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Full-Text Articles in Tax Law

Tax Policy And Our Democracy, Clinton G. Wallace Jan 2020

Tax Policy And Our Democracy, Clinton G. Wallace

Michigan Law Review

Review of Anthony C. Infanti's Our Selfish Tax Laws: Toward Tax Reform That Mirrors Our Better Selves.


An Economic And Political Look At Federalism In Taxation, Daniel Shaviro Mar 1992

An Economic And Political Look At Federalism In Taxation, Daniel Shaviro

Michigan Law Review

Part I of this article examines the reasons for preferring locationally neutral taxes and explains the basic tension between locational neutrality and state and local autonomy in taxation. Part II examines the federal judicial check on state and local taxation, which often relies on a principle barring discrimination against outsiders or interstate commerce. Part III explores the need for a broad federal judicial check by examining state and local governments' reasons for imposing (or avoiding) locationally distortive taxes, the countervailing benefits of allowing such governments broad autonomy in taxation, and Congress' willingness to strike down locationally distortive taxes under its …


Widow's Succession In Common-Law Property State To Husband's Rights In Her Half Of Community Property Is Taxable And Valued At One-Half Of Entire Community--In Re Kessler's Estate, Michigan Law Review Nov 1965

Widow's Succession In Common-Law Property State To Husband's Rights In Her Half Of Community Property Is Taxable And Valued At One-Half Of Entire Community--In Re Kessler's Estate, Michigan Law Review

Michigan Law Review

While residing with his wife in California, decedent purchased stock, which under California law became community property. The couple later moved to Ohio, a common-law property state, where decedent died. An Ohio probate court approved the executor's determination that the widow's one-half interest in the stock was not subject to the Ohio succession tax. On appeal by the state tax commissioner to the Ohio Supreme Court, held, reversed, three judges dissenting. A wife's succession to her husband's right to manage and control her half of the community property is subject to the Ohio succession tax on joint and survivorship …


Constitutional Law - Due Process - Collection Of State Use Tax From Nonresident Vendor, Jerome M. Salle Jan 1961

Constitutional Law - Due Process - Collection Of State Use Tax From Nonresident Vendor, Jerome M. Salle

Michigan Law Review

Plaintiff, a Georgia corporation not qualified to do business in Florida, solicited orders for merchandise from Florida residents through independent brokers who forwarded the orders to plaintiff's Georgia office for acceptance. Plaintiff did not maintain any place of business in Florida nor have any regular employee or agent there. In a suit to enjoin the enforcement of a distress warrant issued upon plaintiff's failure to collect the Florida use tax, the chancellor denied relief and the Florida Supreme Court affirmed. On appeal to the United States Supreme Court, held, affirmed, one Justice dissenting. Enforcement of the statute requiring collection …


Constitutional Law - Governmental Immunity - Immunity Of Agent Of Federal Government To State Taxation, Robert M. Steed S.Ed. Nov 1960

Constitutional Law - Governmental Immunity - Immunity Of Agent Of Federal Government To State Taxation, Robert M. Steed S.Ed.

Michigan Law Review

E. I. du Pont de Nemours and Company contracted with the Atomic Energy Commission to construct and operate the Savannah River Project for development of the hydrogen bomb for a fee of one dollar. Under the contract du Pont was to purchase all materials and supplies with funds furnished by the United States, title to vest in the government immediately when it passed from the vendor. South Carolina attempted to apply its sales and use taxes to these purchases. In an action by the United States and du Pont before a statutory three-judge district court to enjoin collection of these …


Michigan Title Examinations And The 1954 Revenue Code's New General Lien Provisions, L. Hart Wright Jan 1955

Michigan Title Examinations And The 1954 Revenue Code's New General Lien Provisions, L. Hart Wright

Michigan Law Review

Title examiners, and more particularly their clients, have long suffered from a controversy-limited almost exclusively to Michigan- involving the methods by which the United States Treasury Department could perfect general federal tax liens. The December 1952 issue of the Michigan Law Review carried an article by the present writer pointing up the irreconcilable difference which has existed for a quarter of a century between the type of record notice which the Treasury was willing to provide prospective bona fide purchasers et al., and the quite different and more demanding type which the Michigan Legislature insisted upon if the local offices …


Constitutional Law--Import-Export Clause--Validity Of A State Gross Receipts Tax On Common Carriers Transporting Imports And Exports, Roger D. Anderson S.Ed. Nov 1951

Constitutional Law--Import-Export Clause--Validity Of A State Gross Receipts Tax On Common Carriers Transporting Imports And Exports, Roger D. Anderson S.Ed.

Michigan Law Review

The State of Maryland levied a nondiscriminatory gross receipts tax on revenues of common carriers operating within the state, apportioned on the basis of trackage within Maryland to trackage everywhere. Petitioners, who are common carriers operating within Maryland, objected to this tax to the extent that it constituted a tax on gross receipts derived from transporting imports and exports on the grounds that it violated the import-export clause. The court of appeals of Maryland declared the tax valid. On appeal, held, affirmed. Where the tax is on an activity connected with the import or export of goods, rather than …


Constitutional Law-Commerce Clause-State Taxation Of Interstate Commerce, William H. Bates Jun 1951

Constitutional Law-Commerce Clause-State Taxation Of Interstate Commerce, William H. Bates

Michigan Law Review

Appellant, a Missouri corporation, was domiciled in Illinois and engaged in interstate trucking of commodities to and from Connecticut. The appellant had twenty-seven employees, office equipment, pick-up trucks and two terminals within Connecticut. Approximately one-third to one-half of appellant's business originated in Connecticut, but a very small percentage of the total mileage traveled by its trucks lay within the state. Appellant was not engaged in intrastate commerce, nor had it been authorized to transact such business. Under the Connecticut Corporation Business Tax Act of 1935 appellant was assessed for taxes and penalties. The statute imposed a franchise tax upon certain …


Taxation-Immunity Of Federal Bonds To State Taxation, Lenamyra Saulson Mar 1951

Taxation-Immunity Of Federal Bonds To State Taxation, Lenamyra Saulson

Michigan Law Review

A New Jersey statute imposed a tax on domestic stock insurance corporations on the value of intangible property exclusive of tax-exempt property but required an assessment against all intangible property of not less than fifteen per cent of capital and surplus in excess of liabilities. In conformity with this statute, a tax was imposed on the appellant, a domestic stock insurance corporation, of fifteen per cent of the entire net worth, without deduction of the principal amount of tax-exempt United States bonds and accrued interest thereon. The appellant appealed to the United States Supreme Court on the ground that the …


Conflict Of Laws-Enforcing Tax Laws Of Sister States, Bernard L. Trott S. Ed. Apr 1949

Conflict Of Laws-Enforcing Tax Laws Of Sister States, Bernard L. Trott S. Ed.

Michigan Law Review

In the recent case City of Detroit v. Proctor, the defendant, a resident of Detroit, was owner of personal property located there in the year 1939. The city levied a tax on this property, which tax became a debt under the laws of Michigan on the first day of April, 1939, and became due and · payable on the 15th of July, 1939. During the month of June, 1939, the defendant removed both his person and his property from the state of Michigan and has since resided elsewhere. The treasurer of the city of Detroit, who is empowered by …


Taxation-Assessment Of Government-Owned Property Leased To Private Enterprise, Allen C. Holmes Apr 1944

Taxation-Assessment Of Government-Owned Property Leased To Private Enterprise, Allen C. Holmes

Michigan Law Review

The Board of Property Assessment, Appeals, and Review of Allegheny County for ad valorem taxes in the state of Pennsylvania increased the assessed value of the realty of the Mesta Machine Company by the sum of $618,000 to include the value of certain additional machinery which had been installed on the premises. The machinery was leased by the United States Government to the company and was placed in the factory in order that the company might manufacture heavy field guns for the Government, under a cost-plus-fixed-fee contract. The legal title and the beneficial ownership of the machinery remained in the …


Recent Decisions, Michigan Law Review Oct 1942

Recent Decisions, Michigan Law Review

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.


Taxation-- Use Tax--Collection By A Foreign Corporation--Inapplicable Where Foreign Corporation Makes Strictly Interstate Sales, Michigan Law Review Mar 1942

Taxation-- Use Tax--Collection By A Foreign Corporation--Inapplicable Where Foreign Corporation Makes Strictly Interstate Sales, Michigan Law Review

Michigan Law Review

The Michigan Use Tax Act requires every seller of tangible personal property for storage, use or other consumption in the state of Michigan, engaged in the business of selling at retail in Michigan, to collect the tax imposed by the act. Plaintiff is an Illinois corporation operating a merchant tailoring establishment in Chicago. It takes orders in Michigan, from residents, for clothes, fills the orders in Chicago and, by agreement, the title to the clothes is vested in the purchaser upon delivery in Chicago to an interstate carrier. It maintains a branch office in Detroit where samples are kept, salesmen …


Constitutional Law-Taxation - Express Immunity Of Federal Instrumentalities, Michigan Law Review Feb 1942

Constitutional Law-Taxation - Express Immunity Of Federal Instrumentalities, Michigan Law Review

Michigan Law Review

A federal land bank filed a complaint against defendant lumber company and the tax commissioner seeking exemption from a state sales tax on purchases of lumber by the bank. The Supreme Court of North Dakota found the bank liable for the tax and on certiorari to the United States Supreme Court it was held, that the Federal Farm Loan Act conferred express immunity from the tax upon the bank and that such Congressional exemption was constitutional by virtue of the "necessary and proper" clause. Federal Land Bank of St. Paul v. Bismarck Lumber Co. (U.S. 1941) 62 S. Ct. …


Taxation - Power Of Municipality To Tax Income Of State Officials, Michigan Law Review Jan 1942

Taxation - Power Of Municipality To Tax Income Of State Officials, Michigan Law Review

Michigan Law Review

A Pennsylvania statute empowered the city of Philadelphia to levy taxes on "persons, transactions, occupations, privileges, subjects and personal property" within Philadelphia. Pursuant to such authority the city enacted an ordinance imposing a tax of one and one-half per cent annually on salaries, wages, commissions, and other compensation earned by nonresidents for work performed in Philadelphia. Plaintiff, employed by an agency of Pennsylvania engaged in performance of governmental functions, brought suit to restrain the collection of the tax. Held, the statute grants the power to tax salaries of state officials and is not invalidated by any doctrine of governmental …


Constitutional Law - Federal Immunity From State Tax, David N. Mills Dec 1941

Constitutional Law - Federal Immunity From State Tax, David N. Mills

Michigan Law Review

An Alabama statute imposed an inchoate lien on all property in the state as of October 1st of each year, such lien to continue until taxes for the ensuing year were paid. The United States acquired title to certain lands after October 1, 1936, but before the final 1937 assessment was made and the rate for county taxes set. None of the 1937 taxes were due. The United States did not pay the taxes, and on their becoming delinquent, sued to quiet title. Held, by a unanimous court, that although Alabama could not foreclose the lien without obtaining the …


Trusts - Apportionment Of Annual Taxes Between Life Tenant And Remainderman, Charles F. Dugan Nov 1940

Trusts - Apportionment Of Annual Taxes Between Life Tenant And Remainderman, Charles F. Dugan

Michigan Law Review

Annual taxes on real estate in Massachusetts were assessed on January 1 of each year, and were payable on July and October l, The will set up a trust to pay income to the tenant for life, and to pay the principal to the remainderman. The trustees sought to retain sufficient funds out of income to meet the next year's taxes, fearing that the tenant might not live long enough after January 1 to accumulate sufficient income to meet the taxes, and they brought this bill for instructions. The probate court entered a decree sustaining the trustees' contentions. On appeal, …


Taxation - Privilege Tax On Foreign Corporations - Due Process And Commerce Clauses - Validity Of Formula, James W. Deer May 1940

Taxation - Privilege Tax On Foreign Corporations - Due Process And Commerce Clauses - Validity Of Formula, James W. Deer

Michigan Law Review

The state of Texas levied an annual franchise tax on all corporations, both foreign and domestic, authorized to do business within the state. The tax was assessed on the basis of the amount of the total capital stock which was allocable to Texas, the allocation being based on the proportion that Texas gross receipts bore to total gross receipts. This formula, as applied to the Ford Motor Company, gave the statutory base of $23,000,000 on which Ford paid the tax under protest. The evidence showed that the Ford Motor Company had only an assembly plant in Texas worth $3,000,000, that …


Taxation-Income Tax -Jurisdiction -Trusts - State Tax On Resident Beneficiary's Net Income From Trust Established And Administered By Non-Resident Trustee, Allan A. Rubin May 1939

Taxation-Income Tax -Jurisdiction -Trusts - State Tax On Resident Beneficiary's Net Income From Trust Established And Administered By Non-Resident Trustee, Allan A. Rubin

Michigan Law Review

The state of Virginia imposed an income tax upon the income received by a resident of Virginia as beneficiary of a discretionary trust established and administered in New York by a resident of New York, which state had levied and collected an income tax on the entire income of the trust fund. Petitioner protested the payment of the Virginia tax, alleging the taking of property without due process of law and the denial of equal privileges in contravention of the Fourteenth Amendment of the Federal Constitution. Held, that the tax was valid, since it was ascertained by the beneficiary's …


Taxation - Compensating Use Tax - Theory - Burden On Interstate Commerce, Brackley Shaw Apr 1938

Taxation - Compensating Use Tax - Theory - Burden On Interstate Commerce, Brackley Shaw

Michigan Law Review

The California Use Tax Act of 1935 imposes an excise tax on the storage or use of personal property purchased in other states and brought into California. Plaintiff railroad bought materials and supplies in other states and stored them in California before installation on its interstate railroad system, and the tax was assessed on them. Held, the tax is unconstitutional as applied to such property as a direct burden on interstate commerce. Where the property was purchased for the sole purpose of being reserve equipment in an interstate commerce plant it is employed in interstate commerce from the time …


Taxation - Stevedoring As Interstate Commerce - Constitutionality Of Occupation Tax, Ralph Winkler Apr 1938

Taxation - Stevedoring As Interstate Commerce - Constitutionality Of Occupation Tax, Ralph Winkler

Michigan Law Review

The state of Washington enacted a business privilege tax, the amount of which was to be determined on a gross income basis. A domestic corporation had been servicing vessels engaged in interstate commerce in two ways-it supplied stevedores to the vessels, and it did the work of loading and unloading. In a bill to enjoin the collection of this tax the Supreme Court of Washington dismissed the suit on the ground that the corporation was not engaged in interstate commerce. On appeal, held (1) furnishing stevedores to the vessels without maintaining control over the operations of the workmen is a …


Taxation - Jurisdiction To Tax Intangibles - Business Situs, William Stout Gordon Dec 1937

Taxation - Jurisdiction To Tax Intangibles - Business Situs, William Stout Gordon

Michigan Law Review

The appellant, a Delaware corporation doing business in Minnesota, held the controlling interest in the stock of a large number of banks in numerous states. It transacted its corporate business and fiscal affairs in Minnesota and maintained a business office there. A property tax was imposed by Minnesota upon appellant's shares of stock in Montana and North Dakota state banking corporations. Appellant contended that, since Montana and North Dakota had imposed a property tax on the same shares, the Minnesota tax was contrary to the Fourteenth Amendment. The Court held that the shares of stock had acquired a "business situs" …


Constitutional Law - Validity Of A Compensating Use Tax - Commerce Clause, William J. Isaacson Jun 1937

Constitutional Law - Validity Of A Compensating Use Tax - Commerce Clause, William J. Isaacson

Michigan Law Review

Plaintiffs, appellees in this court, while engaged in the construction of a federal dam, brought into the state machinery purchased at retail in other states. The Washington Tax Commission demanded payment of a use tax on the machinery so purchased as required by the 1935 tax statutes. The plaintiffs refused to comply with the commission's order and received an in junction in the federal district court. The Washington legislature, under the heading "Compensating Tax," levied a two per cent excise on the use of all personal property purchased at retail after the effective date, the tax to be measured by …


Taxation - Exemption Of Federal Instrumentality -Property Of A Governmental Agency Used For Non-Governmental Purpose, Virginia M. Renz May 1937

Taxation - Exemption Of Federal Instrumentality -Property Of A Governmental Agency Used For Non-Governmental Purpose, Virginia M. Renz

Michigan Law Review

Oklahoma attempted to tax property used by the lessee of restricted Indian land in producing oil and gas. It was argued that the property was not taxable because the lessee was a federal instrumentality, and Congress had not consented to its taxation. Held, property is not exempt from a non-discriminatory ad valorem state tax merely because it is the property of a federal instrumentality. There should be no exemption unless the taxation imposes a direct burden upon the exertion of a federal governmental power. Taber v. Indian Territory Illuminating Oil Co., (U. S. 1937) 57 S. Ct. 334.


Taxation - Situs Of Intangibles - Business Situs, Michigan Law Review Apr 1937

Taxation - Situs Of Intangibles - Business Situs, Michigan Law Review

Michigan Law Review

A manufacturing corporation incorporated in Delaware and maintained a nominal office there, but had branch offices and factories in several states. Its principal office was in West Virginia. All contracts made by the branch offices were subject to approval by the home office and withdrawals from the bank deposits in the several states were under the control of the home office. A West Virginia statute placed an ad valorem property tax on corporations whose bank deposits and accounts receivable were "liable to taxation." The state court applied the statute to the bank deposits in banks outside the state and to …


Taxation - Special Assessments For Street Lighting, Herbert J. Bloom Mar 1937

Taxation - Special Assessments For Street Lighting, Herbert J. Bloom

Michigan Law Review

The city of Los Angeles, under the authority of the "Public Works and Utility Act" of California, passed two ordinances levying special assessments for street lighting purposes upon abutting property specially benefited according to the front foot rule. The validity of the ordinance ordering the necessary lighting posts and appliances, which were installed before the present proceeding was brought, was conceded. The other ordinance provided for the furnishing of electric current to light the public streets for a period of fourteen months. This was contested by the plaintiff, who owned three lots subject to the assessment, on the ground that …


Taxation-Validity Of Tax On Income Of Superintendent Of School Cafeteria System -Sovereign Immunity, Elbridge D. Phelps Jan 1937

Taxation-Validity Of Tax On Income Of Superintendent Of School Cafeteria System -Sovereign Immunity, Elbridge D. Phelps

Michigan Law Review

Petitioners, husband and wife, residents of Texas, made returns of community income for the year 1932, listing as exempt the salary of the wife who was superintendent of a non-profit cafeteria system operated by the Ft. Worth public schools for the exclusive patronage and benefit of teachers and students. The Commissioner of Internal Revenue refused the exemption and levied a deficiency tax of $105. On appeal from an affirmance of the commissioner's decision by the Board of Tax Appeals, held, reversed on the ground that the operation of the cafeteria system was a proper exercise of a governmental function …


Taxation - Exemption Of Federal Instrumentality From State Gasoline Tax Nov 1936

Taxation - Exemption Of Federal Instrumentality From State Gasoline Tax

Michigan Law Review

An Alabama statute provided that "Every distributor, refiner, retail dealer or storer of gasoline . . . shall pay an excise tax . . . upon the selling, distributing, storing or withdrawing from storage in this State for any use, gasoline . . . ." The plaintiff, a private corporation, sold gasoline to the United States for use in performing governmental functions without reporting it for taxation. When the state demanded payment, the plaintiff brought this suit to restrain collection. Held (Justices Cardozo and Brandeis dissenting), the operation of the statute violates the constitutional principle safeguarding the federal government against …


Taxation-State Taxes Upon Federal Instrumentalities-Who May Raise Question Of Unconstitutionality Mar 1935

Taxation-State Taxes Upon Federal Instrumentalities-Who May Raise Question Of Unconstitutionality

Michigan Law Review

In connection with the performance of a contract with the federal government, the plaintiff corporation was required to pay a state sales tax on lumber, cement, steel and other materials used in the construction work. An action was brought to enjoin the collection of the tax and to have it declared unconstitutional as impeding and hampering the federal government in the performance of its governmental functions, and as depriving the plaintiff of its property without due process of law. Held, the plaintiff is not a proper party to raise the question of the constitutionality of the tax: first, because …


Taxation-Tax On Rolling Stock-Situs Of Personal Property Employed In Interstate Commerce Jun 1934

Taxation-Tax On Rolling Stock-Situs Of Personal Property Employed In Interstate Commerce

Michigan Law Review

An Illinois corporation owned a fleet of tank cars which were used to carry oil from the corporation's Oklahoma refinery to other States. The State of Oklahoma sought to impose a tax upon the entire fleet, although the cars were outside of Oklahoma at least twenty days each month. Held, Oklahoma had only the jurisdiction to tax the average number of tank cars habitually employed within the State. Johnson Oil Refining Co. v. Oklahoma, 290 U.S. 158, 54 Sup. Ct. 152 (1933).