Aloha Airlines, Inc. v. Director of Taxation of Hawaii (464 U.S. 7)

U.S. Supreme Court · decided November 1, 1983 · Supreme Court Database (Spaeth)

Citation
464 U.S. 7 · 104 S. Ct. 291
Decided
November 1, 1983
Term
October Term 1983
Vote
9–0
Majority author
Justice Marshall
Issue area
Federalism
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Liberal

Opinion excerpt

Justice Marshall delivered the opinion of the Court. These appeals present the question whether 49 U. S. C. § 1513(a) pre-empts a Hawaii statute that imposes a tax on the gross income of airlines operating within the State. We conclude that the Hawaii tax is pre-empted. In 1970, Congress committed the Federal Government to assisting States and localities in expanding and improving the Nation’s air transportation system. See Airport and Airway Development Act of 1970, Pub. L. 91 — 258, 84 Stat. 219. In the same session, Congress established the Airport and Airway Trust Fund to funnel federal resources to local airport expansion and improvement projects. See Airport and Airway Revenue Act of 1970, Pub. L. 91-258, § 208, 84 Stat. 250. As originally devised, the Trust Fund received its revenues from several federal aviation taxes, including an 8% tax on domestic airline tickets, a $3 head tax on international flights out of the United States, and a 5% tax on air freight. See §§203, 204, 84 Stat. 238, 240 (codified, as amended, at 26 U. S. C. §§4261, 4271 (1976 ed. and Supp. V)). See generally Massachusetts v. United States, 435 U. S. 444 (1978). Once the Airport and Airway Development Act was passed and the Trust Fund established, the question arose whether States and municipalities were still free to impose additional taxes on airlines and air travelers. In…

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