, example, engages activities used employed connection those activities." 874 (citing Grosjean American Press Co., 297 233, 250, 56 444, 449, 80 660 (1936)); 115, 876 ("This charge enjoyment benefit bestowed state"). Follett, reiterated "free government, property" "like citizens, taxation." 578, (emphasis added). 20 Significantly, primary vice ordinances restraints protected conduct: 21 "In [in invalidated] issuance permit dependent And fixed unrelated scope petitioners realized revenues. nominal regulatory measure defray expenses policing question. way apportioned. levied condition pursuit guaranteed restrains advance liberties inevitably tends exercise. That uniformly inherent evil tax." 113-114, 875-876 22 ("The exaction great obnoxious censorship previous restraint") Thus, establish "as types," 873, further help would beliefs—is simply uses confirmed decision Minneapolis Star Tribune Co. Minnesota Commissioner Revenue, 460 575, 1365, 75 295 (1983), newspaper's challenge ink paper products periodic publications. course striking rejected suggestion, premised could Construing involving receipts speaker valid scheme, right speak," 587, n. 9, 137, original), noted: 24 "By engaging activity, defendants speech, rendering highly susceptible challenge. regard, cited resemble consistently nondiscriminatory newspapers permissible." Ibid. 25 Accord, Arkansas Writers' Project, Inc. Ragland, 481 221, 229, 1722, 1727, 95 209 (1987) ("[A] genuinely permissible"). note just last plurality precise argument makes. Texas Monthly, Bullock, 489 BRENNAN, writing three Justices, publications 14-21, 899-903 (plurality opinion). concluding, prevent withdrawing exemption, noting "[t]o opinions read suggest Federal Government never publications, dicta." 24, 904. WHITE, concurring judgment, concluded publication determined tax-exempt status. 24-25, 905. BLACKMUN, joined concurred plurality's contravened reserved "the organization; words, defining ultimate left another day." 28, 907. case, course, chosen create therefore need revisit Monthly. 27 do, decide open BLACKMUN's concurrence Monthly limiting beliefs. plainly claim. retail purchaser charitable, religious, nonprofit, nature. Union League Club Johnson, Cal.2d 275, 278, 115 P.2d 425, 426 (1941); People Imperial County, 76 Cal.App.2d 572, 576-577, 173 352, 354 (1946); Bank America National Trust Savings Assn. Equalization, 780, 796-797, 348, 357-358 (1962). disseminate information, ideas, per se; rather, making For treats treat bookstore; long property, purchase. There requirement, Supp.1989), unlike "in apportioned" "realized revenues" itinerant preachers forced 875-876; 22, 903, activity. 29 addition misplaced reliance Court's Government's disallowance deduction "auditing" "training" 694-700, 2146-2149. 30 "[a]ny auditing training derives solely result denial, gain access sessions. public fee; indeed, denial 'contribution gift' seem pale comparison overall federal adherent." 2149. 31 violates sincere remit claimed price) significant. ibid.; 19-20, 902 opinion); Bob University United States, 461 574, 603-604, 2017, 1381-1382, 157 (1983). availability (at here) distinguishable, base "incrementally larger interferes 700, precisely argument—rather deductions—that Hernandez. bottom, though doubt complying regulations—such health safety regulations—to 33 Finally, forbid Sherbert Verner, 398, 1790, 965 (1963), progeny misplaced, sense 'condition[ed] receipt important conduct proscribed faith, denie[d] mandated belief, thereby putting pressure adherent modify behavior beliefs.' Hobbie Unemployment Appeals Comm'n Florida, 480 136, 1046, 1049, 94 190 Thomas Review Bd. Indiana Employment Security Div., 450 707, 717-718, 101 1425, 1431-1432, 67 624 (1981)). alleged mere itself, 34 conclude possible imagine rate, cf. (the render "crushed closed sheer weight toll tribute exacted town town"), case. intimate views B 35 application fosters 'an religion,' Lemon Kurtzman, 403 602, 613, 91 2105, 2111, 745 (1971) Walz New York City, 397 664, 674, 90 1409, 1414, 697 (1970)). alleges, controversy featured inspections lengthy audits, examinations threats criminal prosecution, layers judicial proceedings. 36 prohibits "sponsorship, support, active sovereign activity." Walz, 668, 1411. "excessive entanglement" prong tripartite purpose-effect-entanglement test, Lemon, 612-613, 2111-2112, examination character purposes institutions benefited, aid provides, relationship authority" id., 615, 2112; 695, 1425 (separate Harlan, J.) (warning "programs, very apt entangle details administration"). "religious properties worship," part institutions, 666-667, 1410-1411, upholding taxation cause least much authorities exemption: 37 "Either occasions degree Elimination tend expand giving rise valuation church liens, foreclosures, direct confrontations conflicts follow train legal processes. 38 "Granting exemptions necessarily afford indirect gives some, yet lesser, taxing them. analyzing either alternative questions excessive, calling official surveillance leading impermissible entanglement." 674-675, 1414-1415. 39 presented, therefore, results "excessive" "continuing 40 outset, undeniable secular advances inhibits essence whatever contours County Allegheny Civil Liberties Pittsburgh, 492 589-594, 3086, 3099-3101, 106 472 (tracing evolution doctrine); Bowen Kendrick, 487 589, 615-618, 108 2562, ----, 520 (1988) (applying criticism test), undisputed core values remotely 41 Even applying hold threatens state. First, thin. alleges Appeal, factual assertions, "had recently own obtaining segregated 'retail sales' 'donations.' Cal.App.3d, 1289, Cal.Rptr., 42 Second, assuming appellant, level. Collection 2147-2148 ("[R]outine interaction [such laws] involves inquiries doctrine, delegation body, 'detailed monitoring close contact' bodies, nonentanglement command"); Tony Susan Alamo Foundation Secretary Labor, 471 290, 305-306, 105 S.Ct.1953, 1963-1964, 85 278 (1985) fire building zoning regulations, 614, 2112, requirements Fair Labor Standards Act, while perhaps terms paperwork, significantly intrusive affairs"). To sure, "appl[ied] undertaken 'business purpose,' impact petitioners' activities," 305, 1963, recognition kind previously pose intolerable risk religion," ibid. 43 affairs. Contrary contentions, "official surveillance," 675, auditors. sorts far invasive level created administration laws. Cf. Aguilar Felton, 473 402, 414, 3232, 3238, 290 (1985); Larkin Grendel's Den, Inc., 459 116, 126-127, 505, 511-512, 74 (1982). 44 items, point view, critical determination. stands firmer ground offers relieving place monetary value items. Compare 697-698, 2148 (where comparable service marketplace, looks providing service), 706, 2152 (O'CONNOR, dissenting) ("It becomes impossible compute 'contribution' portion charity what received return intangible, intangible (or, tangible) bought except donative contexts"). asserts donations often accompany payments sometimes given away (or payment), plain first "order forms" "price lists" renders illusory difficulty separating two portions second constitutes "sale." Ironically, theory, core" "nonreligious" prohibit: "determine expenditures secular." 621-622, 2115-2116. 45 find III 46 because, distributor, insufficient "nexus" Geographic Society 430 551, 554, 97 1386, 1389, 51 631 (1977); Bellas Hess, Department Ill., 386 753, 756-760, 1391-1393, 505 (1967). decline reach claim, below barred. 47 provides grounds founded," 6904(a) suits entertained credit duly filed" 6932. Suit thereafter "on set forth claim." 6933. delineates restricts issues taxpayer's action. [appellate] consider Atari, 170 665, 672, 216 267, 271 serves legitimate exhaust remedies before proceeding "[s]uch prevents having overworked channels." 673, 272. 48 cite articulate arguments contesting (incorporating redetermination, turn raised arguments, 11-16). officer forwarding "[c]ounsel argue nexus," indeed request based 59. declined raise 1290-1292, 905-906; 213. unambiguous unnecessary us asserted 1201 (1983); Tyler, 436 499, 512, 7, 98 1942, 1951, 486 (1978). 49 urges relied inadequate 'strictly regularly followed.' Hathorn Lovorn, 457 255, 263, 102 2421, 2426, 72 824 (1982) Barr City Columbia, 146, 149, 84 1734, 1736, (1964)). retain authority hear claims "involving policy" notwithstanding parties' failure agency. Lindeleaf Agricultural Relations Bd., Cal.3d 861, 870-871, 226 119, 124-125, 718 106, 112 (1986); Hale Morgan, 388, 394, 149 375, 379, 584 516 observes, barred, ignored Ninth Tenth 1292-1293, 907-908, likewise 19, 907, 19. 50 "important policy," instead "raise[d] questions, determination 'public policy' evidence." erred declining us. thus express ordered.

Classification Label: 2