American Trucking Associations, Inc. v. Michigan Public Service Commission

545 U.S. 429, 125 S. Ct. 2419, 162 L. Ed. 2d 407, 18 Fla. L. Weekly Fed. S 433, 2005 U.S. LEXIS 4843, 73 U.S.L.W. 4532
Supreme Court of the United States·Decided June 20, 2005·No. 03-1230·Published·Cited by 116 cases

Opinions

[431] Justice Breyer

delivered, the opinion of the Court.

In this case, we consider whether a flat $100 fee that Michigan charges trucks engaging in intrastate commercial hauling violates the dormant Commerce Clause. We hold that it does not.

I

A subsection of Michigan’s Motor Carrier Act imposes upon each motor carrier “for the administration of this act, an annual fee of $100.00 for each self-propelled motor vehicle operated by or on behalf of the motor carrier.” Mich. Comp. Laws Ann. §478.2(1) (West 2002). The provision assesses the fee upon, and only upon, vehicles that engage in intrastate commercial operations — that is, on trucks that undertake point-to-point hauls between Michigan cities. See Westlake Transp., Inc. v. Michigan Pub. Serv. Comm’n, 255 Mich. App. 589, 592-594, 662 N. W. 2d 784, 789 (2003). Petitioners, USF Holland, Inc., a trucking company with trucks that engage in both interstate and intrastate hauling, and the American Trucking Associations, Inc. (ATA), asked the Michigan courts to invalidate the provision. Both petition[432] ers told those courts that trucks that carry both interstate and intrastate loads engage in intrastate business less than trucks that confine their operations to the Great Lakes State. Hence, because Michigan’s fee is flat, it discriminates against interstate carriers and imposes an unconstitutional burden upon interstate trade.

The Michigan Court of Claims rejected the carriers’ claim for three reasons. First, the $100 fee “is regulatory and intended” for the Motor Carrier Act’s administration, which includes “regulation of vehicular size and weight, insurance requirements and safety standards.” App. to Pet. for Cert. 44a. Such a fee “is not amenable to a fee structure based on apportionment by usage rates.” Ibid. Second, the fee reflects a “legitimate expression of the [Sjtate’s concern that the welfare of its citizens be protected,” and hence an appropriate exercise of the State’s police power. Ibid. Third, the fee does not implicate the Commerce Clause because it falls only on intrastate, not interstate, commerce. Id., at 45a.

The Michigan Court of Appeals affirmed. It did not agree that the intrastate nature of §478.2(1) sheltered the fee from Commerce Clause scrutiny. 255 Mich. App., at 617-619, 662 N. W. 2d, at 802. Nonetheless, the court rejected the truckers’ claim because the statute “regulates evenhandedly,” id., at 621, 662 N. W. 2d, at 804, and because the record lacked any “evidence that any trucking firm’s route choices [were] affected by the imposition of the fee,” id., at 621, 662 N. W. 2d, at 803-804. Rather, the record indicated that any “effect . . . on interstate commerce is incidental,” rendering the truckers’ claim of discrimination “a matter of pure speculation.” Ibid.

The Michigan Supreme Court denied petitioners leave to appeal. Westlake Transp., Inc. v. Michigan Pub. Serv. Comm’n, 469 Mich. 976, 673 N. W. 2d 752 (2003). We granted their petition for certiorari and consolidated the case with Mid-Con Freight Systems, Inc. v. Michigan Pub. Serv. Comm’n, post, p. 440, a case in which interstate truckers [433] sought review of a separate state motor carrier fee. We now affirm the Michigan court’s judgment sustaining §478.2(1).

II

Our Constitution “was framed upon the theory that the peoples of the several states must sink or swim together.” Baldwin v. G. A. F. Seelig, Inc., 294 U. S. 511, 523 (1935). Thus, this Court has consistently held that the Constitution’s express grant to Congress of the power to “regulate Commerce . . . among the several States,” Art. I, § 8, cl. 3, contains “a further, negative command, known as the dormant Commerce Clause,” Oklahoma Tax Common v. Jefferson Lines, Inc., 514 U. S. 175, 179 (1995), that “create[s] an area of trade free from interference by the States,” Boston Stock Exchange v. State Tax Comm’n, 429 U. S. 318, 328 (1977) (internal quotation marks omitted). This negative command prevents a State from “jeopardizing the welfare of the Nation as a whole” by “placing] burdens on the flow of commerce across its borders that commerce wholly within those borders would not bear.” Jefferson Lines, supra, at 180.

Thus, we have found unconstitutional state regulations that unjustifiably discriminate on their face against out-of-state entities, see Philadelphia v. New Jersey, 437 U. S. 617 (1978), or that impose burdens on interstate trade that are “clearly excessive in relation to the putative local benefits,” Pike v. Bruce Church, Inc., 397 U. S. 137, 142 (1970). We have held that States may not impose taxes that facially discriminate against interstate business and offer commercial advantage to local enterprises, see, e. g., Oregon Waste Systems, Inc. v. Department of Environmental Quality of Ore., 511 U. S. 93, 99-100 (1994), that improperly apportion state assessments on transactions with out-of-state components, Central Greyhound Lines, Inc. v. Mealey, 334 U. S. 653 (1948), or that have the “inevitable effect [of] threatening] the free movement of commerce by placing a financial barrier around the State,” American Trucking Assns., Inc. v. Scheiner, 483 U. S. 266, 284 (1987).

[434] Applying these principles and precedents, we find nothing in §478.2(1) that offends the Commerce Clause. To begin with, Michigan imposes the flat $100 fee only upon intrastate transactions — that is, upon activities taking place exclusively within the State’s borders. Section 478.2(1) does not facially discriminate against interstate or out-of-state activities or enterprises. The statute applies evenhandedly to all carriers that make domestic journeys. It does not reflect an effort to tax activity that takes place, in whole or in part, outside the State. Nothing in our case law suggests that such a neutral, locally focused fee or tax is inconsistent with the dormant Commerce Clause.

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American Trucking Associations, Inc. v. Michigan Public Service Commission, 545 U.S. 429, 125 S. Ct. 2419, 162 L. Ed. 2d 407, 18 Fla. L. Weekly Fed. S 433, 2005 U.S. LEXIS 4843, 73 U.S.L.W. 4532 (2005).

545 U.S. 429 (American Trucking Associations, Inc. v. Michigan Public Service Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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