COMPLETE AUTO TRANSIT INC. v. BRADY

Print this Page
Case Basics
Docket No. 
76-29
Appellee 
Brady
Appellant 
Complete Auto Transit Inc.
Advocates
(Argued the cause for the appellant)
(Argued the cause for the appellee)
Tags
Term:
Facts of the Case 

Complete Auto Transit was a Michigan corporation doing business in Mississippi. Complete shipped cars into the state where they were distributed for sale. Mississippi imposed a tax on transportation companies for the "privilege of doing business" in the state. The tax was applied equally to businesses involved in intra- and interstate commerce.

Question 

Did the Mississippi tax violate the Commerce Clause because it placed a burden on an activity associated with interstate commerce?

Conclusion 
Decision: 9 votes for Brady, 0 vote(s) against
Legal provision: Article 1, Section 8, Paragraph 3: Interstate Commerce Clause

A unanimous Court found the tax valid. Businesses involved in interstate commerce should assume a just share of the state tax burden. The Court's decision established four criteria to be met for a state tax to be valid and not an unreasonable burden on interstate commerce. The tax must be (1) on an activity connected to the state, (2) fairly apportioned to be based on intrastate commerce, (3) nondiscriminatory, and (4) related to state services provided. These criteria are only valid if Congress has not imposed conflicting regulations.

Cite this Page
COMPLETE AUTO TRANSIT INC. v. BRADY. The Oyez Project at IIT Chicago-Kent College of Law. 15 April 2014. <http://www.oyez.org/cases/1970-1979/1976/1976_76_29>.
COMPLETE AUTO TRANSIT INC. v. BRADY, The Oyez Project at IIT Chicago-Kent College of Law, http://www.oyez.org/cases/1970-1979/1976/1976_76_29 (last visited April 15, 2014).
"COMPLETE AUTO TRANSIT INC. v. BRADY," The Oyez Project at IIT Chicago-Kent College of Law, accessed April 15, 2014, http://www.oyez.org/cases/1970-1979/1976/1976_76_29.