42 N.E.2d 34 (Ind. 1942), 27647, Department of Treasury of State of Ind. v. Allied Mills
|Citation:||42 N.E.2d 34, 220 Ind. 340|
|Party Name:||DEPARTMENT OF TREASURY OF STATE OF INDIANA et al. v. ALLIED MILLS, Inc.|
|Case Date:||June 08, 1942|
|Court:||Supreme Court of Indiana|
Appeal from Superior Court, Allen County; Edward W. Meyers, judge.
George N. Beamer, Atty. Gen., and Joseph P. McNamara and David I. Day, Jr., Deputy Attys. Gen., for appellants.
Barrett, Barrett & McNagny, of Ft. Wayne, for appellee.
[220 Ind. 341] SHAKE, Judge.
The appellee brought this action to recover certain taxes paid by it under the Indiana Gross Income Tax Act. Ch. 50, Acts 1933, Ch. 117, Acts 1937, § 64-2601 et seq., Burns' 1933, § 64-2601 et seq., Burns' Dec.1941 Supp. § 15981 et seq., Baldwin's 1934, § 15981 et seq., Baldwin's May, 1937, Supp. The judgment was against the state, which has appealed. What we deem to be the controlling facts are not seriously in dispute.
The appellee is an Indiana corporation engaged in the manufacture and sale of live stock and poultry feeds, in connection with which it operates a number of factories. In the conduct of its business the appellee divided this state into three geographical areas, each of which was served from a designated factory located at Fort Wayne, Indiana, Peoria, Illinois, or East St. Louis, Illinois. The facilities of these factories were substantially alike and the method of distribution adopted was for the purpose of taking advantage of favorable freight rates, which were reflected in sale prices, and not to evade taxes. The gross income with which we are concerned was derived from sales to resident customers in Indiana to whom deliveries were made from the plants in Illinois,
pursuant to orders taken in Indiana and accepted in Illinois.
By the terms of our act there is exempted from taxation 'So much of such gross income as is derived from business conducted in commerce between this state and other states of the United States, or between this state and foreign countries, to the extent to which the state of Indiana is prohibited from taxing under the Constitution of the United States of America'. § 64-2606, Burns' 1933, § 15986, Baldwins' 1934. Consequently, our problem is that of determining whether the tax here sought to be imposed is prohibited by the commerce[220 Ind. 342] clause of the Constitution of the United States, as interpreted and applied by the Supreme Court of the United States.
To continue readingFREE SIGN UP