in addressing any state tax challenged on commerce clause grounds, a court must apply the four-prong test set forth in Complete Auto Transit
How later courts described this case
- in addressing any state tax challenged on commerce clause grounds, a court must apply the four-prong test set forth in Complete Auto Transit
- Upholding the constitutionality of Arkansas’ Highway Use Equalization tax
Written by the judges who cited it.
The opinion
Darrell Hickman, Justice, dissenting. This is a test of the Arkansas Highway Department’s answer to the claim that our state’s highways will be damaged because of the increase of the maximum weight limit on trucks to 80,000 pounds. The legislature’s goal was to tax these heavy trucks to make them pay for their share of the damage to our highways. That worthy goal was partly forgotten by the legislators, resulting in a tax which decidedly favors Arkansas-based trucks. Those trucks may do all the damage they want for $175 per year.
The evidence reflected that interstate truckers invariably choose to pay five cents per mile or purchase a trip ticket, rather than pay the annual fee of $ 175 per truck. That is the only sensible choice for interstate truckers who will not use Arkansas Highways extensively. Arkansas-based truckers just as sensibly choose to pay the $175 per truck every year, because there is no mileage limit with that payment. They can drive thirty thousand miles for considerably less than five cents a mile.
Interstate truckers, not based in Arkansas, are paying 370% more than Arkansas-based truckers for the damage done. That is discrimination that violates the commerce clause of the United States Constitution. Discriminatory, parochial legislation such as this interferes with interstate commerce, an exclusive province of the federal government. Boston Stock Exchange v. State Tax Commission, 429 U.S. 318 (1977); City of Philadelphia v. New Jersey, 437 U.S. 617 (1978).
709 S.W.2d 410 Perhaps most important to us in Arkansas is the fact that the tax as delineated does not make those pay who may do the most damage; our own truckers.
The tax must be fairly related to the services provided, in this case decent highways. Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977). A mile-weight tax is probably the most fair and sensible answer to the problem: all truckers, Arkansas-based and interstate, pay equally for the damage to the highways. Not only is that sensible, it is unquestionably fair to the people of this state who have to bear any unpaid costs for damage.
I would find the tax violates the commerce clause of the United States Constitution.