United States Supreme Court Cases & Opinions

U.S. Supreme Court

Sonneborn Brothers v. Cureton, 262 U.S. 506 (1923)

Sonneborn Brothers v. Cureton

No. 20

Argued March 24, 1922

Restored to docket for reargument May 29, 1922

Reargued October 5, 1922

Decided June 11, 1923

262 U.S. 506

Syllabus

1. A state occupation tax, levied on all wholesale dealers in oil and measured by a percent of the gross amount of their respective sales made within the state, is not invalid as a burden on interstate commerce when applied to local sales in the original packages of oil previously shipped into the state and stored by the dealer as part of his stock in trade. P. 262 U. S. 508.

2. As regards immunity from state taxation, the distinction between imports and articles in original packages in interstate commerce is that, in the one case, the immunity attaches to the import itself before sale, while, in the other, it depends on whether the tax regulates or burdens interstate commerce. P. 262 U. S. 509.

Woodrufl v. Parham, 8 Wall. 123, followed. Standard Oil Co. v. Graves, 249 U. S. 389; Ascren v. Continental Oil Co., 252 U. S. 444; Bowman v. Continental Oil Co., 256 U. S. 642, and Texas Co. v. Brown, 258 U. S. 466, qualified.

Affirmed.

Appeal from a decree of the district court dismissing, on final hearing, the appellants' bill, which sought to enjoin the enforcement of penalties for failure to make reports of sales of oil and for failure to pay a state tax in respect

Page 262 U. S. 507

of oil sold in the packages in which it had been originally shipped into the state.