American Trucking Associations, Inc. v. Scheiner (1986)
- Docket
- 86-357
- Decided
- 1986-01-01
Summary
Question: Do flat state taxes on the use of a state's highways run afoul of the Commerce Clause by discriminating against interstate commerce? Conclusion: Yes. In a 5-to-4 decision, the Court held that the flat taxes violated the basic principle that the Commerce Clause created an area of trade free from interference by the states. One problem with the flat taxes is that they do not pass the "internal consistency" test, which is to say that they could not be applied by every state without interfering with free trade. If many states adopted them, truckers would pay more to go through those states than to drive the same distance in only one state. This would disrupt the market for interstate transportation services. In addition, because the cost to out-of-state truckers is approximately five times as heavy per mile, the taxes have a discriminatory effect. It is no defense that Pennsylvania's registration fee is fairly high, conferring a competitive advantage to trucks based in other states; the solution to that problem is to lower the level of the registration fee. It is also no defense to describe the flat taxes as user fees because such fees are acceptable only insofar as they are neither discriminatory nor excessive. Finally, Pennsylvania cannot appeal to administrative convenience because it has shown itself capable of administering taxes that reflect the quantity of highway use.