U.S. v. City of Huntington, W.Va., No. 92-2074
| Court | United States Courts of Appeals. United States Court of Appeals (4th Circuit) |
| Writing for the Court | Before HALL and LUTTIG; K.K. HALL |
| Citation | 999 F.2d 71 |
| Parties | UNITED STATES of America, Plaintiff-Appellant, v. CITY OF HUNTINGTON, WEST VIRGINIA, Defendant-Appellee. . Argued: |
| Docket Number | No. 92-2074 |
| Decision Date | 02 March 1993 |
Page 71
v.
CITY OF HUNTINGTON, WEST VIRGINIA, Defendant-Appellee.
Fourth Circuit.
Decided: June 10, 1993.
Amended by Order Filed July 12, 1993.
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Edward T. Perelmuter, Tax Div., U.S. Dept. of Justice, Washington, DC, argued (James A. Bruton, Acting Asst. Atty. Gen., Gary R. Allen, David English Carmack, Tax Div., U.S. Dept. of Justice, Washington, DC; Michael W. Carey, U.S. Atty., Charleston, WV, on brief), for plaintiff-appellant.
Frederick G. Staker, III, City Atty., City of Huntington, Huntington, WV, argued, for defendant-appellee.
Before HALL and LUTTIG, Circuit Judges, and HOWARD, United States District Judge for the Eastern District of North Carolina, sitting by designation.
K.K. HALL, Circuit Judge:
The United States appeals an order declaring that federal agencies that own property in the City of Huntington, West Virginia ("City") are liable for the payment of a municipal service fee imposed by the City. We hold that the service fee is a tax from which the United States is immune, and, accordingly, we reverse.
I.
West Virginia Code § 8-13-13 authorizes any city that "furnishes any essential or special municipal service, including, but not limited to, police and fire protection ... to impose upon the users of such service reasonable rates, fees and charges...." In 1985, the City enacted an ordinance that imposed a "fire service fee" against owners of residential and commercial buildings. A flood protection fee was added in 1987, and, in 1990, these two fees were combined into a single "municipal service fee." Infrastructure improvements were added in 1991 as another purpose for which the fees could be used. From its inception in 1985, the fee has been assessed on the basis of square footage of the buildings in the City. 1 Civil penalties are available for delinquent accounts.
The City assessed the fee against federal agencies owning property in Huntington, including the General Services Administration ("GSA") and the United States Postal Service ("USPS"). 2 These two agencies refused to pay the fee, and the City assessed penalties and instituted collection proceedings in state court. The United States then filed a complaint in federal court asking that the City be enjoined from assessing or trying to collect the tax against the GSA and USPS. 3 The
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federal agencies also requested that the court declare that they were immune from the fees.On cross-motions for summary judgment, the district court ruled that GSA and USPS must pay the fees, but that they were not liable for penalties or interest, 793 F.Supp. 1370. The United States appeals; the City does not cross-appeal the injunction against the collection of penalties and interest.
The general principle that states cannot tax the United States derives from Chief Justice Marshall's opinion in McCulloch v. Maryland, 17 U.S. (4 Wheat.) 316, 4 L.Ed. 579 (1819). Although the immunity of the federal government and its instrumentalities has been the source of often conflicting decisions, "[t]he one constant ... is simple enough to express: a State may not, consistent with the Supremacy Clause, U.S. Const., Art. VI, cl. 2, lay a tax 'directly upon the United States'.... [T]he Court has never questioned the propriety of absolute immunity from state taxation." United States v. New Mexico, 455 U.S. 720, 733, 102 S.Ct. 1373, 1382, 71 L.Ed.2d 580 (1982) (quoting Mayo v. United States, 319 U.S. 441, 447, 63 S.Ct. 1137, 1140, 87 L.Ed. 1504 (1943)). If the service fee is a tax, then immunity is clear.
Although the Supreme Court has never established a specific standard for determining when a particular assessment is a tax, the Court has consistently adhered to the general rule that what must be considered is "the real nature of the tax and its effect upon the federal right asserted." United States v. Allegheny County, 322 U.S. 174, 184, 64 S.Ct. 908, 914, 88 L.Ed. 1209 (1944) (quoting Carpenter v. Shaw, 280 U.S. 363, 367-68, 50 S.Ct. 121, 123, 74 L.Ed. 478 (1930)). The proper analysis to arrive at the real nature of the...
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City of Huntington v. Bacon, Nos. 23067
...found in W. Va. Const. Art. X, Page 748 [196 W.Va. 462] § 1. 3 The Bacons relied, inter alia, upon United States v. City of Huntington, 999 F.2d 71 (4th Cir.1993), cert. denied, 510 U.S. 1109, 114 S.Ct. 1048, 127 L.Ed.2d 371 (1994), which held the municipal service fee was a tax which an ag......
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Covell v. City of Seattle, No. 61178-5
...exemption would have been necessary, since the United Page 887 States must pay reasonable user fees. United States v. Huntington, 999 F.2d 71, 73 (4th Cir.1993), cert. denied, 510 U.S. 1109, 114 [905 P.2d 331] S.Ct. 1048, 127 L.Ed.2d 371 (1994). "[C]harges for services from city-owned utili......
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Leckie Smokeless Coal Co., In re, Nos. 96-1708
...cases, we must first determine whether Coal Act premiums are taxes. We hold that they are. In United States v. City of Huntington, W. Va., 999 F.2d 71 (4th Cir.1993), cert. denied, 510 U.S. 1109, 114 S.Ct. 1048, 127 L.Ed.2d 371 (1994), we ascertained whether a service fee imposed by a city ......
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Samis Land Co. v. City of Soap Lake, No. 68520-7.
...2 of the United States Constitution prevents them from collecting any taxes from them. See, e.g., United States v. City of Huntington, 999 F.2d 71, 74 (4th Cir.1993), cert denied, 510 U.S. 1109, 114 S.Ct. 1048, 127 L.Ed.2d 371 13. "All taxes shall be uniform upon the same class of property ......
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City of Huntington v. Bacon, s. 23067
...found in W. Va. Const. Art. X, Page 748 [196 W.Va. 462] § 1. 3 The Bacons relied, inter alia, upon United States v. City of Huntington, 999 F.2d 71 (4th Cir.1993), cert. denied, 510 U.S. 1109, 114 S.Ct. 1048, 127 L.Ed.2d 371 (1994), which held the municipal service fee was a tax which an ag......
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Covell v. City of Seattle, 61178-5
...exemption would have been necessary, since the United Page 887 States must pay reasonable user fees. United States v. Huntington, 999 F.2d 71, 73 (4th Cir.1993), cert. denied, 510 U.S. 1109, 114 [905 P.2d 331] S.Ct. 1048, 127 L.Ed.2d 371 (1994). "[C]harges for services from city-owned utili......
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Leckie Smokeless Coal Co., In re, s. 96-1708
...cases, we must first determine whether Coal Act premiums are taxes. We hold that they are. In United States v. City of Huntington, W. Va., 999 F.2d 71 (4th Cir.1993), cert. denied, 510 U.S. 1109, 114 S.Ct. 1048, 127 L.Ed.2d 371 (1994), we ascertained whether a service fee imposed by a city ......
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Samis Land Co. v. City of Soap Lake, 68520-7.
...2 of the United States Constitution prevents them from collecting any taxes from them. See, e.g., United States v. City of Huntington, 999 F.2d 71, 74 (4th Cir.1993), cert denied, 510 U.S. 1109, 114 S.Ct. 1048, 127 L.Ed.2d 371 (1994). 13. "All taxes shall be uniform upon the same class of p......