Aero Mayflower Transit Co. v. Board of Railroad Commissioners

Background

A Kentucky trucking company based in Indianapolis moves household goods and office furniture exclusively in interstate commerce. Montana’s Motor Carriers Act required a $10 per-vehicle fee when a permit is issued and annually, and a quarterly 0.5% gross operating revenue fee with a $15 per-vehicle minimum for class C carriers. The carrier stopped paying the $10 fee and the $15 minimum. Montana revoked its permit and sued to stop the carrier from operating. The Montana Supreme Court held both sections apply to interstate operations and treated the gross-revenue measure as revenue from Montana operations, and upheld both taxes; the U.S. Supreme Court accepted those state-court constructions.

Reasoning

The Court considered whether these levies violate the Constitution’s commerce clause. It treated the two charges effectively as flat fees of $10 and $15 per vehicle, both declared to be “in consideration of the use of the highways.” The Court relied on prior decisions that allow fair, nondiscriminatory taxes on carriers as compensation for highway use. It said the fact that proceeds go to the state general fund does not invalidate a fee plainly imposed for highway use. The Court found the amounts reasonable, noted the combined charge was smaller than amounts previously upheld, and affirmed the Montana Supreme Court’s judgment.

Real world impact

Interstate trucking companies operating in Montana must pay the assessed per-vehicle fees for use of state highways. States may impose similar nondiscriminatory highway-use charges and need not earmark the proceeds exclusively for road maintenance. The Court limited review of any larger gross-revenue calculations to circumstances not present here.