U.S. Supreme Court
Southern Nat. Gas Corp. v. Alabama, 301 U.S. 148 (1937)
Southern Natural Gas Corp. v. Alabama
Argued March 10, 1937
Decided April 26, 1937
301 U.S. 148
1. A tax on a foreign corporation for the privilege of doing local business, and measured on its property owned in the State, is not invalid because a part of that property is used by it in interstate commerce, there being no direct burden on interstate commerce, and the effect thereon being incidental and remote. P. 301 U. S. 156.
2. An Alabama law imposes on foreign corporations doing business in the State an annual "franchise tax" of $2.00 on each $1,000 of the capital employed in the State. Held consistent with the commerce clause and valid as applied to a Delaware corporation qualified to do business in Alabama and maintaining its commercial domicile there, and whose business consisted in purchasing natural gas in Louisiana and Mississippi gas fields, transporting it through its pipeline system, part of which was in Alabama, and selling it in Alabama and other States. The gas moved continuously from the gas fields under natural pressure to the points of delivery. Of the gas delivered in Alabama, part went to public utility distributors, but the rest was sold for consumption in divers industrial plants, delivery to them being made upon orders, as required, through service lines installed and maintained by the corporation, after it had reduced the pressure of the gas and had metered it. P. 301 U. S. 153.
233 Ala. 81, 170 So. 178, affirmed.
Appeal from a judgment sustaining a tax and reversing the state circuit court, which had held otherwise on an appeal from the assessment. chanroblesvirtualawlibrary