Robey v. Broersma

26 A.2d 820, 181 Md. 325, 1942 Md. LEXIS 238
CourtCourt of Appeals of Maryland
DecidedJune 17, 1942
Docket[No. 41, April Term, 1942 — On Reargument, No. 35, October Term, 1942.]
StatusPublished
Cited by18 cases

This text of 26 A.2d 820 (Robey v. Broersma) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robey v. Broersma, 26 A.2d 820, 181 Md. 325, 1942 Md. LEXIS 238 (Md. 1942).

Opinions

The General Assembly of Maryland, at the session of 1941, passed an Act (Chapter 209) to add a new section, to be known as Section 73A, to the License Article, 56 of the Maryland Code of Public General Laws, 1939 Edition. The material provisions of the Act with which we now are concerned are:

"73A. Each person, firm or corporation selling or offering for sale through coin-operated vending machines any articles or goods or merchandise, except cigarettes, for the sale of which a traders' license is required, shall first obtain a license therefor and shall pay an annual license fee for such vending machines as follows: *Page 328

  "For each machine charging from 2¢ to 5¢ for
    merchandise ............................. $1.00

"For each machine charging more than 5¢ for merchandise ............................. $2.00

"Where the same machine vends more than one type or brand of article, the basis for the fee shall be determined by adding the number of cents required to purchase each type or brand of article sold. The clerk issuing the license shall supply the licensee with a metal tag or stamp to be applied to such vending machines in accordance with regulations of the State Comptroller. All licenses shall expire on the 30th day of April each year."

The General Assembly declared it to be an emergency Act, to take effect on May 1, 1941.

The appellees are merchants using automatic coin machines to distribute to customers nuts and various flavors of candy bars and chewing gum. They filed a bill of complaint in the Circuit Court of Baltimore City seeking to enjoin the appellants, who are the Clerk of the Court of Common Pleas, the State Comptroller and the Chief Inspector of State Licenses, from enforcing the provisions of the Act, which is designated as Chapter 209 of the Acts of 1941.

In their bill, the appellees assert that the said Act is invalid for several reasons. First, it is charged that the Act creates illegal discrimination between "traders" selling similar merchandise by imposing license fees based upon the method of selling, which is arbitrary and unreasonable, and therefore is in violation of Section 1 of the Fourteenth Amendment to the Federal Constitution; and also in conflict with Article XV of the Maryland Bill of Rights. Second, that the Acts creates illegal discrimination between merchants using coin vending machines by imposing different requirements on machines which carry one type of merchandise, but of different brands, or more than one type of the same brand; and because the Act exempts from the license fee certain types of machines. The third objection to the Act is *Page 329 that it is invalid because it was not impressed with the Great Seal of Maryland, and presented to the Governor for his approval within the time required by law.

A demurrer to the bill of complaint was filed, which was overruled. Answer, and a stipulation of facts, were filed, and the cause submitted upon the bill, answer and stipulation of facts. A decree was passed granting the relief sought, and declaring the Act not legislative discrimination in violation of the Federal Amendment, or of the Maryland Declaration of Rights; but void because it was not signed by the Governor before the time named in the Act for it to go into effect on May 1, 1941. From that decree this appeal was taken.

In considering the appellees' first charge, that of discrimination, it must be observed that what the Act actually does, is to classify automatic vending machines and place them in three classes, or groups, for the purpose of exacting a license fee from all merchants using any of the machines placed in the second and third classes.

In the first class are placed all machines offering but one choice of article, and requiring 1 cent to operate. Machines in that class are exempt from a license fee. In the second class are placed all machines offering more than one choice of article, and requiring 2 to 5 cents to operate. A license fee of $1 for such machines is required. The third class is composed of all machines requiring more than 5 cents to operate, and a license fee of $2 is exacted. Thus, it will be seen that, as the machines are classified, the license fee depends entirely upon the choice of machine each merchant elects to use.

In order to support the charge that legislative classification is illegal discrimination, it must appear that the classification is arbitrary, or capricious, otherwise courts will not interfere, because that is a matter of legislative discretion. Every presumption must be made in support of the theory that the legislative body has properly and validly exercised its powers.Brown v. State, 177 Md. 321, 330, 9 A.2d 209, and cases therein cited. *Page 330

By this Act, the classification, and the license fee, is imposed uniformly upon all merchants according to the type of machines each elects to use. There is no discrimination between machines of the same class. That system of fixing license fees has been held not to violate the Fourteenth Federal Amendment or the Fifteenth Article of the Maryland Bill of Rights. Brown v.State, supra; Read Drug and Chemical Co. v. Claypoole,165 Md. 250, 166 A. 742; State Board v. Jackson, 283 U.S. 527, 51 S.Ct. 540, 75 L.Ed. 1248, 73 A.L.R. 1464, 75 A.L.R. 1536; MagnanoCo. v. Hamilton, 292 U.S. 40, 54 S.Ct. 599, 78 L.Ed. 1109;Carmichael v. Southern Coal and Coke Co., 301 U.S. 495, 57 S.Ct. 868, 81 L.Ed. 1245, 109 A.L.R. 1327. In the Jackson case,supra [283 U.S. 527, 75 L.Ed. 1248], it was held: "The power of taxation is fundamental to the very existence of the government of the States. The restriction that it shall not be so exercised as to deny to any the equal protection of the laws does not compel the adoption of an iron rule of equal taxation, nor prevent variety or differences in taxation, or discretion in the selection of subjects, or the classification for taxation of properties, businesses, trades, callings or occupations. * * * The fact that a statute discriminates in favor of a certain class does not make it arbitrary, if the discrimination is founded upon a reasonable distinction. * * * As was said in Brown-Forman Co.v. Kentucky, supra, at page 573 (217 U.S. 563, 573, 30 S.Ct. 578, 580, 54 L.Ed. 883): "A very wide discretion must be conceded to the legislative power of the State in the classification of trades, callings, businesses or occupations which may be subjected to special forms of regulation or taxation through an excise or license tax. If the selection or classification is neither capricious nor arbitrary, and rests upon some reasonable consideration of difference or policy, there is no denial of the equal protection of the law. It is not the function of this court in cases like the present to consider the propriety or justness of the tax, to seek for the motives, or to criticize the

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Bluebook (online)
26 A.2d 820, 181 Md. 325, 1942 Md. LEXIS 238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robey-v-broersma-md-1942.