Hugo Black

“ No doubt difficulties are encountered by the States in formulating classifications for tax purposes which express the needed accommodation in our federalism between due regard for the special facilities afforded by States to interstate commerce for which they require compensation, and that freedom of commerce across State lines the desire for which was one of the propelling forces for the establishment of this nation and the benefits of which are one of its greatest sources of strength. ”

“ Yet clearly a flat fee is not geared to mileage, weight or any other factor relevant in considering the fairness of compensation for road use. Thus, unless we are to depart from prior decisions, the Maryland tax based on the cost of the vehicles should be judged by its result, not its formula, and must stand unless proven to be unreasonable in amount for the privilege granted. ”

“ Once more we are called upon to subject a State tax on interstate motor traffic to the scrutiny which the Commerce Clause requires so that interstate commerce may enjoy freedom from State taxation outside of those narrow limits within which States are free to burden such commerce.
The essential facts are easily stated. By various provisions of Maryland law, an interstate motor carrier may not operate its vehicles within the State until it has registered them. As a prerequisite to registration the carrier must obtain a certificate of title for each vehicle. ”

“ Since the levy is upon commerce exclusively interstate, and therefore inevitably an inroad upon its normal freedom from State burdens, Maryland must justify it as a means of securing compensation for the road use which the State affords and for which it may exact a return. ”

“ While the privilege extended by a State is unlimited in form, and thus theoretically the same for all vehicles, whether interstate or intrastate, the intrastate vehicle can and will exercise the privilege whenever it is in operation, while the interstate vehicle must necessarily forego the privilege some of the time simply because of its interstate character, i.e., because it operates in other States as well. In the general average of instances, the privilege is not as valuable to the interstate as to the intrastate carrier. ”

“ Difficulties in applying the test of reason do not justify abandonment of reason for the impossible task of deciding fiscal fairness to each individual carrier.
II. Since the basis of its imposition is fatally defective, the Maryland tax cannot be saved by its amount. But quite apart from its formula, there are serious questions relating to the amount of this tax which the Court disregards. There is a show of fairness in the Court's suggestion that the tax will be declared bad if the amount exacted exceeds 'fair compensation' to the States. ”

“ The right of a State to levy such a compensatory tax also as to interstate commerce for special benefits is well settled. The subjection of interstate motor traffic to such State power is only a particular application of a general principle. ”

“ But with full appreciation of congenital infirmities of the Maryland formula-and indeed of any formula in this field-as well as of our present rules to test its validity, we are by no means sure that the remedy suggested by appellants would not bring about greater ills. Complete fairness would require that a state tax formula vary with every factor affecting appropriate compensation for road use. ”

“ The fee is for the privilege for a use as extensive as the carrier wills that it shall be. There is nothing unreasonable or oppressive in a burden so imposed. * * * One who receives a privilege without limit is not wronged by his own refusal to enjoy it as freely as he may.' Aero Mayflower Transit Co. ”

“ Section 25A of Article 66 1/2 of the Annotated Code of Maryland, 1947 Cum.Supp., imposes a so-called titling tax of 2% of the 'fair market value' of each motor vehicle 'for the issuance of every original certificate of title * * * and * * * every subsequent certificate of title * * * in the case of sales or resales * * *.' [9] Thus, the tax does not strike at periodic intervals but only when a purchase has been made of a motor vehicle which is to be operated in whole or part on Maryland highways, whether the vehicle be new or old. The entire proceeds of the tax are devoted to road purposes. ”

“ Examples are taxes based on mileage, chassis weight, tonnage-capacity, or horsepower, singly or in combination-a list which does not begin to exhaust the innumerable factors bearing on the fairness of compensation by each carrier to a state. ”

“ Since the relationship of these factors to highway construction and maintenance costs cannot be measured with even proximate accuracy, the States are not hobbled in exercising rough judgment in devising tax formulas, giving to size, weight and other relevant factors such respect as is fairly within the restraints of decency. ”

“ Contrariwise, it is within the competence of judges to determine the fair relevance of criteria in achieving allowable ends. How criteria work in specific cases involves familiar practicalities in the administration of law. ”

“ And see case collections cited in note 2, supra.↑ These dangers are heightened when the tax falls upon an interstate motor carrier authorized to operate only on a fixed route. Quite illustrative of the seriousness of the general problem are the facts concerning one of appellants here, Capitol Greyhound Lines, which is authorized by the I.C.C. to operate a bus line over a fixed route between Cincinnati, Ohio and Washington, D.C., a distance of about 496 miles, only nine of which are over Maryland's State roads. ”

“ The term is not selfdefining and no intimation is afforded regarding the standards by which excessiveness is to be determined. Reference is made to Ingels v. Morf, 300 U.S. 290, 57 S.Ct. 439, 81 L.Ed. ”

“ Department of Treasury of Indiana, 216 Ind. 255, 264, 24 N.E.2d 268, 272, which was '* * * based upon the carrying capacity, number of wheels per axle, load per axle, size of tires used, weight, and other elements described in the act, all of which bear a direct relation to the hazards of the highways.'↑ Congress has passed comprehensive legislation regulating interstate carriers in which it is declared that 'nothing in this chapter shall be construed to affect the powers of taxation of the several States * * *.' 49 U.S.C. § 302 (b) , 49 U.S.C.A. § 302 (b) . ”