Graves v. Texas Co.,
298 U.S. 393 (1936)

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U.S. Supreme Court

Graves v. Texas Co., 298 U.S. 393 (1936)

Graves v. Texas Co.

No. 727

Argued April 2, 3, 1936

Decided May 18, 1936

298 U.S. 393


1. A State may not tax sales of gasoline made to the United States. Panhandle Oil Co. v. Mississippi, 277 U. S. 218. P. 298 U. S. 395.

2. The Alabama Act of July 10, 1935, providing that

"Every distributor, refiner, retail dealer or storer of gasoline . . . shall pay an excise tax of six cents per gallon upon the selling, distributing, storing or withdrawing from storage in this State for any use, gasoline . . . ,"

does not tax storing as such; the tax accrues upon withdrawal from storage for "sale or other use," and is measured by the amount withdrawn. P. 298 U. S. 398.

This statute is construed in connection with earlier Acts and in the light of practical construction by state authorities.

3. A tax on storage, or withdrawal from storage, essential to sales of gasoline to the United States, is as objectionable constitutionally as a tax on the sales themselves. P. 298 U. S. 400.

4. In view of requirements of the Alabama laws taxing sales of gasoline, no plain, adequate and complete remedy at law existed in this case, and suit to enjoin collection was proper. P. 298 U. S. 401.

13 F.Supp. 242 affirmed.

Appeal from a decree of the District Court of three judges permanently enjoining Graves, the Governor, and other officials of the Alabama, from collecting taxes on sales of gasoline made by the appellee to the United States.

Page 298 U. S. 395

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