STATE TAX COMMISSION OF MISSISSIPPI ET AL.
v.
INTERSTATE NATURAL GAS CO., INC.
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Interstate Natural Gas Company challenged Mississippi's Privilege Tax Law as applied to its natural gas pipeline operations that transported gas from Louisiana through Mississippi and back to Louisiana, with only minimal sales within Mississippi. The Supreme Court affirmed that Mississippi could not tax the company's activities, holding that the gas transportation and delivery operations constituted interstate commerce incident to the flow of gas between Louisiana distribution points, and thus were not subject to state taxation. The Court established that even incidental in-state sales activities directly connected to the interstate transportation function could not be separately taxed by the state.
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Mr. Justice Holmes delivered the opinion of the Court.
.This is an appeal from a decree of three Judges sitting according to statute in the District Court, by which the íax Commission of the State of Mississippi is permanently enjoined from enforcing a Privilege Tax Law of that State, being c. 88 of the laws of 1930, against the Interstate Natural Gas Company, the plaintiff in this suit.
The facts are agreed. The plaintiff has a trunk line of pipe extending from gas fields in Louisiana through Mississippi and back to Louisiana; 72.42 miles having a diameter of 22 inches, 8.11 miles having a diameter of 12 inches and 4.99 miles a diameter of 10 inches. It sells daily to distributors in Louisiana about 70,000,000 cubic feet of natural gas in summer and'about 75,000,000 feet in winter. In Mississippi it sells as will be explained from 204,000 to 520,000 feet according to the season. The gas flows continuously from the gas fields in Louisiana and obviously, for much the greater part at least, in interstate commerce. But the appellants rely upon business done under two' similar contracts made in New York to show that there was intrastate commerce in Mississippi that may be taxed without burdening the main activity that the State cannot touch. Ozark Pipe Line Corp. v. Monier, 266 U. S. 555, 563. East Ohio Gas Co. v. Tax Commission, 283 U. S. 465, 470. Distributing companies tap the plaintiff’s pipes near Natchez and the town of Woodville. The gas withdrawn by the distributors is measured by a thermometer and a metér furnished by the plaintiff which is the only way in which it can be measured. The pressure of the gas is reduced by the plaintiff before it passes into the purchaser’s hands. The work done by the. plaintiff is done upon the flowing gas to help the delivery and seems to us plainly to be incident to the interstate commerce between Louisiana and Mississippi. The plaintiff simply transports the gas and delivers it yyholésale not otherwise worked over than to make it ready for delivery to the independent parties that dispose of it by retail. Missouri v. Kansas Gas Co., 265 U. S. 298. Public Utilities Comm. v. Landon, 249 U. S. 236, 245. Ozark Pipe Line Corp. v. Monier, 266 U. S. 555.
Decree affirmed.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (17 total)
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GAY v. United Gas Pipe Line Co., 159 Fla. 659 (Fla. 1947)…on was reduced for the first time and the gas metered. The decree of the lower court is affirmed on authority of Illinois Gas Co. v. Public Service Co., 314 U.S. 498, 62 S. Ct. 384, 86 L. ed. 371; State Tax Commission v. Interstate Natural Gas Co., 284 U.S. 41, 52 S. Ct. 62, 76 L. ed. 156; Peoples Gas Co. v. Public Service Commission, 270 U.S. 550, 46 S. Ct., 371, 70 L. Ed. 726; Ozark Pipe Line Corp. v. Monier, 266 U.S. 555, 45 S. Ct. 184, 69 L. ed. 439; Missouri v. Kansas Gas Co., 265 U. S. 298, 44 S. Ct…
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United GAS Pipe Line Co. v. LEE, 154 Fla. 235 (Fla. 1944)…?” Appellee’s contention with respect to appellant’s questions, has already been pointed out. I am duly mindful of the enunciations of the Supreme Court of the United States in the cases of State Tax Commission v. Interstate Natural Gas Co., Inc., 284 U. S. 41, 52 S. Ct. 62, 76 L. Ed. 156, and similar cases. See Illinois Gas Co. v. Central Illinois Public Service Co., 314 U.S. 498, 62 S. Ct. 384; 86 L. Ed. 371. The conclusion reached in those cases was that the gas was in continuous interstate transporta…1 / 2
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Commonwealth Edison Co. v. Montana, 453 U.S. 609 (U.S. 1981)…n only be described as opaque. Compare, for example, East Ohio Gas Co. v. Tax Comm’n, 283 U. S. 465 (1931) (movement of gas into local supply lines at reduced pressure constitutes local business), with State Tax Comm’n v. Interstate Natural Gas Co., 284 U. S. 41 (1931) (movement of gas into local supply lines constitutes part of interstate business). This is not to suggest, however, that Heisler and its progeny were wrongly decided. Nor do we share appellants’ apparent view that the Commerce Clause inject…
Previewing 3 of 17 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- State of Mo. on the Relation of Barrett v. Kan. Natural Gas Co., 265 U.S. 298 (U.S. 1924)
- Pub. Utils. Comm'n for the State of Kan. v. Landon, 249 U.S. 236 (U.S. 1919)
- E. Ohio Gas Co. v. Tax Comm'n of Ohio, 283 U.S. 465 (U.S. 1931)
- Ozark Pipe Line Corp. v. Monier, 266 U.S. 555 (U.S. 1925)