Background
Wheeling Steel Corp., incorporated in Delaware was authorized to do business in Ohio, and maintained four of its eight manufacturing plants in Ohio. Wheeling's general offices were/are in Wheeling, West Virginia and had sales offices in twelve other states, including Ohio. All accounts were billed and collected from the corporation's main office in Wheeling, West Virginia.
National Distillers Products Corporation was incorporated in Virginia and maintained its principal place of business in New York. National Distillers was admitted to do business in Ohio and maintained both a distillery and a warehouse in Ohio, as well as maintaining distilleries and warehouses in six other states. National Distillers operated its payroll through the local offices and conducted all other fiscal affairs from its office in New York. National Distillers did not maintain a sales office in Ohio; orders from Ohio were forwarded to the office in New York for approval.
Both appellants paid all taxes required to do business in Ohio, all taxes on real and personal property in Ohio, and all franchise taxes. Additionally, Wheeling paid ad valorem taxes to West Virginia on all accounts receivable, including on those accounts receivable taxed by Ohio, pursuant to Wheeling Steel Corp. v. Fox , 298 US 193. National Distillers' accounts receivable were taxed by neither Virginia nor New York.
The Ohio Tax Commissioner assessed ad valorem taxes on accounts receivable derived from shipments originating from Ohio manufacturing plants belonging to Wheeling Steel Corporation and National Distillers Products Corporation on the grounds that such accounts "result from the sale of property from a stock of goods maintained within the state." [1] The Board of Tax Appeals affirmed both assessments.
Both appellants appealed the Tax Board's decision. The Supreme Court of Ohio affirmed the tax in both cases, [2] which were then brought before the Supreme Court of the United States.
The Fourteenth Amendment to the United States Constitution was adopted on July 9, 1868, as one of the Reconstruction Amendments. Often considered as one of the most consequential amendments, it addresses citizenship rights and equal protection under the law and was proposed in response to issues related to former slaves following the American Civil War. The amendment was bitterly contested, particularly by the states of the defeated Confederacy, which were forced to ratify it in order to regain representation in Congress. The amendment, particularly its first section, is one of the most litigated parts of the Constitution, forming the basis for landmark Supreme Court decisions such as Brown v. Board of Education (1954) regarding racial segregation, Roe v. Wade (1973) regarding abortion, Bush v. Gore (2000) regarding the 2000 presidential election, and Obergefell v. Hodges (2015) regarding same-sex marriage. The amendment limits the actions of all state and local officials, and also those acting on behalf of such officials.
Corporate personhood is the legal notion that a corporation, separately from its associated human beings, has at least some of the legal rights and responsibilities enjoyed by natural persons. In most countries, corporations, as legal persons, have a right to enter into contracts with other parties and to sue or be sued in court in the same way as natural persons or unincorporated associations of persons.
The Dormant Commerce Clause, or Negative Commerce Clause, in American constitutional law, is a legal doctrine that courts in the United States have inferred from the Commerce Clause in Article I of the US Constitution. The primary focus of the doctrine is barring state protectionism. The Dormant Commerce Clause is used to prohibit state legislation that discriminates against interstate or international commerce. Courts first determine whether a state regulation discriminates on its face against interstate commerce or whether it has the purpose or effect of discriminating against interstate commerce. If the statute is discriminatory, the state has the burden to justify both the local benefits flowing from the statute and to show the state has no other means of advancing the legitimate local purpose.
Santa Clara County v. Southern Pacific Railroad Company, 118 U.S. 394 (1886), is a corporate law case of the United States Supreme Court concerning taxation of railroad properties. The case is most notable for a headnote stating that the Equal Protection Clause of the Fourteenth Amendment grants constitutional protections to corporations.
The Equal Protection Clause is part of the first section of the Fourteenth Amendment to the United States Constitution. The clause, which took effect in 1868, provides "nor shall any State ... deny to any person within its jurisdiction the equal protection of the laws". It mandates that individuals in similar situations be treated equally by the law.
National Labor Relations Board v Jones & Laughlin Steel Corporation, 301 U.S. 1 (1937), was a United States Supreme Court case that upheld the constitutionality of the National Labor Relations Act of 1935, also known as the Wagner Act. The case represented a major expansion in the Court's interpretation of Congress's power under the Commerce Clause and effectively spelled the end to the Court's striking down of New Deal economic legislation.
Strauder v. West Virginia, 100 U.S. 303 (1880), was a landmark decision of the Supreme Court of the United States about racial discrimination and United States constitutional criminal procedure. Strauder was the first instance where the Supreme Court reversed a state court decision denying a defendant's motion to remove his criminal trial to federal court pursuant to Section 3 of the Civil Rights Act of 1866.
Harper v. Virginia State Board of Elections, 383 U.S. 663 (1966), was a case in which the U.S. Supreme Court found that Virginia's poll tax was unconstitutional under the equal protection clause of the 14th Amendment. In the late 19th and early 20th centuries, eleven southern states established poll taxes as part of their disenfranchisement of most blacks and many poor whites. The Twenty-fourth Amendment to the United States Constitution (1964) prohibited poll taxes in federal elections; five states continued to require poll taxes for voters in state elections. By this ruling, the Supreme Court banned the use of poll taxes in state elections.
San Antonio Independent School District v. Rodriguez, 411 U.S. 1 (1973), was a case in which the Supreme Court of the United States held that San Antonio Independent School District's financing system, which was based on local property taxes, was not an unconstitutional violation of the Fourteenth Amendment's equal protection clause.
DaimlerChrysler Corp. v. Cuno, 547 U.S. 332 (2006), is a United States Supreme Court case involving the standing of taxpayers to challenge state tax laws in federal court. The Court unanimously ruled that state taxpayers did not have standing under Article III of the United States Constitution to challenge state tax or spending decisions simply by virtue of their status as taxpayers. Chief Justice John Roberts delivered the majority opinion, which was joined by all of the justices except for Ruth Bader Ginsburg, who concurred separately.
Braunfeld v. Brown, 366 U.S. 599 (1961), was a case decided by the United States Supreme Court. In a 6–3 decision, the Court held that a Pennsylvania law forbidding the sale of various retail products on Sunday was not an unconstitutional interference with religion as described in the First Amendment to the United States Constitution.
Mutual Film Corporation v. Industrial Commission of Ohio, 236 U.S. 230 (1915), was a landmark decision of the US Supreme Court ruling by a 9-0 vote that the free speech protection of the Ohio Constitution, which was substantially similar to the First Amendment of the United States Constitution, did not extend to motion pictures.
Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977), is a United States Supreme Court case regarding the Commerce Clause and sales tax.
Williams v. Rhodes, 393 U.S. 23 (1968), was a case before the United States Supreme Court.
Regan v. Taxation with Representation of Washington, 461 U.S. 540 (1983), was a case in which the United States Supreme Court upheld lobbying restrictions imposed on tax-exempt non-profit corporations.
Hunter v. Underwood, 471 U.S. 222 (1985), was a case in which the United States Supreme Court, in a unanimous decision, invalidated the criminal disenfranchisement provision of § 182 of the Alabama Constitution as a violation of the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution.
Article I, § 10, clause 2 of the United States Constitution, known as the Import-Export Clause, prevents the states, without the consent of Congress, from imposing tariffs on imports and exports above what is necessary for their inspection laws and secures for the federal government the revenues from all tariffs on imports and exports. Several nineteenth century Supreme Court cases applied this clause to duties and imposts on interstate imports and exports. In 1869, the United States Supreme Court ruled that the Import-Export Clause only applied to imports and exports with foreign nations and did not apply to imports and exports with other states, although this interpretation has been questioned by modern legal scholars.
Hawkins v. Town of Shaw, 437 F.2d 1286 was a class-action lawsuit over equal distribution of municipal services and infrastructure which reached the United States Court of Appeals for the Fifth Circuit. The plaintiffs, black citizens of Shaw, alleged that the town spent tax money for services disproportionately in white neighborhoods, resulting in unequal access to street paving, sanitary sewers, stormwater drainage, street lighting, and water pressure. The Appeals Court, overruling the United States District Court for the Northern District of Mississippi, found in favor of the plaintiffs, determining that Shaw had violated their right to equal protection under the law, and ordered Shaw to submit a plan for equalizing its services.
Zauderer v. Office of Disciplinary Counsel of Supreme Court of Ohio, 471 U.S. 626 (1985), was a United States Supreme Court case in which the Court held that states can require an advertiser to disclose certain information without violating the advertiser's First Amendment free speech protections as long as the disclosure requirements are reasonably related to the State's interest in preventing deception of consumers. The decision effected identified that some commercial speech may have weaker First Amendment free speech protections than non-commercial speech and that states can compel such commercial speech to protect their interests; future cases have relied on the "Zauderer standard" to determine the constitutionality of state laws that compel commercial speech as long as the information to be disclosed is "purely factual and uncontroversial".
