EVANSVILLE-VANDERBURGH AIRPORT AUTHORITY DISTRICT ET AL. v. DELTA AIRLINES, INC., ET AL.
No. 70-99
Supreme Court of the United States
Argued February 23-24, 1972-Decided April 19, 1972
405 U.S. 707
*Together with No. 70-212, Northeast Airlines, Inc., et al. v. New Hampshire Aeronautics Commission et al., on appeal from the Supreme Court of New Hampshire, argued February 24, 1972.
Howard P. Trockman argued the cause for petitioners in No. 70-99. With him on the briefs was James F. Flynn. John K. Mallory, Jr., argued the cause for respondents in No. 70-99 and for appellants in No. 70-212. With him on the brief in No. 70-99 were Fred P. Bamberger, J. Eugene Marans, and Jeffrey R. Kinney. With him on the brief in No. 70-212 were Joseph A. Millimet and Mr. Marans. W. Michael Dunn, Assistant Attorney General of New Hampshire, argued the cause for appellees in No. 70-212. With him on the brief was Warren B. Rudman, Attorney General.
Donald G. Alexander filed a brief for the National League of Cities as amicus curiae urging reversal in No. 70-99.
The question is whether a charge by a State or municipality of $1 per commercial airline passenger to help defray the costs of airport construction and maintenance violates the Federal Constitution. Our answer is that, as imposed in these two cases, the charge does not violate the Federal Constitution.
No. 70-99. Evansville-Vanderburgh Airport Authority District was created by the Indiana Legislature to operate Dress Memorial Airport in Evansville, Indiana. Under its authority to enact ordinances adopting rates and charges to be collected from users of the airport facilities and services, the Airport Authority enacted Ordinance No. 33 establishing “a use and service charge of One Dollar ($1.00) for each passenger enplaning any commercial aircraft operated from the Dress Memorial Airport.” The commercial airlines are required to collect and remit the charge, less 6% allowed to cover the airlines’ administrative costs in doing so. The moneys collected are held by the Airport Authority “in a separate fund for the purpose of defraying the present and future costs incurred by said Airport Authority in the construction, improvement, equipment, and maintenance of said Airport and its facilities for the continued use and future enjoyment by all users thereof.”
Respondents challenged the constitutionality of the charge in an action filed in the Superior Court of Vanderburgh County, Indiana. The court held that the charge constituted an unreasonable burden on interstate commerce in violation of
We begin our analysis with consideration of the contention of the commercial airlines in both cases that the charge is constitutionally invalid under the Court‘s decision in Crandall v. Nevada, 6 Wall. 35 (1868). There the Court invalidated a Nevada statute that levied a “tax of one dollar upon every person leaving the State by any railroad, stage coach, or other vehicle engaged or employed in the business of transporting passengers for hire.” The Court approached the problem as one of whether levy of “any tax of that character,” whatever its amount, impermissibly burdened the constitutionally protected right of citizens to travel. In holding that it did, the Court reasoned:
“[I]f the State can tax a railroad passenger one dollar, it can tax him one thousand dollars. If one State
can do this, so can every other State. And thus one or more States covering the only practicable routes of travel from the east to the west, or from the north to the south, may totally prevent or seriously burden all transportation of passengers from one part of the country to the other.” Id., at 46.4
The Nevada charge, however, was not limited, as are the Indiana and New Hampshire charges before us, to travelers asked to bear a fair share of the costs of providing public facilities that further travel. The Nevada tax applied to passengers traveling interstate by privately owned transportation, such as railroads. Thus the tax was charged without regard to whether Nevada provided any facilities for the passengers required to pay the tax. Cases decided since Crandall have distinguished it on that ground and have sustained taxes “designed to make [interstate] commerce bear a fair share of the cost of the local government whose protection it enjoys.” Freeman v. Hewit, 329 U. S. 249, 253 (1946).5 For example, in Hendrick v. Maryland, 235 U. S. 610 (1915), a District of Columbia resident was convicted of driving in Maryland without paying a fee charged to help defray the costs of road construction and repair. He challenged his conviction on the ground that the fee burdened interstate commerce in violation of the rights of citizens to travel into and through the State. The Court rejected that argument, holding that:
“[W]here a State at its own expense furnishes special facilities for the use of those engaged in com-
merce, interstate as well as domestic, it may exact compensation therefor. The amount of the charges and the method of collection are primarily for determination by the State itself; and so long as they are reasonable and are fixed according to some uniform, fair and practical standard they constitute no burden on interstate commerce. Transportation Co. v. Parkersburg, 107 U. S. 691, 699; Huse v. Glover, 119 U. S. 543, 548, 549; Monongahela Navigation Co. v. United States, 148 U. S. 312, 329, 330; Minnesota Rate Cases, 230 U. S. 352, 405; and authorities cited. The action of the State must be treated as correct unless the contrary is made to appear. In the instant case there is no evidence concerning the value of the facilities supplied by the State, the cost of maintaining them, or the fairness of the methods adopted for collecting the charges imposed; and we cannot say from a mere inspection of the statute that its provisions are arbitrary or unreasonable.” Id., at 624.
The Court expressly distinguished Crandall, saying:
“There is no solid foundation for the claim that the statute directly interferes with the rights of citizens of the United States to pass through the State, and is consequently bad according to the doctrine announced in Crandall v. Nevada, 6 Wall. 35. In that case a direct tax was laid upon the passenger for the privilege of leaving the State; while here the statute at most attempts to regulate the operation of dangerous machines on the highways and to charge for the use of valuable facilities.” Ibid.6
The Indiana and New Hampshire Supreme Courts differed in appraising their respective charges in terms of whether the charge was for the use of facilities in aid of travel provided by the public. The Indiana Supreme Court held that the Evansville charge “is not reasonably related to the use of the facilities which benefit from the tax . . . .” Ind., at --, 265 N. E. 2d, at 31. The New Hampshire Supreme Court, on the other hand, held that the New Hampshire charge was a “fee for the use of facilities furnished by the public” that did not “exceed reasonable compensation for the use provided.” 111 N. H., at 9, 273 A. 2d, at 678, 679.
In addressing the question, we do not think it particularly important whether the charge is imposed on the passenger himself, to be collected by the airline, or on the airline, to be passed on to the passenger if it chooses. In either case, it is the act of enplanement and the consequent use of runways and other airport facilities that give rise to the obligation. Our inquiry
Our decisions concerning highway tolls are instructive. They establish that the States are empowered to develop “uniform, fair and practical” standards for this type of fee. While the Court has invalidated as wholly unrelated to road use a toll based on the carrier‘s seating capacity, Interstate Transit, Inc. v. Lindsey, 283 U. S. 183 (1931); Sprout v. South Bend, 277 U. S. 163 (1928), and the amount of gasoline over 20 gallons in the carrier‘s gas tank, McCarroll v. Dixie Greyhound Lines, Inc., 309 U. S. 176 (1940), we have sustained numerous tolls based on a variety of measures of actual use, including: horsepower, Hendrick v. Maryland, supra; Kane v. New Jersey, 242 U. S. 160 (1916); number and capacity of vehicles, Clark v. Poor, 274 U. S. 554 (1927); mileage within the State, Interstate Busses Corp. v. Blodgett, 276 U. S. 245 (1928); gross-ton mileage, Continental Baking Co. v. Woodring, 286 U. S. 352 (1932); carrying capacity, Hicklin v. Coney, 290 U. S. 169 (1933); and manufacturer‘s rated capacity and weight of trailers, Dixie Ohio Express Co. v. State Revenue Comm‘n, 306 U. S. 72 (1939).
We have also held that a State may impose a flat fee for the privilege of using its roads, without regard to the actual use by particular vehicles, so long as the fee is not excessive. Aero Mayflower Transit Co. v. Georgia Public Service Comm‘n, 295 U. S. 285 (1935); Morf v. Bingaman, 298 U. S. 407 (1936); Aero Mayflower Transit Co. v. Board of Railroad Comm‘rs, 332 U. S. 495 (1947). And in Capitol Greyhound Lines v. Brice, 339 U. S. 542 (1950), the Court sustained a Maryland highway toll of “2% upon the fair market value
“Complete fairness would require that a state tax formula vary with every factor affecting appropriate compensation for road use. These factors, like those relevant in considering the constitutionality of other state taxes, are so countless that we must be content with ‘rough approximation rather than precision.’ Harvester Co. v. Evatt, 329 U. S. 416, 422-423. Each additional factor adds to administrative burdens of enforcement, which fall alike on taxpayers and government. We have recognized that such burdens may be sufficient to justify states in ignoring even such a key factor as mileage, although the result may be a tax which on its face appears to bear with unequal weight upon different carriers. Aero Transit Co. v. Georgia Comm‘n, 295 U. S. 285, 289. Upon this type of reasoning rests our general rule that taxes like that of Maryland here are valid unless the amount is shown to be in excess of fair compensation for the privilege of using state roads.” Id., at 546-547.
Thus, while state or local tolls must reflect a “uniform, fair and practical standard” relating to public expenditures, it is the amount of the tax, not its formula, that is of central concern. At least so long as the toll is based on some fair approximation of use or privilege
The Indiana and New Hampshire charges meet those standards. First, neither fee discriminates against interstate commerce and travel. While the vast majority of passengers who board flights at the airports involved are traveling interstate, both interstate and intrastate flights are subject to the same charges. Furthermore, there is no showing of any inherent difference between these two classes of flights, such that the application of the same fee to both would amount to discrimination against one or the other. See Nippert v. Richmond, 327 U. S. 416 (1946).
Second, these charges reflect a fair, if imperfect, approximation of the use of facilities for whose benefit they are imposed. We recognize that in imposing a fee on the boarding of commercial flights, both the Indiana and New Hampshire measures exempt in whole or part a majority of the actual number of persons who use facilities of the airports involved. Their number includes certain classes of passengers, such as active members of the military and temporary layovers,7 deplaning commercial passengers,8 and passengers on noncommercial flights,9 nonscheduled commercial flights,10 and commer-
The measures before us also reflect rational distinctions among different classes of passengers and aircraft. Commercial air traffic requires more elaborate navigation and terminal facilities, as well as longer and more costly runway systems, than do flights by smaller private planes.12 Commercial aviation, therefore, may be made
Third, the airlines have not shown these fees to be excessive in relation to costs incurred by the taxing authorities. The record in No. 70-99 shows that in
This omission in No. 70-212 suffices to dispose of the final attack by appellants in that case on the New Hampshire statute. Appellants argue that the statute “on its face belies any legislative intent to impose an exaction based solely on use” because only 50% of its revenue is allocated to the state aeronautical fund while “the remaining fifty per cent is allocated to the municipalities or airport authorities owning the landing areas at which the fees were imposed in the form of unrestricted general revenues.” Brief 51-52. Yet so long as the funds received by local authorities under the statute are not shown to exceed their airport costs, it is immaterial whether those funds are expressly earmarked for airport use. The State‘s choice to reimburse local expenditures through unrestricted rather than restricted revenues is not a matter of concern to these appellants. See Clark v. Poor, 274 U. S., at 557; Morf v. Bingaman, 298 U. S., at 412; Aero Mayflower Transit Co. v. Board of Railroad Comm‘rs, 332 U. S., at 502-505.
We conclude, therefore, that the provisions before us impose valid charges on the use of airport facilities constructed and maintained with public funds. Furthermore, we do not think that they conflict with any federal policies furthering uniform national regulation
“the airport operator or owner will maintain a fee and rental structure for the facilities and services being provided the airport users which will make the airport as self-sustaining as possible under the circumstances existing at that particular airport, taking into account such factors as the volume of traffic and economy of collection.”
49 U. S. C. § 1718 (8) .
The commercial airlines argue in these cases that a proliferation of these charges in airports over the country will eventually follow in the wake of a decision sustaining the validity of the Indiana and New Hampshire fees, and that this is itself sufficient reason to adjudge the charges repugnant to the Commerce Clause. “If such levies were imposed by each airport along a traveller‘s route, the total effect on the cost of air transportation could be prohibitive, the competitive structure of air carriers could be affected, and air transportation, compared to other forms of transportation, could be seriously impaired.” Brief for Appellants in No. 70-212, p. 44. The argument relies on Bibb v. Navajo Freight Lines, Inc., 359 U. S. 520 (1959). There the Court invalidated an Illinois statute requiring that trucks and trailers using Illinois highways be equipped at the state line with a contour mudguard of specified design.
The judgment in No. 70-99 is reversed; the judgment in No. 70-212 is affirmed.
It is so ordered.
MR. JUSTICE POWELL took no part in the consideration or decision of these cases.
MR. JUSTICE DOUGLAS, dissenting.
These cases are governed by Crandall v. Nevada, 6 Wall. 35, which must be overruled if we are to sustain the instant taxes.
One case involves an Indiana tax of $1 on every enplaning commercial airline passenger at the Evansville Airport. The other involves a New Hampshire $1 tax on every passenger enplaning a scheduled commercial aircraft with a gross weight of 12,500 pounds or more and a 50¢ tax on every passenger enplaning such aircraft with a gross weight of less than 12,500 pounds.
The carriers are made responsible for paying, accounting for, and remitting the fee to the local authority.
Crandall v. Nevada, decided before the
“He has a right to free access to its sea-ports, through which all the operations of foreign trade and commerce are conducted, to the sub-treasuries, the land offices, the revenue offices, and the courts of justice in the several States, and this right is in its nature independent of the will of any State over whose soil he must pass in the exercise of it.” Id., at 44.
And he quoted with approval from the dissenting opinion in the Passenger Cases, 7 How. 283, 492:
“‘For all the great purposes for which the Federal government was formed we are one people, with one common country. We are all citizens of the United States, and as members of the same community must have the right to pass and repass through every part of it without interruption, as freely as in our own States. And a tax imposed by a State, for entering its territories or harbors, is inconsistent with the rights which belong to citizens of other States as members of the Union, and with the objects which that Union was intended to attain. Such a power in the States could produce nothing but discord and mutual irritation, and they very clearly do not possess it.‘” 6 Wall., at 48-49.
Usually the right to travel has been founded on the Commerce Clause.1 See United States v. Guest, 383 U. S. 745, 758-759. Some, including myself, have thought the right to travel was a privilege and immunity of national
Heretofore, we have held that a tax imposed on a carrier but measured by the number of passengers is no different from a direct exaction upon the passengers themselves, whether or not the carrier is authorized to collect the tax from the passengers. Pickard v. Pullman Southern Car Co., 117 U. S. 34, 46; State Freight Tax Case, 15 Wall. 232, 281. To be sure, getting onto a plane is an intrastate act. But a tax imposed on a local activity that is related to interstate commerce is valid only if the local activity is not such an integral part of interstate commerce that it cannot be realistically separated from it.4 Michigan-Wisconsin Pipe Line Co. v. Calvert,
The same is true here, for the step of the passenger enplaning the aircraft is but an instant away from and an inseparable part of an interstate flight.
Of course interstate commerce can be made to pay its fair share of the cost of the local government whose protection it enjoys. But though a local resident can be made to pay taxes to support his community, he cannot be required to pay a fee for making a speech or exercising any other
Are we now to assume that Calvert and Murdock are no longer the law?
I would affirm the Indiana judgment and reverse New Hampshire‘s.
