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Dormant Commerce Clause

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The Dormant Commerce Clause , or Negative Commerce Clause , in American constitutional law , is a legal doctrine that courts in the United States have inferred from the Commerce Clause in Article I of the US Constitution . The primary focus of the doctrine is barring state protectionism . The Dormant Commerce Clause is used to prohibit state legislation that discriminates against, or unduly burdens, interstate or international commerce . Courts first determine whether a state regulation discriminates on its face against interstate commerce or whether it has the purpose or effect of discriminating against interstate commerce. If the statute is discriminatory, the state has the burden to justify both the local benefits flowing from the statute and to show the state has no other means of advancing the legitimate local purpose.

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169-608: For example, it is lawful for Michigan to require food labels that specifically identify certain animal parts, if they are present in the product, because the state law applies to food produced in Michigan as well as food imported from other states and foreign countries; the state law would violate the Commerce Clause if it applied only to imported food or if it was otherwise found to favor domestic over imported products. Likewise, California law requires milk sold to contain

338-417: A 2-cent tax. For freight with hewn timber, animal food, agricultural products, and forest products, companies would pay a 3-cent tax. For all other products and freight not listed, companies would pay a 5-cent tax. The act also specifies that toll companies that charge other businesses for the use of their transportation lines could add the freight tax to their tolls if the freight had not already been taxed by

507-497: A 4.2-magnitude earthquake occurred on Saturday, May 2, 2015, shortly after noon, about five miles south of Galesburg, Michigan (9 miles southeast of Kalamazoo ) in central Michigan, about 140 miles west of Detroit, according to the Colorado-based U.S. Geological Survey 's National Earthquake Information Center . No major damage or injuries were reported, according to then-Governor Rick Snyder 's office. State government

676-555: A Mississippi privilege tax upon a Michigan company engaged in the business of shipping automobiles to Mississippi dealers. The Court there explained: Appellant's attack is based solely on decisions of this Court holding that a tax on the "privilege" of engaging in an activity in the State may not be applied to an activity that is part of interstate commerce. See, e. g., Spector Motor Service v. O'Connor , 340 U.S. 602 (1951); Freeman v. Hewit , 329 U.S. 249 (1946). This rule looks only to

845-542: A burden on interstate commerce that "is clearly excessive in relation to the putative local benefits." Over the years, the Supreme Court has consistently held that the language of the Commerce Clause contains a further, negative command prohibiting certain state taxation even when Congress has failed to legislate on the subject. More recently, in the 2015 case of Comptroller of the Treasury of Maryland v. Wynne ,

1014-581: A certain percentage of milk solids that federal law does not require, which is allowed under the Dormant Commerce Clause doctrine because California's stricter requirements apply equally to California-produced milk and imported milk and so does not discriminate against or inappropriately burden interstate commerce. The doctrine was initially envisioned by Chief Justice John Marshall in the 1820s. The idea that regulation of interstate commerce may to some extent be an exclusive Federal power

1183-459: A comparison of substantially similar entities." General Motors Corp. v. Tracy , 519 U.S. 278 (1997). But States and municipalities are not private businesses—far from it. Unlike private enterprise, government is vested with the responsibility of protecting the health, safety, and welfare of its citizens. . . . These important responsibilities set state and local government apart from a typical private business. The Court's further explained: By

1352-488: A concurrent power, rather than an exclusive federal power, and it treats regulation that does so as an exclusive federal power. Thus, the modern doctrine says that congressional power over interstate commerce is somewhat exclusive but "not absolutely exclusive". The approach began in the 1851 case of Cooley v. Board of Wardens , in which Justice Benjamin R. Curtis wrote for the Court: "Either absolutely to affirm, or deny that

1521-421: A county contractor doubled its waste disposal rate on six weeks' notice The Court would not interfere with local government's efforts to solve an important public and safety problem. The contrary approach of treating public and private entities the same under the dormant Commerce Clause would lead to unprecedented and unbounded interference by the courts with state and local government. The dormant Commerce Clause

1690-513: A decade, the use of regulation to channel private commerce to designated private disposal sites was greatly restricted as the result of the Carbone decision discussed below. Flow control laws typically came in various designs. One common theme was the decision to fund local infrastructure by guaranteeing a minimum volume of business for privately constructed landfills, incinerators, composters or other costly disposal sites. In some locales, choice of

1859-413: A designated transfer station before leaving the municipality. The avowed purpose of the ordinance is to retain the processing fees charged at the transfer station to amortize the cost of the facility. Because it attains this goal by depriving competitors, including out-of-state firms, of access to a local market, we hold that the flow control ordinance violates the Commerce Clause. The Court plainly regarded

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2028-536: A few hundred feet tall. It is divided by a low water divide running north and south. The larger portion of the state is on the west of this and gradually slopes toward Lake Michigan. The highest point in the Lower Peninsula is either Briar Hill at 1,705 feet (520 m), or one of several points nearby in the vicinity of Cadillac . The lowest point is the surface of Lake Erie at 571 feet (174 m). The geographic orientation of Michigan's peninsulas makes for

2197-540: A financial burden on the state. The costs of rebuilding devastated battlefields and the economic losses from decreased wartime manufacturing created lasting challenges for Pennsylvania’s economy. On August 25, 1864, the Legislature of Pennsylvania passed 'An act to provide additional revenue for the use of the Commonwealth'. The act imposed a tax on all freight transported within the state of Pennsylvania and

2366-605: A flow control regimen quite similar to that considered in Carbone. The "only salient difference is that the laws at issue here require haulers to bring waste to facilities owned and operated by a state-created public benefit corporation." The Court decided that the balancing test should apply, because the regulatory scheme favored the government owned facility, but treated all private facilities equally. Compelling reasons justify treating these laws differently from laws favoring particular private businesses over their competitors. "Conceptually, of course, any notion of discrimination assumes

2535-615: A freight transportation company. They carried coal from the mountains of Pennsylvania to Port Richmond outside of Philadelphia , Pennsylvania. They also carried coal to the Schuylkill Canal . Both destinations primarily exported the coal to other states. On October 25th, 1866, the accounting officers of Pennsylvania delivered a financial account to Reading Railroad Co. for a tax on their freight tonnage. This account accumulated charges over three consecutive quarters. The charges were as follows: Reading Railroad Co. refused to pay

2704-648: A highly technical and specialized venture, requiring the application of commerce clause principles to an understanding of specialized tax law. In addition to satisfying the four-prong test in Complete Auto Transit , the Supreme Court has held state taxes which burden international commerce cannot create a substantial risk of multiple taxations and must not prevent the federal government from "speaking with one voice when regulating commercial relations with foreign governments". In Kraft Gen. Foods, Inc. v. Iowa Dept. of Revenue and Finance , 505 U.S. 71 (1992),

2873-560: A journal produced by taxpayers in New Mexico but circulated both inside and outside the State. Although the assessment could have been sustained solely on prior precedent, Justice Stone added a dash of the pragmatism that, with a brief interlude, has since become our aspiration in this quarter of the law. ... The Court explained that "[i]t was not the purpose of the commerce clause to relieve those engaged in interstate commerce from their just share of state tax burden even though it increases

3042-660: A landmark during the day to safely guide the passenger ships and freighters traveling the Great Lakes (see: lighthouses in the United States ). The state's rivers are generally small, short and shallow, and few are navigable. The principal ones include the Detroit River, St. Marys River, and St. Clair River which connect the Great Lakes; the Au Sable , Cheboygan , and Saginaw , which flow into Lake Huron;

3211-416: A local private processing company: In this light, the flow control ordinance is just one more instance of local processing requirements that we long have held invalid ... The essential vice in laws of this sort is that they bar the import of the processing service. Out-of-state meat inspectors, or shrimp hullers, or milk pasteurizers, are deprived of access to local demand for their services. Put another way,

3380-563: A long distance between the ends of the state. Ironwood , in the far western Upper Peninsula, lies 630 miles (1,010 kilometers) by highway from Lambertville in the Lower Peninsula's southeastern corner. The geographic isolation of the Upper Peninsula from Michigan's political and population centers makes the region culturally and economically distinct. Frequent attempts to establish the Upper Peninsula as its own state have failed to gain traction. A feature of Michigan that gives it

3549-572: A national market without needlessly intruding upon the States' police powers, each exercise of which no doubt has some effect on the commerce of the Nation." Camps Newfound/Owatonna v. Town of Harrison , 520 U.S. 564, 596 (1997) (Scalia, J., dissenting) (citing Okla. Tax Comm'n v. Jefferson Lines , 514 U.S. 175, 180–83 (1995)); see generally Boris I. Bittker , Regulation of Interstate and Foreign Commerce § 6.01[A], at 6–5 ("[T]he boundaries of

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3718-625: A nearly bloodless siege in 1812. A U.S. attempt to retake Detroit resulted in a severe American defeat in the River Raisin Massacre . This battle, still ranked as the bloodiest ever fought in the state, had the highest number of American casualties of any battle of the war. Michigan was recaptured by the Americans in 1813 after the Battle of Lake Erie . They used Michigan as a base to launch an invasion of Canada, which culminated in

3887-430: A permanent community there would strengthen French control over the upper Great Lakes and discourage British aspirations. The hundred soldiers and workers who accompanied Cadillac built a fort enclosing one arpent (about 0.85 acres (3,400 m ), the equivalent of just under 200 feet (61 m) per side) and named it Fort Pontchartrain . Cadillac's wife, Marie Thérèse Guyon, soon moved to Detroit, becoming one of

4056-457: A showing that the State has no other means to advance a legitimate local purpose. On the other hand, when a law is "directed to legitimate local concerns, with effects upon interstate commerce that are only incidental", that is, where other legislative objectives are credibly advanced and there is no patent discrimination against interstate trade, the Court has adopted a much more flexible approach,

4225-596: A significant amount of population due to global competition and the dramatic unavailability of manufacturing jobs. Meanwhile, Michigan had increased use of technology, specifically when the IBM Personal Computer started selling in the state, in which became mostly used at work. Michigan became the leading auto-producing state in the U.S., with the industry primarily located throughout the Midwestern United States ; Ontario, Canada; and

4394-550: A state law that banned nonreturnable milk containers made of plastic but permitted other nonreturnable milk containers. The Court found that the existence of a burden on out-of-state plastic industry was not 'clearly excessive' in comparison to the state's interest in promoting conservation. And the court continued: In Exxon, the Court stressed that the Commerce Clause protects the interstate market, not particular interstate firms, from prohibitive or burdensome regulations. A nondiscriminatory regulation serving substantial state purpose

4563-511: A state tax levied on gross receipts from interstate commerce, or upon the "freight carried" in interstate commerce, but would allow a tax merely measured by gross receipts from interstate commerce as long as the tax was formally imposed upon franchises, or "'in lieu of all taxes upon (the taxpayer's) property,'" Dissenting from this formal approach in 1927, Justice Stone remarked that it was "too mechanical, too uncertain in its application, and too remote from actualities, to be of value." Accompanying

4732-495: A strong federal government to regulate commerce and establish a Navy to ensure the economic prosperity of the nation. As European nations grew concerned about America's increased involvement in maritime trade, Hamilton warned that these nations may exploit individual states to monopolize the profits of their trade and limit their access to goods. Subsequently, Hamilton advocated for a unified approach to commerce that would implement consistent trade regulations across all states. This

4901-468: A tax of two cents per ton upon coal carried out of the State, may impose one of five dollars. Such an imposition, whether large or small, is a restraint of the privilege or right to have the subjects of commerce pass freely from one State to another without being obstructed by the intervention of State lines. The Court argued that permitting Pennsylvania to impose such a tax could result in an excessive amount of regulations that would hinder trade, undermining

5070-452: A test akin to the rational basis test, a minimum level of scrutiny. In USA Recycling, Inc. v. Town of Babylon , 66 F.3d 1272, 1281 (C.A.2 (N.Y.), 1995), the court explained: If the state activity constitutes "regulation" of interstate commerce, then the court must proceed to a second inquiry: whether the activity regulates evenhandedly with only "incidental" effects on interstate commerce, or discriminates against interstate commerce. As we use

5239-427: A warmer climate ( Köppen climate classification Dfa ) with hot summers and cold winters. The northern part of the Lower Peninsula and the entire Upper Peninsula has a more severe climate (Köppen Dfb ), with warm, but shorter summers and longer, cold to very cold winters. Some parts of the state average high temperatures below freezing from December through February, and into early March in the far northern parts. During

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5408-846: Is a state in the Great Lakes region of the Upper Midwest region of the United States . It borders Wisconsin to the southwest in the Upper Peninsula , and Indiana and Ohio to the south in the Lower Peninsula ; it is also connected by Lakes Superior , Michigan , Huron , and Erie to Minnesota and Illinois , and the Canadian province of Ontario . With a population of nearly 10.12 million and an area of 96,716 sq mi (250,490 km ), Michigan

5577-641: Is bounded on the south by the states of Ohio and Indiana , sharing land and water boundaries with both. Michigan's western boundaries are almost entirely water boundaries, from south to north, with Illinois and Wisconsin in Lake Michigan; then a land boundary with Wisconsin and the Upper Peninsula, that is principally demarcated by the Menominee and Montreal Rivers ; then water boundaries again, in Lake Superior, with Wisconsin and Minnesota to

5746-500: Is decentralized among three tiers—statewide, county and township . Counties are administrative divisions of the state, and townships are administrative divisions of a county. Both of them exercise state government authority, localized to meet the particular needs of their jurisdictions, as provided by state law. There are 83 counties in Michigan . Reading Railroad Company v. Pennsylvania (1872) Reading Railroad Co. v. Pennsylvania , 82 U.S. (15 Wall.) 232 (1872), often known as

5915-413: Is established, the burden shifts to the state or local government to show that the local benefits of the statute outweigh its discriminatory effects, and that the state or municipality lacked a nondiscriminatory alternative that could have adequately protected the relevant local interests. If the challenging party cannot show that the statute is discriminatory, then it must demonstrate that the statute places

6084-489: Is home to the country's three major automobile companies (whose headquarters are all in Metro Detroit). Once exploited for logging and mining, today the sparsely populated Upper Peninsula is important for tourism because of its abundance of natural resources. The Lower Peninsula is a center of manufacturing , forestry , agriculture , services , and high-tech industry. When the first European explorers arrived,

6253-409: Is not a roving license for federal courts to decide what activities are appropriate for state and local government to undertake, and what activities must be the province of private market competition. In this case, the citizens of Oneida and Herkimer Counties have chosen the government to provide waste management services, with a limited role for the private sector in arranging for transport of waste from

6422-560: Is not invalid simply because it causes some business to shift from a predominantly out-of-state industry to a predominantly in-state industry. Only if the burden on interstate commerce clearly outweighs the State's legitimate purpose does such a regulation violate the commerce clause. When a state statute regarding safety matters applies equally to interstate and intrastate commerce, the courts are generally reluctant to invalidate it even if it may have some impact on interstate commerce. In Bibb v. Navajo Freight Lines 359 U.S. 520, 524 (1959),

6591-404: Is only the mode of ascertaining the extent of the business. That no discrimination is made between freight carried wholly within the State, and that brought into or carried through or out of it, sets this, as I think, in a clear light, and is conclusive on the subject. Swayne argued that the tax was imposed on businesses instead of freight weight, as tonnage was used as a measurement in determining

6760-526: Is rugged. The state's highest point, in the Huron Mountains northwest of Marquette, is Mount Arvon at 1,979 feet (603 m). The peninsula is as large as Connecticut, Delaware, Massachusetts, and Rhode Island combined but has fewer than 330,000 inhabitants. The people are sometimes called "Yoopers" (from "U.P.'ers"), and their speech (the " Yooper dialect ") has been heavily influenced by the numerous Scandinavian and Canadian immigrants who settled

6929-562: Is the 10th-largest state by population, the 11th-largest by area, and the largest by area east of the Mississippi River . Its capital is Lansing , and its largest city is Detroit . Metro Detroit is among the nation's most populous and largest metropolitan economies. The name derives from a gallicized variant of the original Ojibwe word ᒥᓯᑲᒥ ( mishigami ), meaning "large water" or "large lake". Michigan consists of two peninsulas . The Lower Peninsula resembles

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7098-521: Is the state's largest metropolitan area (roughly 50% of the population resides there) and the eleventh largest in the United States. The Grand Rapids metropolitan area in Western Michigan is the state's fastest-growing metro area, with more than 1.3 million residents as of 2006 . Michigan consists of two peninsulas separated by the Straits of Mackinac . The 45th parallel north runs through

7267-476: The State Freight Tax Case , was a U.S. Supreme Court decision that ruled that the state of Pennsylvania violated the U.S. Constitution by imposing unjust taxes on interstate commerce . The case was brought by Reading Railroad Co., which challenged Pennsylvania's Act of August 25, 1864 , also referred to as 'An act to provide additional revenue for the use of the Commonwealth'. The act

7436-560: The American Revolution . When Quebec split into Lower and Upper Canada in 1791, Michigan was part of Kent County , Upper Canada. It held its first democratic elections in August 1792 to send delegates to the new provincial parliament at Newark (now Niagara-on-the-Lake ). Under terms negotiated in the 1794 Jay Treaty , Britain withdrew from Detroit and Michilimackinac in 1796. It retained control of territory east and south of

7605-654: The Battle of the Thames . But the more northern areas of Michigan were held by the British until the peace treaty restored the old boundaries. A number of forts, including Fort Wayne , were built by the United States in Michigan during the 19th century out of fears of renewed fighting with Britain. Michigan Territory governor and judges established the University of Michigan in 1817, as the Catholepistemiad, or

7774-551: The Guardian Building , each of which has been designated as a National Historic Landmark (NHL). In 1927 a school bombing took place in Clinton County . The Bath School disaster resulted in the deaths of 38 schoolchildren and constitutes the deadliest mass murder in a school in U.S. history. Michigan converted much of its manufacturing to satisfy defense needs during World War II ; it manufactured 10.9% of

7943-541: The Mississippi River occurred within twenty miles of a railroad. One of the most significant Civil War battles was the Battle of Gettysburg , which took place in Gettysburg, Pennsylvania . This battle not only resulted in the highest number of war casualties, but is also regarded as the turning point of the war in favor of the Union. Pennsylvania's railroads played a crucial role in supplying this battle, which placed

8112-587: The Netherlands were especially numerous. Migration from Appalachia and of Black Southerners as part of the Great Migration increased in the 1930s, with many settling in Metro Detroit. Although Michigan has developed a diverse economy, in the early 20th century it became widely known as the center of the U.S. automotive industry , which developed as a major national economic force. It

8281-560: The North Country National Scenic Trail passes through Michigan. With 78 state parks , 19 state recreation areas, and six state forests , Michigan has the largest state park and state forest system of any state. Michigan has a continental climate with two distinct regions. The southern and central parts of the Lower Peninsula (south of Saginaw Bay and from the Grand Rapids area southward) have

8450-581: The Ontonagon , and Tahquamenon , which flow into Lake Superior; and the St. Joseph , Kalamazoo , Grand , Muskegon , Manistee , and Escanaba , which flow into Lake Michigan. The state has 11,037 inland lakes—totaling 1,305 square miles (3,380 km ) of inland water—in addition to 38,575 square miles (99,910 km ) of Great Lakes waters. No point in Michigan is more than six miles (9.7 km) from an inland lake or more than 85 miles (137 km) from one of

8619-487: The automotive industry . Ford's development of the moving assembly line in Highland Park marked a new era in transportation. Like the steamship and railroad, mass production of automobiles was a far-reaching development. More than the forms of public transportation, the affordable automobile transformed private life. Automobile production became the major industry of Detroit and Michigan, and permanently altered

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8788-739: The $ 46,520 portion of the tax because they believed Pennsylvania's Act of August 25, 1864 only had the authority to tax freight transported and delivered within Pennsylvania. They argued that the latter tax imposed unconstitutional regulations on interstate commerce. The case was first brought to the Court of Common Pleas in Dauphin County, Pennsylvania . The jury found that the goods were originally intended for export beyond Pennsylvania state lines and were instructed by Judge Pearson to rule in favor of Reading Railroad Co.. Judge Pearson's ruling

8957-437: The 1830s, Michigan had 30,000 residents, more than enough to apply and qualify for statehood. On November 1, 1935, the U.S. Post Office issued a commemorative 3-cent stamp celebrating the 100th anniversary of Michigan statehood. Michigan's statehood, however, wasn't officially established until January 26, 1837, but since the campaign for statehood actually began in 1835, Michigan chose to hold its centennial celebration in 1935,

9126-415: The 1980s, spurred by RCRA 's emphasis on comprehensive local planning, many states and municipalities sought to promote investment in more costly disposal technologies, such as waste-to-energy incinerators, state-of-the-art landfills, composting and recycling. Some states and localities sought to promote private investment in these costly technologies by guaranteeing a longterm supply of customers. For about

9295-531: The 1980s, the Counties confronted what they could credibly call a solid waste "'crisis.'" ... Many local landfills were operating without permits and in violation of state regulations. Sixteen were ordered to close and remediate the surrounding environment, costing the public tens of millions of dollars. These environmental problems culminated in a federal clean-up action against a landfill in Oneida County;

9464-851: The British forces, ending the French and Indian War (1754–1763), the North American front of the Seven Years' War in Europe. Under the 1763 Treaty of Paris , Michigan and the rest of New France east of the Mississippi River were ceded by defeated France to Great Britain. After the Quebec Act was passed in 1774, Michigan became part of the British Province of Quebec . By 1778, Detroit's population reached 2,144 and it

9633-686: The Colonies and later among the States under the Articles of Confederation ." As with the Court's application of the dormant commerce clause to discriminatory regulation, the pre- New Deal Court attempted to apply a formalistic approach to state taxation alleged to interfere with interstate commerce. The history is described in Oklahoma Tax Commission v. Jefferson Lines, Inc. , 514 U.S. 175 (1995): The command has been stated more easily than its object has been attained, however, and

9802-559: The Constitution, the Import-Export Clause would not lead to the same result that we reach under the dormant Commerce Clause". Application of the dormant commerce clause to state taxation is another manifestation of the Court's holdings that the Commerce Clause prevents a State from retreating into economic isolation or jeopardizing the welfare of the Nation as a whole, as it would do if it were free to place burdens on

9971-591: The Court addressed Maryland's unusual practice of taxing personal income earned in Maryland, and taxing personal income of its citizens earned outside Maryland, without any tax credit for income tax paid to other states. The Court held this sort of double-taxation to be a violation of the dormant Commerce Clause. The Court faulted Justice Antonin Scalia 's criticism of the dormant Commerce Clause doctrine by saying that he failed to "explain why, under his interpretation of

10140-615: The Court explained that a state regulation having only "incidental" effects on interstate commerce "will be upheld unless the burden imposed on such commerce is clearly excessive in relation to the putative local benefits". When weighing burdens against benefits, a court should consider both "the nature of the local interest involved, and ... whether it could be promoted as well with a lesser impact on interstate activities". Thus regulation designed to implement public health and safety, or serve other legitimate state interests, but impact interstate commerce as an incident to that purpose, are subject to

10309-422: The Court's effort to preserve a national market has, on numerous occasions, come into conflict with the states' traditional power to "legislat[e] on all subjects relating to the health, life, and safety of their citizens." Huron Portland Cement Co. v. City of Detroit , 362 U.S. 440, 443 (1960). On these occasions, the Supreme Court has "struggled (to put it nicely) to develop a set of rules by which we may preserve

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10478-416: The Court's understanding of the dormant Commerce Clause has taken some turns. In its early stages, the Court held the view that interstate commerce was wholly immune from state taxation "in any form", "even though the same amount of tax should be laid on (intrastate) commerce". This position gave way in time to a less uncompromising but formal approach, according to which, for example, the Court would invalidate

10647-521: The Detroit River, which are now included in Ontario, Canada. Questions remained over the boundary for many years, and the United States did not have uncontested control of the Upper Peninsula and Drummond Island until 1818 and 1847, respectively. During the War of 1812 , the United States forces at Fort Detroit surrendered Michigan Territory (effectively consisting of Detroit and the surrounding area) after

10816-481: The Dormant Commerce Clause, the Court believed that allowing Pennsylvania to tax freight could lead to burdensome restrictions on interstate commerce. The Court expressed its concerns about the impact of such taxes: And as there is no limit to the rate of taxation [Pennsylvania] may impose, if she can tax at all, it is obvious the condition may be made so onerous that an interchange of commodities with other States would be rendered impossible. The same power that may impose

10985-685: The French established a trading post and Fort St. Joseph along the St. Joseph River at the present-day city of Niles . In 1701, French explorer and army officer Antoine de la Mothe Cadillac founded Fort Pontchartrain du Détroit or "Fort Pontchartrain on-the-Strait" on the strait, known as the Detroit River , between lakes Saint Clair and Erie . Cadillac had convinced King Louis XIV's chief minister, Louis Phélypeaux, Comte de Pontchartrain , that

11154-631: The Great Lakes. The state is home to several areas maintained by the National Park Service including: Isle Royale National Park , in Lake Superior, about 30 miles (48 km) southeast of Thunder Bay, Ontario. Other national protected areas in the state include: Keweenaw National Historical Park , Pictured Rocks National Lakeshore , Sleeping Bear Dunes National Lakeshore , Huron National Forest , Manistee National Forest , Hiawatha National Forest , Ottawa National Forest and Father Marquette National Memorial . The largest section of

11323-504: The Lower Peninsula, Michigan is drained by the Great Lakes- St. Lawrence watershed and is the only state with the majority of its land thus drained. No point in the state is more than six miles (9.7 km) from a natural water source or more than 85 miles (137 km) from a Great Lakes shoreline. The Great Lakes that border Michigan from east to west are Lake Erie , Lake Huron , Lake Michigan and Lake Superior . The state

11492-704: The North aimed to preserve the union of the country, ultimately leading to the outbreak of war. The war lasted for approximately four years until the Confederacy surrendered. Pennsylvania played a crucial role in American industrialization before the Civil War. The state's rich deposits of coal, iron, and other raw materials were essential for powering machinery. Pennsylvania's foundries alone produced nearly 270,000 tons of iron in 1860, showcasing its significance to

11661-442: The North. To support the extensive manufacturing industry, the North required a railroad system to facilitate the transportation of raw materials, finished goods, and large machinery. During the Civil War, the Union took full advantage of its extensive railroad system. Union General William Tecumseh Sherman skillfully used these rail lines to deliver fresh supplies and soldiers to the battlefields. Notably, ever battle fought east of

11830-548: The Southern United States. With almost ten million residents in 2010, Michigan is a large and influential state, ranking tenth in population among the fifty states. Detroit is the centrally located metropolitan area of the Great Lakes megalopolis and the second-largest metropolitan area in the U.S. (after Chicago ) linking the Great Lakes system. The Metro Detroit area in Southeast Michigan

11999-641: The Spector rule, the economic realities in Railway Express I became irrelevant. The Spector rule (against privilege taxes) had come to operate only as a rule of draftsmanship, and served only to distract the courts and parties from their inquiry into whether the challenged tax produced results forbidden by the Commerce Clause. The death knell of formalism occurred in Complete Auto Transit, Inc v. Brady , 430 U.S. 274 (1977), which approved

12168-470: The State prior to export); South-Central Timber Development, Inc. v. Wunnicke , 467 U.S. 82 (1984) (striking down an Alaska regulation that required all Alaska timber to be processed within the State prior to export). The Court has defined "protectionist" state legislation as "regulatory measures designed to benefit in-state economic interests by burdening out-of-state competitors". New Energy Co. of Indiana v. Limbach , 486 U.S. 269, 273–74 (1988). In

12337-412: The State's own economy is not a direct beneficiary of the discrimination." Discrimination in the flow of interstate commerce has arisen in a variety of contexts. A line of important cases has dealt with local processing requirements. Under the local processing requirement, a municipality seeks to force the local processing of raw materials before they are shipped in interstate commerce. The basic idea of

12506-744: The State); Foster-Fountain Packing Co. v. Haydel , 278 U.S. 1 (1928) (striking down a Louisiana statute that forbade shrimp to be exported unless the heads and hulls had first been removed within the State); Johnson v. Haydel , 278 U.S. 16 (1928) (striking down analogous Louisiana statute for oysters); Toomer v. Witsell , 334 U.S. 385 (1948) (striking down South Carolina statute that required shrimp fishermen to unload, pack, and stamp their catch before shipping it to another State); Pike v. Bruce Church, Inc. , supra (striking down Arizona statute that required all Arizona-grown cantaloupes to be packaged within

12675-438: The Supreme Court concluded that the state was overstepping its authority, as the tax was imposed on freight rather than the transportation services themselves. Justice Noah H. Swayne dissented from the Court's decision. Swayne interpreted that the tax was levied on businesses instead of freight: I dissent from the opinion just read. In my judgment, the tax is imposed upon the business of those required to pay it. The tonnage

12844-533: The Supreme Court considered a case in which Iowa taxed dividends from foreign subsidiaries, without allowing a credit for taxes paid to foreign governments, but not dividends from domestic subsidiaries operating outside Iowa. This differential treatment arose from Iowa's adoption of the definition of "net income" used by the Internal Revenue Service . For federal income tax purposes, dividends from domestic subsidiaries are allowed to be exempted from

13013-430: The Supreme Court issued a decision in favor of Reading Railroad Co., declaring Pennsylvania's Act of August 25, 1864 unconstitutional for imposing a tax on freight. Justice William Strong authored the majority opinion of the Court. In reaching the decision, the Court applied the Dormant Commerce Clause, interpreted by the Commerce Clause of the U.S. Constitution. Strong stated: [The decision] calls upon us to trace

13182-516: The U.S Constitution’s intent to create a unified economic system. It expressed concerns that this tax could disrupt market competition by disadvantaging out-of-state businesses. In line with the established principle in Cooley v. Board of Wardens , that states cannot directly tax interstate commerce, the Court ultimately declared the tax unconstitutional to protect the integrity of commercial activities crossing state lines. The Court also accounted for

13351-639: The U.S.), an Anishinaabe tribe, were established in Michigan's Upper Peninsula and northern and central Michigan . Bands also inhabited Ontario and southern Manitoba , Canada; and northern Wisconsin , and northern and north-central Minnesota . The Ottawa Indians lived primarily south of the Straits of Mackinac in northern, western , and southern Michigan , but also in southern Ontario, northern Ohio, and eastern Wisconsin. The Potawatomi were in southern and western Michigan, in addition to northern and central Indiana, northern Illinois, southern Wisconsin, and southern Ontario. Other Algonquian tribes in Michigan, in

13520-510: The United States Supreme Court stated: 'These safety measures carry a strong presumption of validity when challenged in court. If there are alternative ways of solving a problem, we do not sit to determine which of them is best suited to achieve a valid state objective. Policy decisions are for the state legislature, absent federal entry into the field. Unless we can conclude on the whole record that "the total effect of

13689-513: The United States military armaments produced during the war, ranking second (behind New York ) among the 48 states. Detroit continued to expand through the 1950s, at one point doubling its population in a decade. After World War II, housing was developed in suburban areas outside city cores to meet demand for residences. The federal government subsidized the construction of interstate highways , which were intended to strengthen military access, but also allowed commuters and business traffic to travel

13858-697: The University of Michigania. The population grew slowly until the opening in 1825 of the Erie Canal through the Mohawk Valley in New York, connecting the Great Lakes to the Hudson River and New York City. The new route attracted a large influx of settlers to the Michigan territory. They worked as farmers, lumbermen, shipbuilders, and merchants and shipped out grain, lumber, and iron ore. By

14027-534: The [State's] off-limits area are, and always have been, enveloped in a haze."). Those rules are "simply stated, if not simply applied." Camps Newfound/Owatonna, 520 U.S. at 596 (Scalia, J., dissenting). A frequently cited example of the deference afforded to the powers of state and local government may be found in Exxon Corp. v. Maryland , 437 U.S. 117 (1978), where the State of Maryland barred producers of petroleum products from operating retail service stations in

14196-643: The [state] act empowering the Black Bird Creek Marsh Company to place a dam across the creek, can, under all the circumstances of the case, be considered as repugnant to the power to regulate commerce in its dormant state, or as being in conflict with any law passed on the subject." If Marshall was suggesting that the power over interstate commerce is an exclusive federal power , the Dormant Commerce Clause doctrine eventually developed very differently: it treats regulation that does not discriminate against or unduly burden interstate commerce as

14365-449: The ability to bond for other purposes might be impaired. But by guaranteeing customers for a privately constructed and financed facility, a private entity could issue its own bonds, privately, on the strength of the public's waste assurance. The private character of flow control regimens can thus be explained in part by the desire to utilize particular kinds of public financing devices. It can also be explained by significant encouragement at

14534-520: The amount of business being done. He further argued that the tax was enforced uniformly as the price per ton did not differentiate between freight transported locally and freight transported across state lines. The concept of U.S. commerce was first discussed in The Federalist Papers , a collection of documents written to promote the ratification of the U.S. Constitution. Alexander Hamilton authored Federalist No. 11 , which argued for

14703-463: The area during the lumbering and mining boom of the late 19th century. The Lower Peninsula is shaped like a mitten and many residents hold up a hand to depict where they are from. It is 277 miles (446 km) long from north to south and 195 miles (314 km) from east to west and occupies nearly two-thirds of the state's land area. The surface of the peninsula is generally level, broken by conical hills and glacial moraines usually not more than

14872-560: The area, settling largely along the waterways. After France's defeat in the French and Indian War in 1762, the region came under British rule. Britain ceded the territory to the newly independent United States after its defeat in the American Revolutionary War . The area was part of the larger Northwest Territory until 1800, when western Michigan became part of the Indiana Territory . Michigan Territory

15041-480: The case of Gibbons v. Ogden , Marshall wrote that the power to regulate interstate commerce "can never be exercised by the people themselves, but must be placed in the hands of agents, or lie dormant." In concurrence, Justice William Johnson was even more emphatic that the Constitution is "altogether in favor of the exclusive grants to Congress of power over commerce." Later, in the case of Willson v. Black-Bird Creek Marsh Co. , Marshall wrote: "We do not think that

15210-475: The coast is much indented. Keweenaw Bay, Whitefish Bay , and the Big and Little Bays De Noc are the principal indentations on the Upper Peninsula. The Grand and Little Traverse , Thunder , and Saginaw bays indent the Lower Peninsula. Michigan has the second longest shoreline of any state—3,288 miles (5,292 km), including 1,056 miles (1,699 km) of island shoreline. The state has numerous large islands ,

15379-559: The coldest recorded temperature is −51 °F (−46 °C) at Vanderbilt on February 9, 1934. The state averages 30 days of thunderstorm activity per year. These can be severe, especially in the southern part of the state. The state averages 17 tornadoes per year, which are more common in the state's extreme southern section. Portions of the southern border have been almost as vulnerable historically as states further west and in Tornado Alley . For this reason, many communities in

15548-409: The commerce clause. In overruling prior decisions which struck down privilege taxes per se, the Court noted the following, in what has become a central component of commerce clause state taxation jurisprudence: We note again that no claim is made that the activity is not sufficiently connected to the State to justify a tax, or that the tax is not fairly related to benefits provided the taxpayer, or that

15717-486: The cost of doing the business." During the transition period, some taxes were upheld based on a careful review of the actual economic impact of the tax, and other taxes were reviewed based on the kind of tax involved, whether the tax had a nefarious impact on commerce or not. Under this formalistic approach, a tax might be struck down, and then re-passed with exactly the same economic incidence, but under another name, and then withstand review. The absurdity of this approach

15886-417: The curb to the public facilities. The citizens could have left the entire matter for the private sector, in which case any regulation they undertook could not discriminate against interstate commerce. But it was also open to them to vest responsibility for the matter with their government, and to adopt flow control ordinances to support the government effort. It is not the office of the Commerce Clause to control

16055-405: The decision as a relatively unremarkable decision, not a bold stroke. As the Court wrote: "The case decided today, while perhaps a small new chapter in that course of decisions, rests nevertheless upon well-settled principles of our Commerce Clause jurisprudence." And, the Court made it plain, that the problem with Clarkstown's ordinance was that it created a local processing requirement protective of

16224-412: The decision of the voters on whether government or the private sector should provide waste management services. "The Commerce Clause significantly limits the ability of States and localities to regulate or otherwise burden the flow of interstate commerce, but it does not elevate free trade above all other values." The history of commerce clause jurisprudence evidences a distinct difference in approach where

16393-412: The defendants in that case named over local businesses and several municipalities and school districts as third-party defendants The "crisis" extended beyond health and safety concerns. The Counties had an uneasy relationship with local waste management companies, enduring price fixing, pervasive overcharging, and the influence of organized crime. Dramatic price hikes were not uncommon: In 1986, for example,

16562-671: The distinct shape of a mitten is the Thumb , which projects into Lake Huron, forming Saginaw Bay . Other notable peninsulas of Michigan include the Keweenaw Peninsula , which projects northeasterly into Lake Superior from the Upper Peninsula and largely comprising Michigan's Copper Country region, and the Leelanau Peninsula , projecting from the Lower Peninsula into Lake Michigan, forming Michigan's "little finger". Numerous lakes and marshes mark both peninsulas, and

16731-535: The economic and social divide between the regions, particularly around the debate over free-market labor versus slave labor. Following the presidential election of unionist, Abraham Lincoln , southern leaders feared the abolition of slavery and tensions heightened. The South then formed the Confederate States of America , in attempt to secede from the other states. While the South sought independence,

16900-691: The entire Lower Peninsula. The Upper Peninsula exhibits Lower Silurian sandstones, limestones, copper and iron bearing rocks, corresponding to the Huronian system of Canada . The central portion of the Lower Peninsula contains coal measures and rocks of the Pennsylvanian period. Devonian and sub-Carboniferous deposits are scattered over the entire state. Michigan rarely experiences earthquakes , and those that it does experience are generally smaller ones that do not cause significant damage. A 4.6-magnitude earthquake struck in August 1947. More recently,

17069-418: The fact that the incidence of the tax is the "privilege of doing business"; it deems irrelevant any consideration of the practical effect of the tax. The rule reflects an underlying philosophy that interstate commerce should enjoy a sort of "free trade" immunity from state taxation. Complete Auto Transit is the last in a line of cases that gradually rejected a per se approach to state taxation challenges under

17238-420: The fact that the state did not own its transportation infrastructure, as misinterpreted by the Supreme Court of Pennsylvania. It noted that the tax did not serve as compensation for using state-owned infrastructure, as Pennsylvania did not own its railroads or canals. The Court distinguished between a tax and a toll, as a tax is a sovereign demand and a toll is a fee for services or infrastructure. Ultimately,

17407-439: The first European women to settle in what was considered the wilderness of Michigan. The town quickly became a major fur-trading and shipping post. The Église de Saint-Anne (Catholic Church of Saint Anne) was founded the same year. While the original building does not survive, the congregation remains active. Cadillac later departed to serve as the French governor of Louisiana from 1710 to 1716. French attempts to consolidate

17576-535: The five Great Lakes and Lake St. Clair . It also has 64,980 inland lakes and ponds . Michigan has the second-most water area of any state, behind only Alaska. The area was first occupied by a succession of Native American tribes over thousands of years. In the 17th century, French explorers claimed it as part of the New France colony, when it was largely inhabited by Indigenous peoples. French and Canadian traders and settlers, Métis , and others migrated to

17745-446: The flow control device was driven by state bonding laws, or municipal finance concerns. If a county or other municipality issued general obligation bonds for construction of a costly incinerator, for example, state laws might require a special approval process. If approval could be obtained, the bonds themselves would be counted against governmental credit limitations, or might impact the governmental body's credit rating: in either instance

17914-538: The flow of commerce across its borders that commerce wholly within those borders would not bear. The Court's taxation decisions thus "reflected a central concern of the Framers that was an immediate reason for calling the Constitutional Convention: the conviction that in order to succeed, the new Union would have to avoid the tendencies toward economic Balkanization that had plagued relations among

18083-441: The form of "going concern" value as measured by gross receipts. The Court upheld the reworded statute as not violative of the prohibition on privilege taxes, even though the impact of the old tax and new were essentially identical. There was no real economic difference between the statutes in Railway Express I and Railway Express II . The Court long since had recognized that interstate commerce may be made to pay its way. Yet under

18252-418: The former and burdens the latter. Thus, in a dormant Commerce Clause case, a court is initially concerned with whether the law facially discriminates against out-of-state actors or has the effect of favoring in-state economic interests over out-of-state interests. Discriminatory laws motivated by "simple economic protectionism" are subject to a "virtually per se rule of invalidity", which can only be overcome by

18421-565: The fur trade led to the Fox Wars , in which the Meskwaki (Fox) and their allies fought the French and their Native allies. At the same time, the French strengthened Fort Michilimackinac at the Straits of Mackinac to better control their lucrative fur-trading empire. By the mid-18th century, the French also occupied forts at present-day Niles and Sault Ste. Marie, though most of the rest of

18590-483: The general contours of which were outlined in Pike v. Bruce Church, Inc. If the law is not outright or intentionally discriminatory or protectionist, but still has some impact on interstate commerce, the court will evaluate the law using a balancing test. The Court determines whether the interstate burden imposed by a law outweighs the local benefits. If such is the case, the law is usually deemed unconstitutional. In Pike ,

18759-708: The late 19th to early 20th century, working in lumbering areas in counties on the Lake Huron side of the Lower Peninsula, such as the Saginaw Valley, Alpena, and Cheboygan counties, as well as throughout the Upper Peninsula, with large concentrations in Escanaba and the Keweenaw Peninsula . The first statewide meeting of the Republican Party took place on July 6, 1854, in Jackson, Michigan , where

18928-537: The law as a safety measure in reducing accidents and casualties is so slight or problematical as not to outweigh the national interest in keeping interstate commerce free from interferences which seriously impede it" we must uphold the statute. There are two notable exceptions to the dormant Commerce Clause doctrine that can permit state laws or actions that otherwise violate the Dormant Commerce Clause to survive court challenges. Michigan Michigan ( / ˈ m ɪ ʃ ɪ ɡ ən / MISH -ig-ən )

19097-415: The laws thereof, shall make returns of freight and pay for the freight carried over, through, and upon that portion of their lines within this State, as if the whole of their respective lines were in this State. The act indicates that the tax is not intended to be a burden on the franchise of transportation companies or their property. Instead, it is specifically imposed on the freight itself. This means that

19266-464: The line, always difficult to be traced, between the limits of State sovereignty in imposing taxation, and the power and duty of the Federal government to protect and regulate interstate commerce. While, upon the one hand, it is of the utmost importance that the States should possess the power to raise revenue for all the purposes of a State government, by any means, and in any manner not inconsistent with

19435-429: The local processing ordinance was to provide favored access to local processors of locally produced raw materials. Examples of Supreme Court decisions in this vein are set out in its Carbone decision. They include Minnesota v. Barber , 136 U.S. 313, (1890) (striking down a Minnesota statute that required any meat sold within the State, whether originating within or without the State, to be examined by an inspector within

19604-673: The most populous tribes were the Algonquian peoples , which include the Anishinaabe groups of Ojibwe , Odaawaa/Odawa (Ottawa) , and the Boodewaadamii/Bodéwadmi (Potawatomi) . The three nations coexisted peacefully as part of a loose confederation called the Council of Three Fires . The Ojibwe, whose numbers are estimated to have been at least 35,000, were the largest. The Ojibwe Indians (also known as Chippewa in

19773-456: The nation. Many private colleges were founded as well, and the smaller cities established high schools late in the century. Michigan's economy underwent a transformation at the turn of the 20th century. Many individuals, including Ransom E. Olds , John and Horace Dodge , Henry Leland , David Dunbar Buick , Henry Joy , Charles King , and Henry Ford , provided the concentration of engineering know-how and technological enthusiasm to develop

19942-472: The national level, in national legislation as well as in federal executive policy to achieve environmental objectives utilizing private resources. Ironically, these public-private efforts often took the form of local processing requirements which ultimately ran afoul of the commerce clause. The Town of Clarkstown had decided that it wanted to promote waste assurance through a local private transfer station. The transfer station would process waste and then forward

20111-465: The nature of this [commerce] power requires exclusive legislation by Congress, is to lose sight of the nature of the subjects of this power, and to assert concerning all of them, what is really applicable but to a part." The first clear holding of the Supreme Court striking down a state law under the Dormant Commerce Clause came in the 1873 case Reading Railroad Company v. Pennsylvania . Justice Anthony Kennedy has written that: "The central rationale for

20280-551: The northern Union states and the southern Confederate states. Following the onset of the Industrial Revolution, the North's economy became powered by industrialization, focusing on large-scale manufacturing. Meanwhile, the South's economy relied on agriculture, particularly the production of cotton and tobacco. Southern state governments established slavery to support large-scale farming, which discouraged any push toward industrial development. This system deepened

20449-489: The offending local laws hoard a local resource—be it meat, shrimp, or milk—for the benefit of local businesses that treat it. 511 U.S. at 392–393. The Court's 2007 decision in United Haulers Association v. Oneida-Herkimer Solid Waste Management Authority starkly illustrates the difference in result when the Court finds that local regulation is not discriminatory. The Court dealt with

20618-476: The parent corporations income to avoid double taxation. The Iowa Supreme Court rejected a Commerce Clause claim because Kraft failed to show "that Iowa businesses receive a commercial advantage over foreign commerce due to Iowa's taxing scheme." Considering an Equal Protection Clause challenge, the Iowa Supreme Court held that the use of the federal government's definitions of income were convenient for

20787-682: The party adopted its platform. The state was predominantly Republican until the 1930s, reflecting the political continuity of migrants from across the Northern Tier of New England and New York. Michigan made a significant contribution to the Union in the American Civil War and sent more than forty regiments of volunteers to the federal armies. Michigan modernized and expanded its system of education in this period. The Michigan State Normal School, now Eastern Michigan University ,

20956-486: The plaintiff argued that Pennsylvania's Act of August 25, 1864, placed them at a competitive disadvantage because local businesses were not subjected to the same tax burden. The Supreme Court found that the tax could create distortions in the market, leading to inefficient resource allocation if Reading Railroad Co. was no longer able to operate to the best of its ability. The decision aimed to promote an environment more conducive to Pareto efficiency across state lines. However,

21125-521: The point in a competitive market in which all markets are in equilibrium and resources are allocated so that it is impossible to make one party better off without making another party worse off. In the context of commerce, any interference can disrupt the perfectly competitive market by changing the optimal resource allocation. State taxes pose prominent challenges to the free market as taxes on goods between local and out-of-state businesses can be marginally unequal. In Reading Railroad Co. v. Pennsylvania,

21294-441: The population boom. By the 1930s, so many immigrants had arrived that more than 30 languages were spoken in the public schools, and ethnic communities celebrated in annual heritage festivals. Over the years immigrants and migrants contributed greatly to Detroit's diverse urban culture, including popular music trends. The influential Motown Sound of the 1960s was led by a variety of individual singers and groups. Grand Rapids ,

21463-572: The powers which the people of the States have conferred upon the General Government, it is equally important that the domain of the latter should be preserved free from invasion, and that no State legislation should be sustained which defeats the avowed purposes of the Federal Constitution, or which assumes to regulate, or control subjects committed by that Constitution exclusively to the regulation of Congress. By applying

21632-546: The principal ones being the North Manitou and South Manitou , Beaver , and Fox groups in Lake Michigan; Isle Royale and Grande Isle in Lake Superior; Marquette, Bois Blanc , and Mackinac islands in Lake Huron; and Neebish , Sugar , and Drummond islands in St. Mary's River . Michigan has about 150 lighthouses , the most of any U.S. state. The first lighthouses in Michigan were built between 1818 and 1822. They were built to project light at night and to serve as

21801-587: The region more easily. Since 1960, modern advances in the auto industry have led to increased automation, high-tech industry, and increased suburban growth. Longstanding tensions in Detroit culminated in the Twelfth Street riot in July 1967. During the late 1970s and the early 1980s, increasing fuel costs and other factors made significantly more global competition and recession among families. Michigan lost

21970-517: The region remained unsettled by Europeans. France offered free land to attract families to Detroit, which grew to 800 people in 1765. It was the largest city between Montreal and New Orleans. French settlers also established small farms south of the Detroit River opposite the fort, near a Jesuit mission and Huron village. From 1660 until the end of French rule, Michigan was part of the Royal Province of New France . In 1760, Montreal fell to

22139-589: The revolution in approach in the Court's Congressional powers jurisprudence, the New Deal Court began to change its approach to state taxation as well. The Jefferson Lines decision continues: In 1938, the old formalism began to give way with Justice Stone's opinion in Western Live Stock v. Bureau of Revenue , 303 U.S. 250, which examined New Mexico's franchise tax, measured by gross receipts, as applied to receipts from out-of-state advertisers in

22308-541: The rule against discrimination is to prohibit state or municipal laws whose object is local economic protectionism, laws that would excite those jealousies and retaliatory measures the Constitution was designed to prevent." In order to determine whether a law violates a so-called "dormant" aspect of the Commerce Clause, the court first asks whether it discriminates on its face against interstate commerce. In this context, "discrimination" simply means differential treatment of in-state and out-of-state economic interests that benefits

22477-528: The second-largest city in Michigan also became an important center of manufacturing. Since 1838, the city has been noted for its furniture industry. In the 21st century, it is home to five of the world's leading office furniture companies. Grand Rapids is home to a number of major companies including Steelcase , Amway , and Meijer . Grand Rapids is also an important center for GE Aviation Systems . Michigan held its first United States presidential primary election in 1910. With its rapid growth in industry, it

22646-435: The shape of a mitten , and comprises a majority of the state's land area. The Upper Peninsula (often called "the U.P.") is separated from the Lower Peninsula by the Straits of Mackinac , a five-mile (8 km) channel that joins Lake Huron to Lake Michigan. The Mackinac Bridge connects the peninsulas. Michigan has the longest freshwater coastline of any political subdivision in the United States, being bordered by four of

22815-418: The socioeconomic life of the United States and much of the world. With the growth, the auto industry created jobs in Detroit that attracted immigrants from Europe and migrants from across the United States, including both blacks and whites from the rural South . By 1920, Detroit was the fourth-largest city in the U.S.. Residential housing was in short supply, and it took years for the market to catch up with

22984-888: The south and east, were the Mascouten , the Menominee , the Miami , the Sac (or Sauk), and the Meskwaki (Fox) . The Wyandot were an Iroquoian-speaking people in this area; they were historically known as the Huron by the French, and were the historical adversaries of the Iroquois Confederation . French voyageurs and coureurs des bois explored and settled in Michigan in the 17th century. The first Europeans to reach what became Michigan were those of Étienne Brûlé 's expedition in 1622. The first permanent European settlement

23153-399: The state and was "rationally related to the goal of administrative efficiency". The Supreme Court rejected the notion that administrative convenience was a sufficient defense for subjecting foreign commerce to a higher tax burden than interstate commerce. The Supreme Court held that "a State's preference for domestic commerce over foreign commerce is inconsistent with the Commerce Clause even if

23322-447: The state is seeking to exercise its public health and safety powers, on the one hand, as opposed to attempting to regulate the flow of commerce. The exact dividing line between the two interests, the right of states to exercise regulatory control over their public health and safety, and the interest of the national government in unfettered interstate commerce is not always easy to discern. One Court has written as follows: Not surprisingly,

23491-590: The state law should prevail, leaving any correction of errors to the federal judiciary . The Chief Justice of the Supreme Court of Pennsylvania found that the state's tax did not infringe on interstate commerce and was not discriminatory. His arguments were as follows: The Chief Justice agreed that imposing unfair taxes on specific groups would be discriminatory and could harm trade. However, he emphasized that this did not apply to businesses and individuals using infrastructure like railways, canals, and roads without paying taxes, as they benefited from these resources. It

23660-596: The state, marked by highway signs and the Polar-Equator Trail— along a line including Mission Point Light near Traverse City , the towns of Gaylord and Alpena in the Lower Peninsula and Menominee in the Upper Peninsula. With the exception of two tiny areas drained by the Mississippi River by way of the Wisconsin River in the Upper Peninsula and by way of the Kankakee - Illinois River in

23829-400: The state. The regulations were as follows: Where the same freight shall be carried over and upon different but continuous lines, said freight shall be chargeable with tax as if it had been carried but upon one line, and the whole tax shall be paid by such one of said companies as the State treasurer may select and notify thereof . Corporations whose lines of improvements are used by others for

23998-467: The state. "The fact that the burden of a state regulation falls on some interstate companies does not, by itself establish a claim of discrimination against interstate commerce," the Court wrote. The "Clause protects interstate market, not particular interstate firms, from prohibitive or burdensome regulations." Similarly, in Minnesota v. Clover Leaf Creamery Co. , 449 U.S. 456 (1981) the Court upheld

24167-428: The state. This increases the overall tax liabilities for these companies, particularly because they often handle larger freight volumes. They are also more likely to switch lines and use tolls if they don't have well-established property in the state. Pennsylvania's manufacturing industry relied on railroads for the transportation of coal. Notably, Reading Railroad Co. did not carry goods of its own because it served as

24336-413: The tax amount remains constant, regardless of the distance the freight travels. This structure implies that companies operating on connected lines can transport freight without incurring a great tax liability. The act further indicates that companies that operate across state lines and transport freight through Pennsylvania must report and pay taxes on the freight as if their entire operations are based in

24505-511: The tax discriminates against interstate commerce, or that the tax is not fairly apportioned. These four factors, nexus, relationship to benefits, discrimination, and apportionment, have come to be regarded as the four Complete Auto Transit factors applied repeatedly in subsequent cases. Complete Auto Transit must be recognized as the culmination of the Court's emerging commerce clause approach, not just in taxation, but in all of its aspects. Application of Complete Auto Transit to State taxation remains

24674-599: The tax power, the latter being one of the concurrent powers shared by the federal and state governments. Ultimately, the Philadelphia Convention decided upon the present language about duties of tonnage in Article I, Section 10 , which says: "No state shall, without the consent of Congress, lay any duty of tonnage   ..." The word "dormant", in connection with the Commerce Clause, originated in dicta of Chief Justice John Marshall . For example, in

24843-730: The tax violated the Commerce Clause , found in Article 1, Section 8, Clause 3 of U.S. Constitution, which grants Congress the power to regulate commerce between states and foreign nations to promote free trade. The decision specifically connects to the Dormant Commerce Clause , as Congress can prohibit states from enacting laws that discriminate against or unduly burden interstate commerce, regardless of prior federal legislation . The American Civil War, fought between 1861 and 1865, stemmed from growing tensions between

25012-452: The term here, "discrimination" simply means differential treatment of in-state and out-of-state economic interests that benefits the former and burdens the latter. The party challenging the validity of a state statute or municipal ordinance bears the burden of showing that it discriminates against, or places some burden on, interstate commerce. Hughes v. Oklahoma , 441 U.S. 322, 336, 99 S.Ct. 1727, 1736, 60 L.Ed.2d 250 (1979). If discrimination

25181-586: The transportation of freight, and whose only earnings arise from tolls charged for such use, are authorized to add the tax hereby imposed to said tolls and collect the same therewith , but in no case shall tax be twice charged on the same freight carried on or over the same line of improvements: Provided , That every company now or hereafter incorporated by this Commonwealth, whose line extends into any other State, and every corporation, company, or individual of any other State, holding and enjoying any franchises, property, or privileges whatever in this State, by virtue of

25350-598: The very southern portions of the state have tornado sirens to warn residents of approaching tornadoes. Farther north, in Central Michigan, Northern Michigan, and the Upper Peninsula, tornadoes are rare. The geological formation of the state is greatly varied, with the Michigan Basin being the most major formation. Primary boulders are found over the entire surface of the Upper Peninsula (being principally of primitive origin), while Secondary deposits cover

25519-493: The waste to the disposal site designated by the town. The ordinance had the following features: Waste hauling in the Town of Clarkstown was accomplished by private haulers, subject to local regulation. The scheme had the following aspects: The Town of Clarkstown's ordinance was designed and written right in the teeth of the long line of Supreme Court cases which had historically struck down local processing requirements. In short, it

25688-512: The west, capped around by the Canadian province of Ontario to the north and east. The heavily forested Upper Peninsula is relatively mountainous in the west. The Porcupine Mountains , which are part of one of the oldest mountain chains in the world, rise to an altitude of almost 2,000 feet (610 m) above sea level and form the watershed between the streams flowing into Lake Superior and Lake Michigan. The surface on either side of this range

25857-445: The western part of the Upper Peninsula as a concession and formally entered the Union as a free state on January 26, 1837. The Upper Peninsula proved to be a rich source of lumber, iron, and copper. Michigan led the nation in lumber production from the 1850s to the 1880s. Railroads became a major engine of growth from the 1850s onward, with Detroit the chief hub . A second wave of French-Canadian immigrants settled in Michigan during

26026-432: The winter through the middle of February, the state is frequently subjected to heavy lake-effect snow . The state averages from 30 to 40 inches (76 to 102 cm) of precipitation annually; however, some areas in the northern lower peninsula and the upper peninsula average almost 160 inches (4,100 mm) of snowfall per year. Michigan's highest recorded temperature is 112 °F (44 °C) at Mio on July 13, 1936, and

26195-462: The year the stamp was first issued. A constitutional convention of assent was held to lead the territory to statehood. In October 1835 the people approved the constitution of 1835, thereby forming a state government. Congressional recognition was delayed pending resolution of a boundary dispute with Ohio known as the Toledo War . Congress awarded the "Toledo Strip" to Ohio. Michigan received

26364-549: Was an important center of industry-wide union organizing, such as the rise of the United Auto Workers . In 1920 WWJ (AM) in Detroit became the first radio station in the United States to regularly broadcast commercial programs. Throughout that decade, some of the country's largest and most ornate skyscrapers were built in the city. Particularly noteworthy are the Fisher Building , Cadillac Place , and

26533-536: Was argued that who share these infrastructures should share the costs of its usage and maintenance. Ultimately, the Supreme Court of Pennsylvania ruled that the Commonwealth of Pennsylvania had the legislative power to impose taxes to upkeep its infrastructure. Reading Railroad Co. appealed to the U.S. Supreme Court after losing in the Pennsylvania Supreme Court. During the December 1872 term,

26702-488: Was as if the authors of the ordinance had gone to a treatise on the commerce clause and intentionally chosen a device which had been traditionally prohibited. A long line of Supreme Court case law had struck down local processing requirements when applied to goods or services in interstate commerce. As the Court in Carbone wrote: We consider a so-called flow control ordinance, which requires all solid waste to be processed at

26871-583: Was consistent with his rulings in previous cases and he believed that such rulings were not argued in higher courts. He also noted that then Attorney-General of Pennsylvania, W.M. Meredith, agreed with his decision. Despite Judge Pearson's ruling, a writ of error was filed to the Supreme Court of Pennsylvania by the Commonwealth of Pennsylvania. They argued that the jury had been misled into ruling in favor of Reading Railroad Co. The Court of Common Pleas acknowledged that in cases of doubt, they believed

27040-583: Was discussed even before adoption of the Constitution. On September 15, 1787, the Framers of the Constitution debated in Philadelphia whether to guarantee states the ability to lay duties of tonnage without Congressional interference so that the states could finance the clearing of harbors and the building of lighthouses . James Madison believed that the mere existence of the Commerce Clause would bar states from imposing any duty of tonnage: "[Madison]

27209-754: Was established to provide additional revenue for the Commonwealth of Pennsylvania after the American Civil War . It imposed systematic taxes on transportation companies, based on freight weight, for municipal purposes. All freight transported within Pennsylvania was subject to this tax. Reading Railroad Co. argued that the tax burdened its ability to operate within the state of Pennsylvania, and thus interfered with interstate commerce. They contended that railroad companies operating across state lines were discriminated against by being taxed heavier than local businesses for goods transported through Pennsylvania but delivered to other states. The Supreme Court ruled that

27378-418: Was formed in 1805, but some of the northern border with Canada was not agreed upon until after the War of 1812 . Michigan was admitted into the Union in 1837 as the 26th state, a free one . It soon became an important center of industry and trade in the Great Lakes region, attracting immigrants in the late 19th and early 20th centuries from many European countries . Immigrants from Finland , Macedonia , and

27547-438: Was founded in 1668 on the site where Père Jacques Marquette established Sault Ste. Marie, Michigan , as a base for Catholic missions. Missionaries in 1671–75 founded outlying stations at Saint Ignace and Marquette . Jesuit missionaries were well received by the area's Indian populations, with few difficulties or hostilities. In 1679, Robert Cavelier, Sieur de la Salle built Fort Miami at present-day St. Joseph . In 1691,

27716-577: Was founded in 1849, for the training of teachers. It was the fourth oldest normal school in the United States and the first U.S. normal school outside New England . In 1899, the Michigan State Normal School became the first normal school in the nation to offer a four-year curriculum. Michigan Agricultural College (1855), now Michigan State University in East Lansing , was founded as the first agricultural college in

27885-493: Was included in a plan to raise revenue for the Commonwealth after the Civil War. The companies affected by this tax included railroad, steamboat, canal, and slackwater navigation companies. These companies were specifically taxed because they were involved in the state's main industry. The companies would receive a tax that varied in price depending on the weight and product type of their freight. For every ton of freight carried by mines, quarries, and clay beds, companies would pay

28054-443: Was intended to create a situation where foreign nations would compete against each other to gain access to American markets, ultimately establishing a free market. Economic theories have emerged around the principles of the free market. The free market aims to enhance consumer opportunities by allowing unrestricted trade, offering consumers the widest possible range of goods and services. In this system, Pareto efficiency illustrates

28223-415: Was made manifest in the two Railway Express cases. In the first, a tax imposed by the state of Virginia on American business concerns operating within the state was struck down because it was a business privilege tax imposed on the privilege of doing business in interstate commerce. But then, in the second, Virginia revised the wording of its statute to impose a "franchise tax" on "intangible property" in

28392-431: Was more and more convinced that the regulation of Commerce was in its nature indivisible and ought to be wholly under one authority." Roger Sherman disagreed: "The power of the United States to regulate trade being supreme can control interferences of the State regulations when such interferences happen; so that there is no danger to be apprehended from a concurrent jurisdiction." Sherman saw the commerce power as similar to

28561-501: Was the third-largest city in Quebec province. During the American Revolutionary War , Detroit was an important British supply center. Most of the inhabitants were French-Canadians or American Indians, many of whom had been allied with the French because of long trading ties. Because of imprecise cartography and unclear language defining the boundaries in the 1783 Treaty of Paris , the British retained control of Detroit and Michigan after

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