Supreme Court of the United States

Alabama v. King & Boozer, a Partnership

November 10, 1941314 U.S. 1

Summary

The Supreme Court held that the Alabama sales tax imposed on lumber sold to contractors under a cost‑plus contract is a tax on the contractors, not on the United States, and therefore does not violate the constitutional immunity of the United States from state taxation. The Court affirmed that the contractors are the purchasers within the meaning of the Alabama statute and that the economic burden shifting to the government does not render the tax unconstitutional. The judgment of the Alabama Supreme Court was reversed.

Holding

  • Whether the Alabama sales tax, as applied to the transaction, constitutes a tax on the United States in violation of its constitutional immunity from state taxation.. The tax does not violate federal immunity because it is imposed on the contractors, not on the United States.
  • Whether the contractors, rather than the United States, are the “purchaser” within the meaning of the Alabama statute and thus liable for the tax.. The contractors are the purchasers within the meaning of the statute and are therefore liable for the tax.
  • Whether the shifting of the tax burden to the United States through reimbursement makes the tax an unconstitutional tax on the United States.. The shifting of the economic burden to the United States does not convert the tax into a tax on the United States.

Docket 602

Cited authorities

  • 54 Stat. 265

Cited by

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