American Bank & Trust Co. et al. v. Dallas County et al. (463 U.S. 855)
U.S. Supreme Court · decided July 5, 1983 · Supreme Court Database (Spaeth)
- Citation
- 463 U.S. 855 · 103 S. Ct. 3369
- Decided
- July 5, 1983
- Term
- October Term 1982
- Vote
- 6–2
- Majority author
- Justice Blackmun
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Justice Blackmun delivered the opinion of the Court. The question presented is whether a Texas property tax on bank shares, computed on the basis of the bank’s net assets without any deduction for tax-exempt United States obligations held by the bank, violates Rev. Stat. § 3701, as amended. The Texas Court of Civil Appeals ruled that it did not. I Until 1959, Rev. Stat. §3701, 31 U. S. C. §742, provided, in pertinent part, that “[a]ll stocks, bonds, Treasury notes, and other obligations of the United States, shall be exempt from taxation by or under State or municipal or local authority.” This Court consistently held that this language prohibited state taxes imposed on federal obligations, either directly, or indirectly as part of a tax on the taxpayer’s total property or assets. See Society for Savings v. Bowers, 349 U. S. 143, 147-148 (1955). The Court also consistently held, however, that § 3701 did not prohibit nondiscriminatory taxes imposed on discrete property interests such as corporate shares or business franchises, even though the value of that discrete interest was measured by the underlying assets, including United States obligations. See Werner Machine Co. v. Director of Taxation, 350 U. S. 492, 493-494 (1956); Society for Savings v. Bowers, 349 U. S., at 147-148; Des Moines National Bank v. Fairweather, 263 U. S. 103, 112 (1923); Home Savings Bank v. Des Moines,…
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