46 Ga. App. 236 | Ga. Ct. App. | 1933
This case was transferred to this court by the Supreme Court. 174 Ga. 631 (163 S. E. 603). The American Mills Company, a Georgia corporation, engaged in business as wholesaler, jobber, and broker of certain articles of merchandise, brought suit against the State tax-commissioner for a refund of taxes collected from the company under the “sales-tax act” of August 29, 1929 (Ga. L. 1929, p. 103). The petition, as amended, alleges that petitioner transacts both intrastate and interstate business; that a tax was paid on the business transacted within the State, and no claim for refund with respect to this has been filed; that petitioner paid taxes on business transacted outside the State from October, 1929, to December, 1930; that business transacted outside the State constitutes business done in interstate commerce; that all taxes levied on gross receipts derived from business transacted outside the State are a burden on interstate commerce; that petitioner is
1. Where the contract is for the sale of an article and for its delivery to the buyer in another State, the transaction is one of interstate commerce. Addyston &c. Co. v. U. S., 175 U. S. 211, 246 (20 Sup. 96, 44 L. ed. 136); Shafer v. Farmers Grain Co., 268 U. S. 189 (45 Sup. Ct. 481, 69 L. ed. 909); Heyman v. Hays, 236 U. S. 178 (35 Sup. Ct. 403, 59 L. ed. 527); Crew Levick Co. v. Pennsylvania, 245 U. S. 292, 296 (38 Sup. Ct. 126, 62 L. ed. 295); American Express Co. v. Iowa, 196 U. S. 133 (25 Sup. Ct. 182, 49 L. ed. 417); Pennsylvania R. Co. v. Sonman &c. Co., 242 U. S. 120 (37 Sup. Ct. 46, 61 L. ed. 188); American Manufacturing Co. v. St. Louis, 296 Fed. 899, 900; Kehrer v. Stewart, 117 Ga. 969 (3) (44 S. E. 854). Interstate commerce consists of intercourse and traffic between the citizens or inhabitants of different States, and includes the purchase, sale, and exchange of commodities. Gloucester Ferry Co. v. Pennsylvania, 114 U. S. 196, 203 (5 Sup. Ct. 826, 29 L. ed. 158); Kidd v. Pearson, 128 U. S. 1, 20 (9 Sup. Ct. 6, 32 L. ed. 346).
2. It is a burden on interstate commerce for a State to lay a tax on the proceeds of interstate commerce, and a tax by a State upon the gross receipts of goods sold in interstate commerce is a tax on interstate commerce, and is contrary to the Federal constitution. Civil Code (1910), § 6644 (3); State Freight Tax Case, 15 Wall. 232, 276 (21 L. ed. 146); Fargo v. Michigan, 121 U. S. 230, 244 (7 Sup. Ct. 857, 30 L. ed. 888); McCall v. California, 136 U. S. 104, 109 (10 Sup. Ct. 881, 34 L. ed. 392); Crew Levick Co. v. Pennsylvania, supra; New Jersey Bell Telephone Co. v. State Board, 280 U. S. 338 (50 Sup. 111, 74 L. ed. 463); Hope Natural Gas Co. v. Hall, 274 U. S. 284 (47 Sup. Ct. 639, 71 L. ed. 1049); and see City of Atlanta v. York Manufacturing Co., 155 Ga. 33 (116 S. E. 195).
4. It follows that the court below erred in sustaining the demurrer to the plaintiff’s petition and dismissing the same.
Judgment reversed.