Privilege Taxes

Privilege Taxes (Duties on Exports or Imports)

A state law requiring importers to take out a license to sell imported goods amounts to an indirect tax on imports and hence is unconstitutional.1 Likewise, a franchise tax upon foreign corporations engaged in importing nitrate and selling it in the original packages, 2 a tax on sales by brokers 3 and auctioneers 4 of imported merchandise in original packages, and a tax on the sale of goods in foreign commerce consisting of an annual license fee plus a percentage of gross sales,5 have been held invalid. On the other hand, pilotage fees,6 a tax upon the gross sales of a purchaser from the importer,7 a license tax upon dealing in fish which, through processing, handling, and sale, have lost their distinctive character as imports,8 an annual license fee imposed on persons engaged in buying and selling foreign bills of exchange,9 and a tax upon the right of an alien to receive property as heir, legatee, or donee of a deceased person 10 have been held not to be duties on imports or exports.

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References

This text about Privilege Taxes is based on “The Constitution of the United States of America: Analysis and Interpretation”, published by the U.S. Government Printing Office.

[Footnote 1] Brown v. Maryland, 25 U.S. (12 Wheat.) 419, 447 (1827).

[Footnote 2] Anglo-Chilean Corp. v. Alabama, 288 U.S. 218 (1933).

[Footnote 3] Low v. Austin, 80 U.S. (13 Wall.) 29, 33 (1872).

[Footnote 4] Cook v. Pennsylvania, 97 U.S. 566, 573 (1878).

[Footnote 5] Crew Levick Co. v. Pennsylvania, 245 U.S. 292 (1917).

[Footnote 6] Cooley v. Board of Wardens, 53 U.S. (12 How.) 299, 313 (1851).

[Footnote 7] Waring v. The Mayor, 75 U.S. (8 Wall.) 110, 122 (1869). See also Pervear v. Massachusetts. 72 U.S. (5 Wall.) 475, 478 (1867); Schollenberger v. Pennsylvania, 171 U.S. 1, 24 (1898).

[Footnote 8] Gulf Fisheries Co. v. MacInerney, 276 U.S. 124 (1928).

[Footnote 9] Nathan v. Louisiana, 49 U.S. (8 How.) 73, 81 (1850).

[Footnote 10] Mager v. Grima, 49 U.S. (8 How.) 490 (1850).

Tables of Contents

• Privilege Taxes and other Topics in the Contents – Article 1 of the U.S. Constitution
• U.S. Constitutional Law Category
• List of amendments to the U.S. Constitution
• Privilege Taxes and other Topics in the Constitution Contents
• Interpretation of the U.S. Constitution (Table of Contents)
• Clauses of the Constitution (Table of Contents)