American Trucking Associations, Inc. v. Smith (1988)
- Docket
- 88-325
- Decided
- 1988-01-01
Summary
Question: (1) Does the Court's decision in Scheiner apply retroactively? (2) Even if the Scheiner decision does not apply retroactively, can the state keep taxes collected before the escrow account was established when those taxes are for the tax year July 1, 1987 to June 30, 1988, a period after Scheiner? Conclusion: No and no. A plurality of the Court held that Scheiner did not apply retroactively, and that state collection of taxes for the tax year beginning July 1, 1987, before the establishment of the escrow account, was unconstitutional. Applying the test of non-retroactivity articulated in Chevron Oil v. Huson, 404 U.S. 97 (1971), the Court found that Scheiner clearly established a new principle of law; that the purpose of the Commerce Clause did not support retroactive application; and that equitable considerations weighed heavily against retroactivity. The Court went on to reverse the Arkansas Supreme Court's decision not to refund taxes already collected for the tax year beginning July 1, 1987, reasoning that the conduct to which Scheiner applied prospectively was the use of the highway, not the payment of money therefor. Justice Scalia concurred in the result, but disagreed with the plurality's retroactivity analysis. He found that the only reason to follow Scheiner, which he believed to be wrongly decided, was the doctrine of stare decisis, which only applies prospectively.