Bacchus Imports, LTD., et al. v. Dias, Director of Taxation of Hawaii, et al. (468 U.S. 263)

U.S. Supreme Court · decided June 29, 1984 · Supreme Court Database (Spaeth)

Citation
468 U.S. 263 · 104 S. Ct. 3049
Decided
June 29, 1984
Term
October Term 1983
Vote
5–3
Majority author
Justice White
Issue area
Economic Activity
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Conservative
Constitutional ruling
State/territorial law held unconstitutional

Opinion excerpt

Justice White delivered the opinion of the Court. Appellants challenge the constitutionality of the Hawaii liquor tax, which is a 20% excise tax imposed on sales of liquor at wholesale. Specifically at issue are exemptions from the tax for certain locally produced alcoholic beverages. The Supreme Court of Hawaii upheld the tax against challenges based upon the Equal Protection Clause, the Import-Export Clause, and the Commerce Clause. In re Bacchus Imports, Ltd., 65 Haw. 566, 656 P. 2d 724 (1982). We noted probable jurisdiction sub nom. Bacchus Imports, Ltd. v. Freitas, 462 U. S. 1130 (1983), and now reverse. I — I The Hawaii liquor tax was originally enacted in 1939 to defray the costs of police and other governmental services that the Hawaii Legislature concluded had been increased due to the consumption of liquor. At its inception the statute contained no exemptions. However, because the legislature sought to encourage development of the Hawaiian liquor industry, it enacted an exemption for okolehao from May 17, 1971, until June 20, 1981, and an exemption for fruit wine from May 17, 1976, until June 30, 1981. Haw. Rev. Stat. §§244-4(6), (7) (Supp. 1983). Okolehao is a brandy distilled from the root of the ti plant, an indigenous shrub of Hawaii. In re Bacchus Imports, Ltd., supra, at 569, n. 7, 656 P. 2d, at 727, n. 7. The only fruit wine manufactured in Hawaii during the…

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