Central Greyhound Lines, Inc. v. Mealey, 334 U.S. 653 (1948)

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Central Greyhound Lines, Inc. v. Mealey

No. 14

Argued October 13, 1947
Decided June 14, 1948
334 U.S. 653

APPEAL FROM THE COURT OF APPEALS OF NEW YORK

Syllabus

1. The validity of a state tax under the Federal Constitution was challenged before the State Tax Commission of New York and on review before the Appellate Division of the Supreme Court. Notwithstanding a claim that the only question presented was one of statutory construction, the Court of Appeals of New York expressly sustained the constitutionality of the tax and certified in its remittitur that it had done so. On appeal to this Court, held: the constitutional question is properly before this Court for review. Pp. 654-655.

2. A common carrier by motor vehicle challenged the validity under the Federal Constitution of a New York tax on its gross receipts from transportation of passengers between two points in the State but over a route 42.53% of which was in New Jersey and Pennsylvania.

Held: New York may constitutionally tax gross receipts from the transportation apportioned as to the mileage within the State; but the tax on gross receipts from that portion of the mileage outside the State unduly burdens interstate commerce, in violation of the Commerce Clause of the Constitution. Pp. 655-664.

296 N.Y. 18, 68 N.E.2d 855, reversed.

The constitutionality of a tax levied by New York on gross receipts of a common carrier from transportation between two points in New York, but largely through New Jersey and Pennsylvania, was sustained by the State Tax Commission, the Appellate Division of the Supreme Court of New York (266 App.Div. 648, 44 N.Y.S.2d 652), and the Court of Appeals of New York (296 N.Y. 18, 68 N.E.2d 855). On appeal to this Court, reversed and remanded, p. 664.