State v. Coca Cola Bottling Works, Inc.
Decision Date | 29 October 1940 |
Docket Number | 6 Div. 650. |
Parties | STATE v. COCA COLA BOTTLING WORKS, INC. |
Court | Alabama Court of Appeals |
Appeal from Circuit Court, Lamar County; V. W. Elmore, Judge.
Action by the State of Alabama against Coco Cola Bottling Works Inc., to recover license tax for engaging in business of wholesale dealer in bottled drinks. From a judgment for defendant, plaintiff appeals.
Reversed and rendered.
Thos S. Lawson, Atty. Gen., and John W. Lapsley and J. Edw Thornton, Asst. Attys. Gen., for appellant.
Oliver E. Young, of Vernon, for appellee.
The controlling question is whether a non-discriminatory privilege license laid upon "Each person engaged [in this State] in the business of selling at wholesale nonalcoholic, carbonated, or other soft drinks * * *" 1935 Rev.Code, Sec. 348, Schedule 129, Gen.Acts of Ala.1935, pp. 256, 441, 491, as applied to appellee (defendant), infringes the commerce clause of the Federal Constitution. This appeal challenges the correctness of the decision of the trial court in ruling in the affirmative with respect thereto.
The appellee, a non-resident corporation of Columbus, Mississippi, manufacturing bottled drinks of the kind described in the license schedule during the tax year 1936-37, sold at wholesale to retail dealers in Lamar County, Alabama, its said products, delivering the same by its trucks proceeding from its warehouse in Mississippi. Its method of selling in Alabama was as follows: At the beginning of the year the Alabama customers (merchants), desirous of purchasing the products, would sign a "blanket order," such as the one in evidence exhibited with the testimony of the witness Hays, to wit:
These orders were accomplished by appellee's salesmen and sent or taken by them to appellee in Mississippi. Upon execution of such an order, weekly deliveries were made to these customers of so much of the products--if any--as they might desire. Neither of the parties considered the written order as binding, but, to the contrary, when the appellee's truck would make its weekly visits to Alabama, the customers would "take" or not "take" the "drinks," as they desired; they would only "take" such number of cases as was needed or desired, but never more than the order stipulated. If none was desired none was delivered, and the witness Hays, while the order included it, "never did take any soda water."
Recent decisions of the Supreme Courts of the United States and of Alabama have clearly demonstrated that a license or privilege tax, such as the one involved here, does not, as applied to the transactions engaged in by appellee, impose upon interstate commerce such multiple or discriminatory burdens as to render it unconstitutional.
The questioned license schedule is a non-discriminatory, privilege tax in the buyer's state laid upon all alike who sell at wholesale in Alabama. It--using the "rationale" of the case of McGoldrick v. Berwind-White Coal Min. Co., 309 U.S. 33, 60 S.Ct. 388, 84 L.Ed. 565, 128 A.L.R. 876-- "neither discriminates against nor obstructs interstate commerce more than numerous other state taxes which have repeatedly been sustained as involving no prohibited regulation of interstate commerce." 309 U.S. 33, 60 S.Ct. 398, 84 L.Ed. 565, 128 A.L.R. 876.
A tax imposed by the buyer's state upon a sale of goods, (some instances in the original package), consummated by delivery to the purchaser at the end of an interstate journey, has been consistently sustained by the United States Supreme Court, whether the local seller has purchased the articles without the state for resale or the extra-state seller has shipped them into the taxing state for resale there.
McGoldrick case, supra, 309 U.S. 33, 60 S.Ct. 394, 84 L.Ed. 565, 128 A.L.R. 876.
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