Morf v. Bingaman
Headline: State permit and flat fee for cars driven through New Mexico for sale upheld, letting the state inspect caravans and collect fees to police and maintain its highways.
Holding: The Court upheld New Mexico’s special-permit fee for vehicles driven through the state for sale, allowing inspection and reasonable charges to police that caravan-style traffic and rejecting repeal by the later ports-of-entry law.
- Allows states to require and collect flat permit fees from cars moved through for sale.
- Permits safety inspections at ports of entry for these vehicles.
- Affirms separate regulation of caravan-style auto transport across state lines.
Summary
Background
A California car dealer who buys cars in other states drives them over New Mexico highways in long processions, or caravans, to sell in California. New Mexico passed a law requiring a special permit to transport any motor vehicle on its highways for sale, with a $7.50 fee if the car moves under its own power and $5.00 if towed. A later law set up registration stations or “ports of entry,” inspection rules, and a separate mileage tax. The dealer sued to stop enforcement, arguing the fee burdens interstate transport and that the later ports-of-entry law repealed the earlier permit fee.
Reasoning
The Court accepted the trial court’s reading that the permit charge is a fee for the privilege of using the highways, similar to a toll, and not an unconstitutional tax on interstate commerce. The record showed that the caravan-style traffic is a distinct class: many cars are coupled in units of two, driven by casual drivers, and cause extra wear, skidding, stalls, and hazards to other traffic. The Court held a state may inspect and police that special class of traffic and impose a reasonable, non-discriminatory charge to cover the added cost. The flat fee was not shown to be unreasonable, and differing treatment of this traffic did not violate equal protection.
Real world impact
The Court also agreed the later ports-of-entry law did not repeal the original permit fee and may operate alongside the mileage tax. The practical result is that New Mexico can keep inspecting, policing, and charging fees for cars moved through the state for sale, including interstate caravans. The dealer’s challenge was rejected and the lower court’s dismissal was affirmed.
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