Rosewell v. LaSalle National Bank

450 U.S. 503, 101 S. Ct. 1221, 67 L. Ed. 2d 464, 1981 U.S. LEXIS 8

Opinions

Justice Brennan

delivered the opinion of the Court.

The Tax Injunction Act of 1937 provides that “[t]he district courts shall not enjoin, suspend or restrain the assessment, levy or collection of any tax under State law where a plain, speedy and efficient remedy may be had in the courts of such State.” 28 U. S. C. § 1341. The question we must decide in this case is whether an Illinois remedy which requires property owners contesting their property taxes to pay under protest and if successful obtain a refund without interest in two years is “a plain, speedy and efficient remedy” within the meaning of the Act.¹

I

LaSalle National Bank is trustee of a land trust for Patricia Cook,² the beneficial owner of property improved with a 22-unit apartment building in' the all-black low-income community of East Chicago Heights, Ill., located in Cook County.³ Respondent alleged that, as of January 1, 1977, her property had a fair market value of $46,000. In accordance with a Cook County ordinance, her property should have been assessed for property tax purposes at 33% of fair market value — $15,180.⁴ Instead, for the 1977 tax year, the County Assessor assessed the property at $52,150. As a result, respondent's property tax liability was $6,106 instead of $1,775, an overcharge of $4,331.

Respondent also claimed that the County Assessor “knowingly as official policy or governmental custom maintained, adopted or promulgated policy statements, regulations, decisions and systems of assessment which have produced egregious disparities in assessments throughout the County." Plaintiff’s Complaint ¶ 11, App. 7. In particular, she cited a study of the Illinois Department of Local Government Affairs showing that, for 1975, property in the same class as respondent's was assessed as low as 3% and as high as 973% of fair market value. She furthermore alleged that such disparities in assessments were “far greater in number and size in older, inner city and county areas, owned, inhabited or used to a larger extent by minorities and poorer people.” Ibid. Finally, she contended that the Assessor knew that she had previously challenged the 1974, 1975, and 1976 assessments of her property.⁵

Respondent first exhausted her administrative remedy by appealing unsuccessfully for a correction of her 1977 assessment before the Cook County Board of Appeals. Ill. Rev. Stat., ch. 120, §§ 594 (1), 596, 597, 598, 599 (1977).⁶ Her only remaining state remedy was to pay the contested tax under protest, and then to file an objection to the Cook County Collector’s Application for Judgment before the Circuit Court of Cook County — in effect a reverse suit for refund.⁷ §§ 675, 716. Although Illinois’ statutory refund procedure could theoretically provide a final resolution of the dispute within one year of payment of the tax under protest,⁸ respondent alleged that the customary delay from the time of payment until the receipt of refund upon successful protest is two years.⁹ The tax refund is not accompanied by a payment of interest.¹⁰ Clarendon Associates v. Korzen, 56 Ill. 2d 101, 109, 306 N. E. 2d 299, 303 (1973); Lakefront Realty Corp. v. Lorenz, 19 Ill. 2d 415, 422-423, 167 N. E. 2d 236, 240-241 (1960).

Respondent refused to pay her 1977 property taxes and instead brought this 42 U. S. C. § 1983 action in the United States District Court for the Northern District of Illinois, seeking preliminary and permanent injunctive relief to prevent petitioner Rosewell¹¹ from publishing an advertisement of notice and the intended date of Application for Judgment, from applying for judgment and order of sale against her property, and from selling it. Respondent contended that, by requiring payment of taxes times the lawful amount, petitioners deprived her of equal protection and due process secured by the Fourteenth Amendment of the United States Constitution, and violated state constitutional and statutory rights as well. Respondent further alleged that she had no plain, speedy, and efficient remedy in the Illinois courts.

Petitioners moved to dismiss, claiming that actions challenging state tax assessments are not cognizable under 42 and 28 U. S. C. § 1343,¹² and that Illinois’ statutory refund procedure is a plain, speedy, and efficient remedy even though it fails to pay interest. Defendants’ Motion to Dismiss, App. 11.

The District Court denied respondent’s motion for a preliminary injunction and dismissed the complaint for want of jurisdiction under 28 U. S. C. § 1341.¹³ App. to Pet. for Cert. 20a-21a. However, the court enjoined petitioner Rose well from proceeding to judgment and order of sale against respondent’s property pending appeal to the United States Court of Appeals for the Seventh Circuit. Fed. Rule Civ. Proc. 62 (c). The Court of Appeals reversed the District Court, holding that the Tax Injunction Act did not bar federal district court jurisdiction because Illinois’ procedure of no-interest refunds after two years was not “a plain, speedy and efficient remedy.” 604 F. 2d 530, 536-537 (1979).¹⁴ A petition for rehearing and suggestion for rehearing en banc was denied. Id., at 530. We granted certiorari, 445 U. S. 925 (1980), and now reverse.

II

At the outset, it must be recognized that the issue we decide is one of statutory construction. Our task is to determine whether the Illinois refund procedure constitutes “a plain, speedy and efficient remedy ... in the courts of such State” within the meaning of the Tax Injunction Act, 28 U. S. C. § 1341, thereby barring federal jurisdiction to grant injunctive relief. Our review of the plain language of the Act, its legislative history, and its underlying purpose persuades us that the Court of Appeals erred in holding that the Illinois remedy is not “a plain, speedy and efficient remedy.”

A

The starting point of our inquiry is the plain language of the statute itself. Reiter v. Sonotone Corp., 442 U. S. 330, 337 (1979); 62 Cases of Jam v. United States, 340 U. S. 593, 596 (1951). See ERA v. National Crushed Stone Assn., 449 U. S. 64, 73 (1980). The Tax Injunction Act generally prohibits federal district courts from enjoining state tax administration except in instances where the state-court remedy is not “plain, speedy and efficient.” On its face, the “plain, speedy and efficient remedy” exception appears to require a state-court remedy that meets certain minimal procedural criteria. The Court has only occasionally sought to define the meaning of the exception since passage of the Act in 1937. When it has done so, however, the Court has emphasized a procedural interpretation in defining both the entire phrase and its individual word components.

Discussing the general meaning of the phrase, the Court, in Tully v. Griffin, Inc., 429 U. S. 68, 74 (1976), described its “basic inquiry” as “whether under New York law there is a 'plain, speedy and efficient’ way for [the taxpayer] to press its constitutional claims while preserving the right to challenge the amount of tax due.” More directly, in Great Lakes Dredge & Dock Co. v. Huffman, 319 U. S. 293, 300-301 (1943), the Court stated:

“[I]t is the court’s duty to withhold such relief when, as in the present case, it appears that the state legislature has provided that on payment of any challenged tax to the appropriate state officer, the taxpayer may maintain a suit to recover it back. In such a suit he may assert his federal rights and secure a review of them by this Court. This affords an adequate remedy to the taxpayer, and at the same time leaves undisturbed the state’s administration of its taxes.” (Emphasis added.)¹⁵

See Hillsborough v. Cromwell, 326 U. S. 620, 625 (1946) (issue is “whether the State affords full protection to the federal rights”).

What little can be gleaned from the legislative history of the Act on the phrase “plain, speedy and efficient remedy” lends further support to a procedural interpretation. Senator Bone, the Act’s primary sponsor, referred to the “plain, speedy and efficient remedy” provision and then stated: “Thus a full hearing and judicial determination of the controversy is assured.” 81 Cong. Rec. 1416 (1937). The Senate Report accompanying the Act mirrors Senator Bone’s understanding, adding that “[a]n appeal to the Supreme Court of the United State is available as in other cases.” S. Rep. No. 1035, 75th Cong., 1st Sess., 2 (1937).

The phrase “a plain, speedy and efficient remedy” in the Tax Injunction Act was “modeled” after verbatim language in the Johnson Act of 1934,¹⁶ an Act prohibiting federal-court interference with orders issued by state administrative agencies to public utilities. As Senator Bone made clear, “[m]ost of the arguments which were used in support of the Johnson Act . . . apply in like manner” to the Tax Injunction Act. 81 Cong. Rec. 1416 (1937). Our examination of the Johnson Act and its legislative history reveals the same procedural emphasis as found in the Tax Injunction Act and its legislative history. As gloss on the words “a plain, speedy and efficient remedy,” the Senate Report on the Johnson Act spoke of state laws that provided for an appeal from the determination of the state agency by any dissatisfied party. S. Rep. No. 701, 72d Cong., 1st Sess., 1-2 (1932). The Senate Report continued: “This appeal is taken to the courts of the State, thus giving to both sides of any controversy which may arise a full hearing and judicial determination of the controversy.” Id., at 2 (emphasis added).

There is no doubt that the Illinois state-court refund procedure provides the taxpayer with a “full hearing and judicial determination” at which she may ratee any and all constitutional objections to the tax. LaSalle National Bank v. County of Cook, 57 Ill. 2d 318, 324, 312 N. E. 2d 252, 255-256 (1974). Appeal to the higher Illinois courts is authorized, Ill. Rev. Stat., ch. 120, § 675 (1977), and review is ultimately available in this Court, 28 U. S. C. § 1257. Respondent does not allege any procedural defect in the Illinois remedy, other than delay,¹⁷ that would preclude preservation and consideration of her federal rights, since she is free to raise her equal protection and due process federal constitutional objections during the Application for Judgment proceedings before the Circuit Court of Cook County.¹⁸ Rather, respondent's argument — that Illinois’ failure to pay interest on the tax refund makes the remedy not “plain, speedy and efficient” — appears to address a more substantive concern. Whether she has any “federal right” to receive interest — a right she has not asserted and on which we express no view — it would appear that she could assert this right in the state-court proceeding. The procedural mechanism for correction of her tax bill remains the same, however, whether interest is paid or not.¹⁹

B

A procedural interpretation of the phrase “a plain, speedy and efficient remedy,” and the procedural sufficiency of Illinois’ remedy, are supported further by analysis of the phrase’s individual words. According to the 1934 edition of Webster’s New International Dictionary, plain means “clear” or “manifest,” speedy means “quick,” efficient means “characterized by effective activity,” and a remedy is the “legal means to recover a right ... or obtain redress for ... a wrong.” Webster’s New International Dictionary of the English Language 819, 1878, 2106, 2418 (2d ed. 1934).²⁰

While the Court has never addressed the meaning of the word “speedy,” it has interpreted the words “plain” and “efficient.” Thus, the Court suggested that “uncertainty concerning a State’s remedy may make it less than ‘plain’ under 28 U. S. C. § 1341.” Tully v. Griffin, Inc., 429 U. S., at 76. Earlier cases, without making a direct connection to the word “plain,” have held that “uncertainty” surrounding a state-court remedy lifts the bar to federal-court jurisdiction. Hillsborough v. Cromwell, 326 U. S., at 625-626.²¹ Respondent has made no argument that the Illinois refund procedure is uncertain or otherwise unclear. There is no question that under the Illinois procedure, the court will hear and decide any federal claim. Paying interest or eliminating delay would not make the remedy any more “plain.”

This Court’s interpretation of the word “efficient” has also stressed procedural elements. In Tully, the Court commented that “a State’s remedy does not become ‘inefficient,’ merely because a taxpayer must travel across a state line in order to resist or challenge the taxes sought to be imposed.” 429 U. S., at 73. In addition, without explicitly mentioning the word “efficient,” we have permitted federal-court jurisdiction when the taxpayer’s state-court remedy would require a multiplicity of suits, Georgia Railroad & Banking Co. v. Redwine, 342 U. S. 299, 303 (1952) (where remedy “would require the filing of over three hundred separate claims in fourteen different counties to protect the single federal claim asserted by [the taxpayer]”), or when the remedy would allow a challenge against only one of many taxing authorities, id., at 301, 303 (where suit-for-refund remedy-applied only to state taxes, yet taxpayer railroad also wanted to challenge on the same basis taxes paid to counties, school districts, and municipalities). Because the Illinois remedy imposes no unusual hardship on respondent requiring ineffectual activity or an unnecessary expenditure of time or energy, we cannot say that it is not “efficient.” ²²

This Court has never expressly discussed the meaning of the word “speedy,” an issue that is squarely presented in this case. We must decide whether Illinois’ refund after two years qualifies as a “speedy” remedy. “Speedy” is perforce a relative concept, and we must assess the 2-year delay against the usual time for similar litigation. It surely is no secret that state and federal trial courts have been beset by docket congestion and delay for many years.²³ Whether this is a necessary, let alone a reasonable, condition of 20th-century litigation is beside the point: The fact of the matter is that legal conflicts are not resolved as quickly as we would like.

In 1976, the median number of days from filing a complaint to disposition of a civil trial matter in 13 urban trial courts ranged from 357 to 980. National Center for State Courts, Justice Delayed 10-11 (1978).²⁴ In 7 of the 13, over 30% of the civil cases took more than two years from start to finish. Id., at 13. The Cook County Circuit Court had a similar record: from 1974 to 1975, the average time from date of filing to verdict was about 40 months. U. S. Department of Justice, State Court Caseload Statistics: The State of the Art 7 (1978). Federal district courts have not fared much better. As of 1980, the median time interval from filing to disposition for civil cases going to trial was 20 months; 10% of those took more than 46 months. Annual Report of the Director of the Administrative Office of the U. S. Courts 81, A-30 (1980). For the United States District Court for the Northern District of Illinois, the District in which respondent brought this suit, the median time interval was 23 months, with 10% of all cases over 53 months. Id., at A-31.²⁵

Cast in this light, respondent’s 2-year wait, regrettably, is not unusual. Nowhere in the Tax Injunction Act did Congress suggest that the remedy must be the speediest.²⁶ The payment of interest might make the wait more tolerable, but it would not affect the amount of time necessary to adjudicate respondent’s federal claims. Limiting ourselves to the circumstances of the instant case, we cannot say that respondent’s 2-year delay falls outside the boundary of a “speedy” remedy.²⁷

c

The overall purpose of the Tax Injunction Act is consistent with the view that the “plain, speedy and efficient remedy” exception to the Act’s prohibition was only designed to require that the state remedy satisfy certain procedural criteria, and that Illinois’ refund procedure meets such criteria. The statute “has its roots in equity practice, in principles of federalism, and in recognition of the imperative need of a State to administer its own fiscal operations.” Tully v. Griffin, Inc., 429 U. S., at 73.²⁸ This last consideration was the principal motivating force behind the Act: this legislation was first and foremost a vehicle to limit drastically federal district court jurisdiction to interfere with so important a local concern as the collection of taxes. 81 Cong. Rec. 1415 (1937) (remarks of Sen. Bone); Great Lakes Dredge & Dock Co. v. Huffman, 319 U. S., at 301 (Act “predicated upon the desirability of freeing, from interference by the federal courts, state procedures which authorize litigation challenging a tax after the tax has been paid”).²⁹

When it passed the Act, Congress knew that state tax systems commonly provided for payment of taxes under protest with subsequent refund as their exclusive remedy. The Senate Report to the Act noted:

“It is the common practice for statutes of the various States to forbid actions in State courts to enjoin the collection of State and county taxes unless the tax law is invalid or the property is exempt from taxation, and these statutes generally provide that taxpayers may contest their taxes only in refund actions after payment under protest. This type of State legislation makes it possible for the States and their various agencies to survive while long-drawn-out tax litigation is in progress.” S. Rep. No. 1035, 75th Cong., 1st Sess., 1 (1937).

See H. R. Rep. No. 1503, 75th Cong., 1st Sess., 2 (1937). See also Matthews v. Rodgers, 284 U. S. 521, 526 (1932).

It is only common sense to presume that Congress was also aware that some of these same States did not pay interest on their refunds to taxpayers, following the then-familiar rule that interest in refund actions was recoverable only when expressly allowed by statute. 3 T. Cooley, Law of Taxation § 1308, pp. 2596-2597 (4th ed. 1924).³⁰ It would be wholly unreasonable, therefore, to construe a statute passed to limit federal-court interference in state tax matters to mean that Congress nevertheless wanted taxpayers from States not paying interest on refunds to have unimpaired access to the federal courts. If Congress had meant to carve out such an expansive exception, one would expect to find some mention of it. The statute’s broad prophylactic language is incompatible with such an interpretation.

Ill

For the most part, respondent rests her case on the persuasiveness of a syllogism: the Tax Injunction Act is coterminous with pre-1937 federal equity treatment of challenges to state taxes; federal equity practice at that time viewed a no-interest refund remedy as inadequate;³¹ therefore, it must follow that the Tax Injunction Act would view a no-interest refund remedy as inadequate, thereby authorizing federal jurisdiction. Brief for Respondent 21. This argument also forms part of the basis for the Court of Appeals’ decision. 604 F. 2d, at 533, n. 4. And even petitioners, Brief for Petitioners 40, suggest that the Tax Injunction Act is “a congressional confirmation of the Court’s prior federal equity practice in the area of state and local taxation.”³² We are unpersuaded. It is true that post-1937 Court cases have suggested that the Tax Injunction Act recognized and sanctioned pre-existing federal equity practice. See Moe v. Salish & Kootenai Tribes, 425 U. S. 463, 470 (1976); Hillsborough v. Cromwell, 326 U. S., at 622-623; Great Lakes Dredge & Dock Co. v. Huffman, 319 U. S., at 298-299. But these cases do no more than confirm that “the statute has its roots in equity practice,” Tully v. Griffin, Inc., 429 U. S., at 73, and that it was a longstanding rule of federal equity to keep out of state tax matters as long as a “plain, adequate and complete remedy” could be had at law. Hillsborough v. Cromwell, supra, at 622-623. Nothing in our decisions suggests that every wrinkle of federal equity practice was codified, intact, by Congress.³³

Indeed, Congress, among other things, legislated to solve an existing problem by cutting back federal equity jurisdiction. Senator Bone commented that the “existing practice of the Federal courts to entertain tax-injunction suits make[s] it possible for foreign corporations to withhold from a State and its governmental subdivisions taxes in such vast amounts and for such long periods as to disrupt State and county finances, and thus make it possible for such corporations to determine for themselves the amount of taxes they will pay.” 81 Cong. Rec. 1416 (1937) (emphasis added). See S. Rep. No. 1035, 75th Cong., 1st Sess., 2 (1937). He furthermore noted that “[p] revision is made that the bill is not to affect suits pending at the time of its enactment.” 81 Cong. Rec., at 1415. Thus, Congress plainly did not intend to permit the federal courts after passage of the Tax Injunction Act to entertain suits in all cases cognizable by them prior to the Act.³⁴

Furthermore, Congress did not equate § 1341’s “plain, speedy and efficient” with equity’s “plain, adequate and complete.” Ever since the early days of Congress, this “plain, adequate and complete”. standard of federal equity practice had been codified into statutory form. 1 Stat. 82.³⁵ And it was not until 1948, more than 10 years after passage of the Tax Injunction Act, that the “Suits in Equity” statute was repealed. 28 U. S. C. § 384 (1946 ed.) (repealed June 25, 1948). Against this background, we will not interpret the Tax Injunction Act as substantially redundant of § 384.

IV

Finally, we note that the reasons supporting federal noninterference are just as compelling today as they were in 1937. If federal injunctive relief were available,

“state tax administration might be thrown into disarray, and taxpayers might escape the ordinary procedural requirements imposed by state law. During the pendency of the federal suit the collection of revenue under the challenged law might be obstructed, with consequent damage to the State’s budget, and perhaps a shift to the State of the risk of taxpayer insolvency. Moreover, federal constitutional issues are likely to turn on questions of state tax law, which, like issues of state regulatory law, are more properly heard in the state courts.” Perez v. Ledesma, 401 U. S. 82, 128, n. 17 (1971) (Brennan, J., concurring in part and dissenting in part).

The compelling nature of these considerations is underscored by the dependency of state budgets on the receipt of local tax revenues. In 1978, States derived over 61% of their revenue from property, sales, income, and other taxes. Advisory Commission on Intergovernmental Relations, Significant Features of Fiscal Federalism 53, 56 (1980). For Illinois, the percentage was even higher — 67.4%. Ibid. The property tax is by far the most important source of tax revenue for cities and counties. For the year 1977-1978, almost 33% of all their income nationwide came from the local property tax; for Illinois’ local governments, the amount was greater — 39.2%. Id., at 78.

The experience of Cook County itself demonstrates how ominous would be the potential for havoc should federal injunctive relief be widely available. The county collected over $1.5 billion in real estate taxes for the tax year 1975. Ganz & Laswell, Review of Real Estate Assessments — Cook County (Chicago) vs. Remainder of Illinois, 11 John Marshall J. Prac. & Proc. 19, and n. 2 (1977). During the same year, the number of complaints filed with the Cook County Board of Appeals totaled 22,262. Id., at 31, n. 61. We may readily appreciate the difficulties encountered by the county should a substantial portion of its rightful tax revenue be tied up in injunction actions.³⁶ If each of these complaints alleged entitlement to a refund of around $5,000, as does respondent, over $113 million in revenues potentially could be encumbered in federal-court litigation. See also City of New York, Annual Report of the Tax Commission for Fiscal Year 1978-1979, p. 14 (1979) (41,449 applications for correction of taxes owed concerning 48,170 parcels of land, of which 40,793 applications concerning 47,512 parcels of land involved hearings).

Accordingly, we hold that Illinois' legal remedy that provides property owners paying property taxes under protest a refund without interest in two years is “a plain, speedy and efficient remedy” under the Tax Injunction Act.

Reversed.

1

This Court expressly did not decide whether omission to provide interest on a successful refund application rendered a state remedy not “plain, speedy and efficient,” in Department of Employment v. United States, 385 U. S. 355, 358 (1966).

2

Patricia Cook, the real party in interest, is the beneficial owner of Illinois Land Trust No. 44891, of which LaSalle National Bank serves as trustee. Although she was not a named party in this litigation, this opinion will nevertheless refer to her as the respondent.

3

The facts as stated in this opinion are drawn largely from respondent’s complaint. For purposes of our consideration, the allegations of the complaint are accepted as true. Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U. S. 172, 174-175 (1965).

4

Article IX, §4 (b), of the Illinois Constitution provides that, subject only to limitations prescribed by the State’s General Assembly, counties with populations of more than 200,000, which includes Cook County, may classify real property for purposes of taxation. The classification must be reasonable, and the assessments uniform within each class. Moreover, the level of assessment of the highest class canpot exceed 2% times the level of assessment of the lowest class in the county. Under authority of the Illinois Constitution, Art. IX, § 4, the Illinois General Assembly passed legislation requiring that any “such classification must be established by ordinance of the county board.” Ill. Rev. Stat., ch. 120, § 501a (1977).

Pursuant to this authority, the Cook County Board of Commissioners passed the following ordinance:

“Section 2. Real estate is divided into the following assessment classes:

“Class 1: Unimproved real estate.

“Class 2: Real estate used as a farm, or real estate used for residential purposes when improved with a house, an apartment building of not more than six living units, or residential condominium, a residential cooperative or a government-subsidized housing project if required by statute to be assessed in the lowest assessment category.

“Class 3: All improved real estate used for residential purposes which is not included in Class 2.

“Class 4: Real estate owned and used by a not-for-profit corporation in furtherance of the purposes set forth in its charter unless used for residential purposes. If such real estate is used for residential purposes it shall be classified in the appropriate residential class.

“Class 5: All real estate not included in any of the above four classes.

“Section 3. The Assessor shall assess, and the Board of Appeals shall review assessments on real estate in the various classes at the following percentages of market value:

“Class 1: — 22%

“Class 2: — 17%

“Class 3: — 33%

“Class 4: — 30%

“Class 5: — 40%”

Cook County, Ill., Real Property Assessment Classification Ordinance, §§ 2, 3 (originally enacted Dec. 17, 1973, as amended through June 6, 1977).

Respondent’s property qualified as Class 3 real estate.

5

Respondent had previously challenged her 1974, 1975, and 1976 property tax assessments, first by appealing to the Board of Appeals, and then by objecting in December 1975, November 1976, and December 1977 respectively to the Collector’s annual Applications for Judgment. The Circuit Court of Cook County, noting that the parties had agreed to a compromise and settlement at a pretrial conference, Ill. Rev. Stat., ch. 120, § 675a (1977), issued three separate judgments simultaneously on March 16, 1978, and ordered refunds to respondent on the erroneously collected portions of her protested tax payments, for $4,586.24, $3,656.29, and $3,937.66 respectively. Respondent had asked for refunds of $5,700, $4,750, and $5,452.41 for the three years.

6

To challenge a property tax assessment, a Cook County property owner must follow a specific statutory procedure. See generally Ganz & Laswell, Review of Real Estate Assessments — Cook County (Chicago) vs. Remainder of Illinois, 11 John Marshall J. Prac. & Proc. 19 (1977); Par-ham, Procedures For Obtaining Relief With Respect To Property Tax Assessments and Rates, 61 Ill. Bar J. 306 (1973). The taxpayer may file a written complaint with the County Assessor and is thereafter entitled to a hearing. Ill. Rev. Stat., ch. 120, §578 (1977). If no relief is obtained, the taxpayer may appeal to the Board of Appeals of Cook County for correction of the assessment. §§ 594 (1), 596, 597, 598, 599. The Board must forward one copy of the complaint to the County Assessor. § 598. Before seeking a legal remedy in state court, the taxpayer must exhaust the available administrative remedy before the Board of Appeals by filing a complaint. People ex rel. Korzen v. Fulton Market Cold Storage Co., 62 Ill. 2d 443, 446-447, 343 N. E. 2d 450, 452, cert. denied, 429 U. S. 833 (1976).

7

After exhaustion of the Board of Appeals’ administrative remedy, the taxpayer’s legal remedy requires payment of the tax under protest and a subsequent court challenge. Ill. Rev. Stat., ch. 120, §§ 675, 716 (1977). See Clarendon Associates v. Korzen, 56 Ill. 2d 101, 104, 306 N. E. 2d 299, 301 (1973). The tax is due in two installments. Ill. Rev. Stat., ch. 120, §§ 705, 705.1 (1977). The taxpayer must file a written protest along with the second installment payment setting forth grounds for the objection to the tax. § 675. Then, the Collector of -Cook County publishes an advertisement giving notice and stating the date of his intended application to the Circuit Court of Cook County for judgment fixing the correct amount of any tax paid under protest. § 706. Although the month of October is the apparent target date for applying for judgment, § 710, respondent contends that the Cook County Collector’s applications are not made until late November or early December, Brief for Respondent 14, n. 14. The Collector at the same time applies to the Circuit Court for judgment for sale of delinquent lands and lots whose owners have failed to pay their property tax bills. § 706.

Once the Collector’s Application for Judgment is filed with the Circuit Court, the taxpayer must file a written objection to the application within a period of time specified by the judge, stating his reasons for challenging the tax. The taxpayer may raise constitutional challenges to the assessment in his objection. LaSalle 'National Bank v. County of Cook, 57 Ill. 2d 318, 324, 312 N. E. 2d 252, 255-256 (1974). After the filing of the objection, the court must hold a settlement conference between the two sides within 90 days. Ill. Rev. Stat., ch. 120, § 675a (1977). If no settlement is reached, the court must upon demand of either party set the matter for hearing within 90 days of the conference, and decide the case. §§ 675a, 716. Finally, the court enters judgment and orders a refund for any or all of the tax erroneously paid by the taxpayer. §§ 675, 716. The dissatisfied taxpayer may appeal any such judgment to the higher courts of Illinois. § 675.

Illinois courts grant equitable relief by way of injunction against collection of property taxes only when the tax is unauthorized by law or when the tax is levied on exempt properties, LaSalle National Bank v. County of Cook, supra, at 323, 312 N. E. 2d, at 255, on the basis that the state statutory refund procedure is an adequate legal remedy. Ibid. It has been suggested, however, that in certain cases of fraudulently excessive assessments, the statutory remedy will be found inadequate and an equitable remedy will lie. See Clarendon Associates v. Korzen, supra, at 108, 306 N. E. 2d, at 303. Accord, Chicago Sheraton Corp. v. Zaban, 71 Ill. 2d 85, 92-93, 373 N. E. 2d 1318, 1322, appeal dism’d, 439 U. S. 998 (1978); LaSalle National Bank v. County of Cook, supra, at 323, 312 N. E. 2d, at 255; 28 East Jackson Enterprises, Inc. v. Cullerton, 523 F. 2d 439, 441-442 (CA7 1975), cert. denied, 423 U. S. 1073 (1976). Neither petitioners nor respondent suggests that respondent could have obtained equitable relief.

8

For instance, respondent’s 1976 tax protest was resolved within one year from the date of payment. Plaintiff’s Complaint ¶ 14, App. 9.

9

For purposes of their motion to dismiss in Federal District Court, petitioners agreed that the delay was two years. Tr. of Oral Arg. 9.

10

Respondent claimed that, based on an 8% average prime rate for the 3-year period during which she paid taxes under protest, she lost approximately $2,000 of potential interest on the use of her money. Plaintiff’s Complaint '¶ 14, App. 8-9.

11

Respondent sued Edward J. Rosewell, the Treasurer of Cook County, and Thomas M. Tully, the County Assessor.

12

Petitioners likewise urge here that the District Court lacked jurisdiction under 28 U. S. C. ■§ 1343 (3). Since the “Question Presented” in their petition for certiorari did not refer to this issue, Pet. for Cert. 2, we question that it is even properly before us. In any event, our resolution of the case makes it unnecessary to address this additional contention.

13

The District Court stated:

“1. The availability of equitable and declaratory relief in the Illinois state courts provides the plaintiff with a ‘plain, speedy and efficient' remedy. Tully v. Griffin, 429 U. S. 68 (1976).

“2. The non-payment of interest on refunds pursuant to Sections 675 and 716 of Chapter 120, Illinois Revised Statutes, does not render the remedy in Illinois courts not ‘plain, speedy and efficient.’ ” App. to Pet. for Cert. 20a-21a.

14

The Court of Appeals also held that the availability of a § 1983 action in state court does not bar federal jurisdiction under the Tax Injunction Act. 604 F. 2d, at 540. Because of the result in this case, we do not reach this issue.

15

Although the issue in Great Lakes concerned the availability of federal declaratory relief rather than the scope of the Tax Injunction Act itself, the decision was predicated on “[t]he considerations which persuaded federal courts of equity not to grant relief . . . and which led to the enactment of the [Tax Injunction] Act.” 319 U. S., at 300. We have no doubt that, had the case presented an injunction suit, the Court would have found it precluded under the Tax Injunction Act.

16

The Johnson Act, 28 U. S. C. § 1342 (emphasis added), states in pertinent part:

, "The district courts shall not enjoin, suspend or restrain the operation of, or compliance with, any order affecting rates chargeable by a public utility and made by a State administrative agency or a rate-making body of a State political subdivision, where

“(4) A ■plain, speedy and efficient remedy may be had in the courts of such State.”

17

This argument is discussed infra, at 518-521.

18

Although respondent could have raised federal constitutional claims in her objection to the Collector’s Application for Judgment, she expressly declined to do so in her prior objections in 1974, 1975, and 1976. For example, her objection to the 1976 tax bill stated: “Objector reserves to the federal courts the adjudication of its rights under the United States Constitution . . . .” Objections for 1976, p. 8, ¶ 8. She did claim that the ordinance and assessment were violations of equal protection and due process under the Illinois Constitution. Id., at 9, ¶ 11.

19

The dissent construes our opinion to mean that “a state remedy which could not possibly afford any relief or which had the potential for only nominal relief would defeat federal jurisdiction.” Post, at 537 (footnote omitted). The dissent thus concludes that, under our view, “a computerized calculation accompanied by a preprinted rejection slip would qualify as a 'plain, speedy and efficient remedy.’ ” Post, at 530. But our opinion suggests nothing of the kind. We explicitly state that a state remedy must “provid [e] the taxpayer with a 'full hearing and judicial determination’ at which she may raise any and all constitutional objections to the tax.” Supra, at 514. The dissent’s hypothetical computer-card remedy would hardly meet this requirement.

The Tax Injunction Act embodied Congress’ decision to transfer jurisdiction over a class of substantive federal claims from the federal district courts to the state courts, as long as state-court procedures were “plain, speedy and efficient” and final review of the substantive federal claim could be obtained in this Court. Under the Illinois refund procedure, a taxpayer may raise all constitutional objections, including those based on the State’s failure to pay interest or to return all unconstitutionally collected taxes, in the Illinois legal refund proceeding, supra, at 514, after which the litigants have an opportunity to seek review in this Court. The Act contemplates nothing more.

20

Neither the opinion below nor the brief for respondent specifies whether the remedy fails because it is not “plain,” not “speedy,” not “efficient,” or not a “remedy” at all. The superficial linguistic difficulty of describing interest payments in these terms can be readily observed. Indeed at oral argument, respondent’s counsel had some difficulty deciding under which of the words the Illinois remedy foundered:

“QUESTION: Do you equate inadequate with inefficient?

“MR. FOX: Yes, sir. ‘Inadequate’ has been used commonly in the federal court, sir, Mr. Chief Justice, with the ‘PS&E,’ plain, speedy, and efficient.

“QUESTION: Well, what you’re saying, it seems to me, is that you treat ‘efficient’ as a synonym for ‘adequate.’ And this remedy is not efficient, that is, adequate, because it isn’t speedy.

“MR. FOX: Nor is it plain.

“QUESTION: Well, I’m not sure what it means. Plain or fancy wouldn’t make much difference. The important thing is whether it’s speedy and whether it’s adequate. And speedy and adequate are really interrelated, aren’t they?

“MR. FOX: I believe so; yes. I think they are subsumed, that speedy is subsumed under the word adequate, which seems to be more generic.” Tr. of Oral Arg. 28, 34, 35.

21

In Hillsborough, the Court concluded that, because it was at best “speculative” whether the New Jersey courts followed the federal constitutional rule that a State may not “imposfe] on him against whom the discrimination has been directed the burden of seeking an upward revision of the taxes of other members of the class,” 326 U. S., at 623; see Sioux City Bridge Co. v. Dakota County, 260 U. S. 441, 445-447 (1923), federal jurisdiction would lie. In addition, protection of federal rights was uncertain because the State Board of Tax Appeals had no right to pass on constitutional questions, the allowance of a writ of certiorari to that Board from the New Jersey Supreme Court was only discretionary, and the refusal of a writ was not judicially reviewable by the Court of Errors and Appeals. 326 U. S., at 625-626.

22

A remedy to contest a tax that requires repetitive suits on the same issue in succeeding years may not be “efficient.” However, on the record properly before us, the Illinois remedy has not shown itself not “efficient.” It is true that respondent appealed unsuccessfully to the Board of Appeals for four straight years, 1974, 1975, 1976, and 1977, see n. 5, swpra, but it was not until after her 1977 appeal that the Circuit Court of Cook County rendered its judgment. Therefore, neither the County Assessor nor the Board had yet had the benefit of a judicial determination to weigh in their considerations. Further resort to the Illinois statutory refund remedy would become unnecessary should subsequent assessments reflect the Circuit Court's judgment of the correct assessment.

Respondent informs us, however, that her 1978 and 1979 tax assessments were set at the 1977 discriminatory level, despite a complaint filed with the Assessor for 1978 and appeals to the Board for both years. Brief for Respondent 2. Together with her previous four appeals, respondent notes that she has been forced to take remedial action for six successive years. Id,., at 31, n. 27. Because these additional facts are not part of the record before us, we have not considered them. Respondent may present these new facts in her pending suit in Federal District Court to enjoin collection of her 1978 property tax. See id., at 2.

23

For instance, discussing the New York state courts in 1839, David Dudley Field noted that “[sjpeedy justice is a thing unknown; and any justice, without delays almost ruinous, is most rare.” Vanderbilt, Improving the Administration of Justice — Two Decades of Development, 26 U. , 157 (1957). Many have long since lamented the seeming inseparability of judicial proceedings and delay. See, e. g., National Center for State Courts, Justice Delayed 2 (1978); Lagging Justice, 328 Annuals Am. Acad. Pol. & Soc. Sci. (1960); Vanderbilt, supra; Warren, Delay and Congestion in the Federal Courts, 42 J. Am. Jud. Soc. 6, 7-8 (1958); Congestion and Delay: A Selected Bibliography of Recent Materials 1953-1958, in Proceedings of the Attorney General's Conference on Court Congestion and Delay in Litigation 212-245 (1958).

24

For over half of the 13 courts surveyed, the median number of days was over a year and a half. National Center for State Courts, Justice Delayed 10-11 (1978). Delay has been a particularly pronounced problem for state trial courts located in metropolitan centers. See generally Virtue, The Two Faces of Janus: Delay in Metropolitan Trial Courts, in Lagging Justice, 328 Annals Am. Acad. Pol. & Soc. Sci. 125 (1960). This results in part from an observed correlation between population and calendar congestion. Institute of Judicial Administration, Calendar Status, in Proceedings of the Attorney General’s Conference on Court Congestion and Delay in Litigation 196 (1958). For example, in 1958, the average time from the beginning of suit until the commencement of jury trial was 18.8 months for counties with populations over 750,000, 11.4 months for counties between 500,000 and 750,000, and 5.6 months for counties under 500,000. Ibid.

25

Current statistics are only the latest in a long history of delay and congestion in federal and state courts. Congress discussed the problem of congestion in federal district courts in connection with the Tax Injunction Act itself. 81 Cong. Rec. 1417 (1937) (remarks of Sen. Bone) (citing portions of Report on the Johnson Act deemed applicable to the Tax Injunction Act). For the year ending June 30, 1930, 37.7% of federal-question law cases terminated without a jury in 13 selected Federal District Courts took 12 months or more to complete. American Law Institute, A Study of the Business of the Federal Courts, Pt. II, p. 87 (1934). In 1942, the median time interval for civil nonjury trials from filing to disposition in all federal district courts was 12.3 months. Annual Report of the Director of the Administrative Office of the U. S. Courts, Table 9 (1942). The median time for New York’s Southern District was 25 months. Ibid.

Unfortunately state-court statistics on civil litigation in the 1930’s and 1940’s are virtually nonexistent. The Institute of Judicial Administration conducted the first major compilation of state civil case data in 1953. See U. S. Dept. of Justice, State Court Caseload Statistics: The State of the Art 15, 22 (1978). Even the latest information on state-court time intervals is more complete for appellate than trial litigation. See National Center for State Courts, State Court Caseload Statistics: Annual Report 1976 (1980).

26

Part of the problem of delay inheres in the very nature of state tax administration. There has yet to be devised a taxing system universally viewed as speedy enough to resolve complaints. This is largely because “[t]he procedures for mass assessment and collection of state taxes and for administration and adjudication of taxpayers’ disputes with tax officials are generally complex and necessarily designed to operate according to established rules.” Perez v. Ledesma, 401 U. S. 82, 128, n. 17 (1971) (BreNNAN, J., concurring in part and dissenting in part).

The property tax is especially vulnerable to criticism over its administration. Unlike state income or sales taxes that usually can be calculated automatically from the taxpayer’s income or the price of a good or service, the property tax is levied on the value of real estate. This element necessarily introduces a degree of subjective individualized judgment by the assessor that would understandably give rise to frequent taxpayer challenges and place pressure on the appellate review procedures. See generally 0. Oldman & F. Schoettle, State and Local Taxes and Finance 262-265 (1974); Advisory Commission on Intergovernmental Relations, The Property Tax in a Changing Environment 3-20 (1974); H. Aaron, Who Pays the Property Tax?, 59-67 (1975); Pomp, What Is Happening to the Property Tax, 15 Assessors Journal 107, 108-116 (1980).

27

The dissent relies on four factors which it believes “combine to make the Illinois remedial scheme demonstrably unjust.” Post, at 538-541. Leaving aside the issue whether the phrase “demonstrably unjust” describes the proper inquiry, these four factors boil down to the same two elements of delay and failure to pay interest addressed in this Court’s opinion. The dissent’s first factor — “the tax assessments themselves reveal gross inequities,” post, at 539 — merely states that respondent has alleged a constitutional violation, surely not a ground for federal-court jurisdiction here. The second — that overassessment continues “notwithstanding [the taxpayer’s] formal protests and the manifest error in the original assessment,” ibid. — would appear to require error-free administration that even the best procedures could not guarantee. Indeed, absent a judicial determination of the correct assessment, it is not surprising that respondent’s “formal protests” failed to persuade the Assessor and Board of Appeals of their “manifest error.” See n. 22, supra. Here, respondent’s challenges to the three tax years were resolved within two years in a single court proceeding. Those challenges explicitly were not based on federal constitutional grounds, and it is hardly the duty of federal courts to intervene in state-law tax questions. N. 18, supra. As we suggest, n. 22, supra, the Federal District Court in respondent’s pending 1978 litigation may evaluate her latest claim in light of the “efficient” prong of our analysis, now that the Assessor and Board of Appeals are aware of the Circuit Court of Cook County’s adjudication and apparently have nevertheless repeated their prior assessment practices.

The dissent’s third factor — delay—and fourth factor — failure to pay interest — are addressed above.

28

The Tax Injunction Act was only one of several statutes reflecting congressional hostility to federal injunctions issued against state officials in the aftermath of this Court's decision in Ex parte Young, 209 U. S. 123, 155— 156 (1908) (holding that the Eleventh Amendment does not bar federal courts from enjoining unconstitutional actions of state officers). See generally Perez v. Ledesma, supra, at 106-115 (BrennaN, J., concurring in part and dissenting in part). See also S. Rep. No. 1035, 75th Cong., 1st Sess., 1 (1937) (“This legislation does not introduce a new principle, since the Congress has passed statutes of similar import”).

29

The Court of Appeals suggested that the purpose of the Act was to prevent out-of-state corporations, through diversity suits, from delaying payment of state taxes during the pendency of federal litigation while instate citizens would have to pay first and then litigate in state courts. 604 F. 2d, at 535. It is true that the drafters of the Act were particularly concerned with this practice of out-of-state corporations. S. Rep. No. 1035, supra, at 1-2; 81 Cong. Rec. 1416 (1937) (remarks of Sen. Bone). But the expansive language of the statute belies the notion that Congress was concerned exclusively with this problem. If Congress had wanted solely to address this issue, it surely would have done so by limiting the Act’s jurisdictional bar to suits brought in federal diversity jurisdiction.

In addition, the Court of Appeals’ narrow interpretation of the Act’s purpose might have the perverse effect of making the Act moot. In 1938, one year after its passage, this Court held that federal courts in diversity suits must apply the general case law as well as statutory law of the State. Erie R. Co. v. Tompkins, 304 U. S. 64 (1938). If federal courts followed the State’s equity law, then out-of-state corporations contesting taxes would be treated no differently from in-state citizens. See Note, The Tax Injunction Act and Suits for Monetary Relief, 46 U. Chi. L. Rev. 736, 743, n. 37 (1979).

30

One source suggested that the “apparent weight of authority” supported the opposite rule — that interest was allowable even in the absence of a statute. Annot., 112 A. L. R. 1183-1184 (1938). But even that source acknowledged the existence of the contrary view, one that “ha[d] been asserted somewhat more frequently in recent cases.” Id., at 1184. Accord, Annot., 57 A. L. R. 357-364 (1928).

31

See Educational Films Corp. v. Ward, 282 U. S. 379, 386, n. 2 (1931); Hopkins v. Southern California Telephone Co., 275 U. S. 393, 399-400 (1928); Procter & Gamble Distributing Co. v. Sherman, 2 F. 2d 165, 166 (SDNY 1924). These cases’ treatment of a no-interest refund remedy was undercut by later cases. Without expressly addressing the issue, the Court in two cases decided the same day, Matthews v. Rodgers, 284 U. S. 521, 528 (1932) (Mississippi refund remedy); Stratton v. St. Louis Southwestern R. Co., 284 U. S. 530, 534 (1932) (Illinois refund remedy), found adequate two state refund remedies that apparently did not pay interest, Gulf, M. & O. R. Co. v. Webster County, 194 Miss. 660, 662, 13 So. 2d 644, 645 (1943); Lakefront Realty Corp. v. Lorenz, 19 Ill. 2d 415, 422-423, 167 N. E. 2d 236, 240-241 (1960). Therefore, prior federal equity practice is a two-sided sword.

32

Commentators agree that this issue has never been definitively resolved. P. Bator, P. Mishkin, D. Shapiro, & H. Wechsler, Hart & Wechsler’s The Federal Courts and the Federal System 979 (2d ed. 1973); Berry, A Federal Forum for Broad Constitutional Deprivation by Property Tax Assessment, 65 Calif. L. Rev. 828, 833-834 (1977). Most believe that the Act is not equivalent to prior federal equity practice, although they do not agree on the quantity and quality of difference. See, e. g., Comment, 93 Ilarv. L. Rev. 1016, 1021-1022 (1980) (Act reduces scope of equity); Comment, Jurisdiction to Enforce Federal Statutes Regulating State Taxation: The Eleventh Amendment-Section 1341 Imbroglio, 70 Yale L. J. 636, 643 (1961) (Act limited relief available under equity); Note, Federal Court Interference with the Assessment and Collection of State Taxes, 59 Harv. L. Rev. 780, 783-784 (1946) (Act limited equity to relief from procedural defects in state courts).

33

Of course, this is not to say that prior federal equity cases may not be instructive on whether a state remedy is “plain, speedy and efficient.” And even where the Tax Injunction Act would not bar federal-court interference in state tax administration, principles of federal equity may nevertheless counsel the withholding of relief. See Great Lakes Dredge & Dock Co. v. Huffman, 319 U. S. 293, 301 (1943) (Act not “a mandatory withdrawal from [federal equity courts] of their traditional power to decline jurisdiction in the exercise of their discretion”).

34

Senator Bone noted that the Tax Injunction Act “does not take away any equitable right of a taxpayer, or deprive him of a day in court,” because a “full hearing and judicial determination of the controversy” remained assured. 81 Cong. Rec. 1416 (1937). See S. Rep. No. 1035, 75th Cong., 1st Sess., 2 (1937); H. R. Rep. No. 1503, 75th Cong., 1st Sess., 2 (1937). This statement was merely declaratory of the Act’s general continuation of an exception to its broad jurisdictional bar against federal injunctive relief.

35

“[S]uits in equity shall not be sustained in either of the courts of the United States, in any case where plain, adequate and complete remedy may be had at law.” § 16, 1 Stat. 82.

36

It is true that, if we found the Illinois remedy inadequate because of its failure to pay interest, the State or county could avoid any problems of federally enjoined tax payments by choosing to pay interest. See United States v. Livingston, 179 F. Supp. 9, 15 (EDSC 1959) (three-judge court), aff’d per curiam, 364 U. S. 281 (1960). But Congress surely did not intend that the threat of federal injunctive relief be used as a lever to force States to appropriate funds for interest payable to their taxpayers.