Legal Document

409 U.S. 91 93 Supreme Court Reporter 349 34 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 325 EVCO, dba Evco Instructional Designs, Petitioner,v.Franklin JONES, Commissioner of Bureau Revenue the State New Mexico, et al. Number 71 - 857. Argued Nov. 8, 1972. Decided Dec. 4, Kendall O. Schlenker, Albuquerque, N.M., for petitioner. John C. Cook, Santa Fe, respondents. PER CURIAM. 1 The petitioner, Evco, is a Mexico corporation that employs writers, artists, and draftsmen to create design instructional programs. It develops an educational idea into finished product generally consists reproducible originals books, films, magnetic audio tapes. Typical its contracts Evco's agreement with Department Agriculture develop camera-ready copies programmed textbooks, notebooks, manuals be used in orientation course forest engineers. are negotiated entered outside Mexico; it creates then delivers them out-of-state clients. customers turn use publish however many books needed implement program. 2 levied State's Emergency School Tax Gross Receipts on total proceeds received from these contracts.1 company appealed this assessment Appeals arguing taxes sales imposed unconstitutional burden interstate commerce violation Article I, § Constitution. That court found though were tangible personal property, rather than receipts services, such not commerce. 81 N.M. 724, 472 Pacific Reporter, 2nd 987.2 declined review judgment. 772, 473 911. 3 In his brief opposition petition certiorari, which sought our judgment, Attorney General conceded could tax property State. We granted vacated remanded case reconsideration light position taken by General. 402 969, 1655, 29 134. 4 On remand, adhered prior findings but concluded constitutionality should depend distinction. reinstated reaffirmed opinion finding constitutional. 83 110, 488 1214. again case, 1209, we certiorari. 405 953, 92 1174, 31 229. 5 Our cases indicate may services performed taxing State, even they sold purchasers another Hence, Treasury versus Ingram-Richardson Mfg. Co., 313 252, 61 866, 85 L.Ed. 1313, upheld state gross income taxpayer engaged process enameling metal parts customers. accepted below was derived products, irrelevant fact made validly service See also Western Live Stock Revenue, 303 250, 58 546, 82 823. 6 But impermissible Judge D. Adams Storen, 304 307, 913, 1365, rejected as attempt impose taxpayer's road machinery 7 'The vice statute applied includes measure, without apportionment, activities commerce; exaction character if lawful substance laid fullest extent states goods well those manufactured. Interstate would thus subjected risk double intrastate exposed, clause forbids.' Id., at 311, S.Ct., 916. 8 Gwin, White & Prince, Incorporated Henneford, 305 434, 59 325, 272. 9 As previous both parties accept propositions, agree accepted, judgment must reversed. 10 only real dispute between centers factual question nature effect taxes. contends actually sale argues paid programs developed incidental purchased. interpretation facts. sine qua non contract had taxed. 'There no exceptional circumstances any kind justify us rejecting . Court's findings; foundation, them.' Lloyd Atlantic Fry Roofing Wood, 344 157, 160, 73 204, 206, 97 168. Grayson Harris, 267 352, 357—358, 45 317, 319, 69 652; Portland Railway, Light Power Railroad Comm'n, 229 397, 411—412, 33 820, 826—827, 57 1248. 11 Accordingly, since approved imposition 12 Reversed. Taxes assessed period January 1, 1966, through December 31, 1968. From June 30, 1967, petitioner's subject Act. N.M.Stat.Ann. §§ 72—16—2 72—16—19, 1953 Compilation, repealed N.M.Laws chapter 47, 22. July 1968, remainder taxable period, taxed under Compensating 72—16A—1 72—16A—19, Compilation (Supp.1971). did find, however, government agencies certain specified organizations statutorily exempted taxation. Those specific exemptions issue here.

Classification Label: 7