United States Supreme Court Cases & Opinions

U.S. Supreme Court

Travis v. Yale & Towne Mfg Co., 252 U.S. 60 (1920)

Travis v. Yale & Towne Manufacturing Company

No. 548

Argued December 15, 16, 1919

Decided March 1, 1920

252 U.S. 60

Syllabus

Shaffer v. Carter, ante 252 U. S. 37, followed, to the effect that a state may tax incomes of nonresidents arising within her borders, and that there is no unconstitutional discrimination against nonresidents in confining the deductions allowed them for expenses, losses, etc., to such as are connected with income so arising while allowing residents, taxed on their income generally, to make such deductions without regard to locality. P. 252 U. S. 75.

Such a tax may be enforced as to nonresidents working within the state by requiring their employers to withhold and pay it from their salaries or wages, and no unconstitutional discrimination against such nonresidents results from omitting such a requirement in the case of residents. P. 252 U. S. 76.

A regulation requiring that the tax be thus withheld is not unreasonable as applied to a sister-state corporation carrying on local business without any contract limiting the regulatory power of the taxing state; nor is the power to impose such a regulation affected by the fact that the corporation may find it more convenient to pay its employees and keep its accounts in the its origin and principal place of business. Id.

The terms "resident" and "citizen" are not synonymous, but a general taxing scheme of a state which discriminates against all nonresidents necessarily includes in the discrimination those who are citizens of other states. P. 252 U. S. 78.

A general tax laid by a state on the incomes of residents and nonresidents, which allows exemptions to the residents, with increases for married persons and for dependents, but allows no equivalent exemptions to nonresidents, operates to abridge the privileges and immunities of citizens of other states in violation of § 2 of Art. IV of the Constitution. P. 252 U. S. 79.

Held that such a discrimination in the income tax law of New York is

Page 252 U. S. 61

not overcome by a provision excluding from the taxable income of nonresident annuities, interest, and dividends not part of income from a local business, or occupation, etc., subject to the tax. P. 252 U. S. 81.

An abridgment by one the privilege and immunities of the citizens of other states cannot be condoned by those states or cured by retaliation. P. 252 U. S. 82.

262 F.5d 6 affirmed.

The case is stated in the opinion.

Page 252 U. S. 72