bacchus imports dias argued january decided june hawaii imposes excise tax sales liquor wholesale encourage development hawaiian liquor industry okolehao brandy distilled root indigenous shrub hawaii fruit wine manufactured state exempted tax appellant liquor wholesalers sell retailers wholesale price plus tax brought action hawaii tax appeal seeking refund taxes paid protest alleging tax unconstitutional violates inter alia commerce clause rejected constitutional claim hawaii affirmed holding tax illegally discriminate interstate commerce incidence tax wholesalers ultimate burden borne consumers hawaii held appellants standing challenge tax although may pass tax customers liable must return state whether customers pay bills moreover even tax passed increases price compared exempted beverages appellants entitled litigate whether tax adverse competitive impact business tax exemption okolehao fruit wine violates commerce clause purpose effect discriminating favor local products pp neither fact sales exempted beverages constitute small part total liquor sales hawaii fact exempted beverages present competitive threat liquors dispositive question whether competition exists exempt beverages foreign beverages goes extent competition facts said competition exists pp long competition exempt beverages nonexempt products outside state discriminatory effect commerce clause limits manner state may legitimately compete interstate trade process competition state may discriminatorily tax products manufactured state properly concluded improper discrimination interstate commerce merely burden tax borne consumers hawaii propriety economic protectionism hinge upon characterizing industry question thriving struggling irrelevant commerce clause inquiry legislature motivation desire aid makers locally produced beverages rather harm producers pp tax exemption saved amendment exemption violates central tenet commerce clause supported clear concern amendment combating evils unrestricted traffic liquor central purpose amendment empower favor local liquor industry erecting barriers competition pp address issues whether despite unconstitutionality tax appellants entitled tax refunds economic burden tax passed customers issues addressed state courts federal constitutional issues may intertwined issues state law resolution issues may necessitate record far made pp white delivered opinion burger marshall blackmun powell joined stevens filed dissenting opinion rehnquist joined post brennan took part consideration decision case frank easterbrook argued cause appellants briefs allan haley reece bader robert freitas james hughes bruce bigelow eric yamamoto filed brief foremost mckesson appellee rule support appellants william david dexter special assistant attorney general hawaii argued cause appellee dias brief tany hong attorney general bruce honda deputy attorney general kevin wakayama special assistant attorney general briefs amici curiae urging reversal filed distilled spirits council richard stair harrell russell shannon lawrence gotlieb wine institute arnold lerman daniel marcus ronald greene eugene corrigan filed brief multistate tax commission amicus curiae urging affirmance justice white delivered opinion appellants challenge constitutionality hawaii liquor tax excise tax imposed sales liquor wholesale specifically issue exemptions tax certain locally produced alcoholic beverages hawaii upheld tax challenges based upon equal protection clause clause commerce clause bacchus imports haw noted probable jurisdiction sub nom bacchus imports freitas reverse hawaii liquor tax originally enacted defray costs police governmental services hawaii legislature concluded increased due consumption liquor inception statute contained exemptions however legislature sought encourage development hawaiian liquor industry enacted exemption okolehao may june exemption fruit wine may june haw rev stat supp okolehao brandy distilled root ti plant indigenous shrub hawaii bacchus imports supra fruit wine manufactured hawaii relevant time pineapple wine locally produced sake fruit liqueurs exempted tax appellants bacchus imports eagle distributors liquor wholesalers sell licensed retailers sell liquor wholesale price plus excise tax imposed plus percent tax imposed haw rev stat supp pursuant haw rev stat supp authorizes taxpayer pay taxes protest commence action tax appeal recovery disputed sums wholesalers initiated protest proceedings sought refunds taxes paid complaint alleged hawaii liquor tax unconstitutional violates clause commerce clause constitution wholesalers sought refund approximately million representing liquor tax paid years question tax appeal rejected constitutional claims appeal hawaii affirmed decision tax appeal rejected equal protection challenge well held exemption rationally related state legitimate interest promoting domestic industry therefore violate equal protection clause held violation clause tax imposed local sales uses liquor whether liquor produced abroad sister hawaii moreover found evidence tax applied selectively discourage imports manner inconsistent federal foreign policy substantial indirect effect demand imported liquor ibid turning commerce clause challenge hawaii held tax illegally discriminate interstate commerce incidence tax wholesalers liquor hawaii ultimate burden borne consumers hawaii ii state presents claim made wholesalers standing challenge tax shown economic injury claimed discriminatory tax wholesalers however liable tax although may pass customers attempt must return tax state whether customers pay bills furthermore even tax completely successfully passed increases price products compared exempted beverages wholesalers surely entitled litigate whether discriminatory tax adverse competitive impact business wholesalers plainly standing challenge tax iii cardinal rule commerce clause jurisprudence state consistent commerce clause may impose tax discriminates interstate commerce providing direct commercial advantage local business boston stock exchange state tax quoting northwestern portland cement minnesota despite fact tax exemption issue seems clearly discriminate face interstate commerce bestowing commercial advantage okolehao pineapple wine state argues hawaii held improper discrimination much state argument centers contention okolehao pineapple wine compete products sold wholesalers state relies part statistics showing years question sales okolehao pineapple wine constituted well one percent total liquor sales hawaii also relies statement hawaii believe safely assume products pose competitive threat liquors produced elsewhere consumed hawaii bacchus imports well comment good reason believe neither okolehao pineapple wine produced elsewhere however neither small volume sales exempted liquor fact exempted liquors constitute present competitive threat liquors dispositive question whether competition exists locally produced beverages foreign beverages instead go extent competition well settled need know unequal tax concluding unconstitutionally discriminates maryland louisiana state position competition belied purported justification exemption first place legislature originally exempted locally produced beverages order foster local industries encouraging increased consumption product surely one way tax exemption might produce result drinkers alcoholic beverages might give consume less customary drinks favor exempted products price differential exemption permit similarly nondrinkers maturing young might attracted low prices okolehao pineapple wine stipulated facts case unwilling conclude competition exists exempted nonexempted liquors state contends flexible approach taking account practical effect relative burden commerce must employed case legitimate state objectives credibly advanced patent discrimination interstate trade effect interstate commerce incidental see philadelphia new jersey hand acknowledges simple economic protectionism effected state legislation stricter rule invalidity erected ibid see also minnesota clover leaf creamery lewis bt investment managers finding state legislation constitutes economic protectionism may made basis either discriminatory purpose see hunt washington apple advertising discriminatory effect see philadelphia new jersey supra see also minnesota clover leaf creamery supra examination state purpose case sufficient demonstrate state lack entitlement flexible approach permitting inquiry balance local benefits burden interstate commerce see pike bruce church hawaii described legislature motivation enacting exemptions follows legislature reason exempting ti root okolehao alcohol tax encourage promote establishment new industry sen stand comm senate journal exemption fruit wine manufactured state products grown state intended help stimulating local fruit wine industry sen stand comm senate journal bacchus imports supra one disputes state may enact laws pursuant police powers purpose effect encouraging domestic industry however commerce clause stands limitation means state constitutionally seek achieve goal one fundamental purposes clause insure discriminating state legislation welton missouri welton struck missouri statute discriminat ed favor goods wares merchandise growth product manufacture state growth product manufacture countries similarly walling michigan struck law imposing tax sale alcoholic beverages produced outside state declaring discriminating tax imposed state operating disadvantage products introduced first mentioned state effect regulation restraint commerce among usurpation power conferred constitution upon congress recently boston stock exchange state tax struck new york law imposed higher tax transfers stock occurring outside state transfers involving sale within state observed competition among share interstate commerce central element policy held state may tax interstate transactions order favor local businesses businesses thus commerce clause limits manner may legitimately compete interstate trade process competition state may discriminatorily tax products manufactured business operations performed state therefore apparent hawaii erred concluding improper discrimination interstate commerce merely burden tax borne consumers hawaii state attempts put aside cases invalidated discriminatory state statutes enacted protectionist purposes see minnesota clover leaf creamery supra lewis bt investment managers supra state distinguish cases involved attempts enhance thriving substantial business enterprises expense foreign competitors brief appellee dias hawaii attempt hand subsidize nonexistent pineapple wine financially troubled okolehao liquor industries peculiar hawaii however perceive principle commerce clause jurisprudence supporting distinction thriving struggling enterprises circumstances state cites authority proposed distinction either event legislation constitutes economic protectionism every sense phrase long law may build domestic commerce means unequal oppressive burdens upon industry business guy baltimore otherwise trade business country mercy local regulations object secure exclusive benefits citizens products particular prohibit multiplication preferential trade areas commerce clause adopted dean milk madison consequently propriety economic protectionism may allowed hinge upon state characterization industry either thriving struggling also find unpersuasive state contention discriminatory intent part legislature exemptions question enacted discriminate foreign products rather promote local industry brief appellee dias accept justification little occasion ever find statute unconstitutionally discriminatory virtually every discriminatory statute allocates benefits burdens unequally viewed conferring benefit one party detriment either absolute relative sense determination constitutionality depend upon whether one focuses upon benefited burdened party discrimination claim nature requires comparison two classifications always said intent impose burden one party rather intent confer benefit consequently irrelevant commerce clause inquiry motivation legislature desire aid makers locally produced beverage rather harm producers therefore conclude hawaii liquor tax exemption okolehao pineapple wine violated commerce clause purpose effect discriminating favor local products iv state argues even tax exemption violates ordinary commerce clause principles saved amendment constitution section amendment provides transportation importation state territory possession delivery use therein intoxicating liquors violation laws thereof hereby prohibited despite broad language opinions written shortly ratification amendment recently recognized obscurity legislative history see california retail liquor dealers assn midcal aluminum clear consensus concerning meaning provision apparent indeed senator blaine senate sponsor amendment resolution appears espoused varying interpretations reporting view senate judiciary committee said purpose restore absolute control effect interstate commerce affecting intoxicating liquors cong rec hand also expressed narrower view assure dry importation intoxicating liquor proposed write permanently constitution prohibition along line clear amendment entirely remove state regulation alcoholic beverages ambit commerce clause example hostetter idlewild bon voyage liquor stated draw conclusion amendment somehow operated repeal commerce clause wherever regulation intoxicating liquors concerned however absurd oversimplification approaching case light convinced hawaii discriminatory tax stand doubts scope amendment authorization notwithstanding one thing certain central purpose provision empower favor local liquor industries erecting barriers competition also beyond doubt commerce clause furthers strong federal interests preventing economic balkanization timber development wunnicke hughes oklahoma baldwin seelig state laws constitute mere economic protectionism therefore entitled deference laws enacted combat perceived evils unrestricted traffic liquor state seek justify tax ground designed promote temperance carry purpose amendment instead acknowledges purpose promote local industry brief appellee dias consequently tax violates central tenet commerce clause supported clear concern amendment reject state belated claim based amendment state contends even challenged tax adjudged unconstitutionally discriminatory collected wholesalers long exemptions local products force wholesalers entitled refunds since bear economic incidence tax passed separate addition price customers legally obligated pay within certain time relying jefferson electric mfg case involving interpretation federal tax refund statute state asserts parties bearing economic incidence tax constitutionally entitled refund illegal tax asserts wholesalers least arguably even bear legal obligation tax shown competitive injury alleged discrimination wholesalers assert hand liable pay tax whether customers paid bills time tax illegally discriminatory commerce clause requires taxes collected refunded position also discrimination worked competitive injury business entitles refund refund issues essentially issues remedy imposition tax unconstitutionally discriminated interstate commerce addressed state courts also federal constitutional issues involved may well intertwined consideration obviated issues state law also resolution issues required may necessitate record far made case reluctant therefore address first instance accordingly reverse judgment hawaii remand proceedings inconsistent opinion ordered footnotes two taxpayers paradise beverages appellants consolidated suit hawaii appeal thus appellees pursuant rule sake clarity appellants appellee wholesalers referred collectively wholesalers bacchus imports first wholesalers protest assessment sent letter dated may protesting payment taxes period december may appellee paradise beverages protested july period june july appellant eagle distributors protested august taxes paid august july september appellee protested taxes paid august august bacchus imports haw article cl constitution provides part state shall without consent congress lay imposts duties imports exports article cl constitution provides part congress shall power regulate commerce foreign nations among several eagle distributors sought refund app bacchus sought sought million paradise sought record state also us avoid merits holding exemptions severable invalidate entire tax argument presented hawaii proceed basis furthermore challenged exemptions expired severance relieve harm inflicted time wholesalers imported products taxed locally produced products state seriously defend hawaii conclusion discrimination taxpayers commerce clause violation cases make clear discrimination goods offensive commerce clause discrimination taxpayers compare darnell son memphis maryland louisiana percentage exempted liquor sales steadily increased total liquor sales app brief appellee dias hawaii assumption okolehao pineapple wine pose competitive threat constitute finding competition whatsoever locally produced products products understand state argue disposition commerce clause issue need address wholesalers arguments based upon equal protection clause clause note state expressly disclaimed reliance upon amendment cite motion dismiss affirm apparently prepared brief merits became clear state amendment saves challenged tax see brief appellee dias example state board equalization young market stated plaintiffs ask us limit broad command request us construe amendment saying effect state may prohibit importation intoxicating liquors provided prohibits manufacture sale within borders permits manufacture sale must let imported liquors compete domestic equal terms say involve construction amendment rewriting see also mahoney joseph triner since adoption amendment equal protection clause applicable imported intoxicating liquor cf craig boren may example given unconstitutional discrimination full refund mandated state law justice stevens justice rehnquist justice join dissenting four wholesalers alcoholic beverages filed separate complaints challenging constitutionality hawaii liquor tax pursuant exception since expired tax imposed okolehao pineapple wine certain tax years although one actually sells okolehao pineapple wine apparently four entitled engage wholesale sale beverages well various alcoholic beverages sell tax challenge excise tax amounting percent wholesale price presumably economic burden tax passed wholesalers customers today holds wholesalers entitled litigate whether discriminatory tax adverse competitive impact business ante skeptical ability wholesalers prove exemption okolehao pineapple wine harmed businesses partly customers reimbursed excise tax partly free take advantage benefit exemption selling exempted products even minimal harm proved even skeptical possibility result refund wholesalers claiming skepticism concerning economics wholesalers position however basis dissent affirm judgment hawaii wholesalers commerce clause claim squarely foreclosed amendment constitution outset critical importance proper understanding significance amendment litigation note issues case raise first claim hawaii tax inconsistent exercise power art cl constitution confers upon congress regulate commerce among several extent amendment may may placed limits ability congress regulate commerce alcoholic beverages simply issue case hence issue concerning continuing applicability previously enacted federal statutes affecting liquor industry purposes analysis may assume arguendo amendment left power congress entirely unimpaired moreover claim hawaii tax impaired interstate commerce merely passes state destined terminate federal enclave within state claim due process violation claim discrimination among persons opposed goods claim effect liquor prices outside state tax applied sale liquor local market presumably consumed hawaii thus falls squarely within protection given hawaii second section amendment expressly mentions delivery use therein ii prior adoption constitutional amendments concerning intoxicating liquors long history special state federal legislation respecting intoxicating liquors resulting litigation challenging legislation commerce clause commerce clause effectively prevented unilaterally banning local sale intoxicating liquors state leisy hardin congress acting pursuant plenary power commerce clause essentially conferred authority upheld exercise congressional power clark distilling western maryland eighteenth amendment ratified prohibited manufacture sale transportation intoxicating liquors beverage purposes expressly conferred concurrent power enforce prohibition congress several section amendment ratified repealed eighteenth amendment however constitutional authority regulate commerce intoxicating liquors revert status prior adoption constitutional amendments amendment expressly provides transportation importation state territory possession delivery use therein intoxicating liquors violation laws thereof hereby prohibited iii today essence holds hawaii tax unconstitutional places burden intoxicating liquors imported hawaii use therein imposed liquors produced locally read text amendment expressly authorizes sort burden moreover read justice brandeis opinion seminal case state board equalization young market supra squarely decided young market upheld california statute imposed license fee privilege importing beer place california noting statute obviously unconstitutional prior amendment explained amendment enables state establish local monopoly prevent discourage competition imported liquors reasoning clearly covers case merits quotation length amendment prohibited transportation importation intoxicating liquors state violation laws thereof abrogated right import free far concerns intoxicating liquors words used apt confer upon state power forbid importations comply conditions prescribes plaintiffs ask us limit broad command request us construe amendment saying effect state may prohibit importation intoxicating liquors provided prohibits manufacture sale within borders permits manufacture sale must let imported liquors compete domestic equal terms say involve construction amendment rewriting plaintiffs argue despite amendment state may regulate importations except purpose protecting public health safety morals importer license fee imposed end surely state may adopt lesser degree regulation total prohibition doubted state might establish state monopoly manufacture sale beer either prohibit competing importations discourage importation laying heavy impost channelize desired importations confining single consignee compare cases wall vance vandercook basis holding may prohibit limit importation establishes monopoly liquor trade might permit manufacture sale beer prohibiting hard liquors absolutely may permit domestic manufacture beer exclude made without state may instead absolute exclusion subject foreign article heavy importation fee moreover actual decision hostetter predicated squarely principle reflected earlier decision collins yosemite park curry referring collins explained held amendment give california power prevent shipment territory liquor destined distribution consumption national park said traffic involve transportation california delivery use therein within meaning amendment delivery use park distinct sovereignty ruling later characterized holding shipment state transportation importation state within meaning amendment carter virginia hostetter idlewild bon voyage liquor doubt amendment kentucky regulate completely prohibit importation intoxicants intoxicants destined distribution use consumption within borders surely doubt either kentucky plenary power regulate control taxation otherwise distribution use consumption intoxicants within territory imported decide today explicit precise words clause constitution kentucky may lay impost imports abroad decisions confirmed amendment primarily created exception normal operation commerce clause section reserves power impose burdens interstate commerce intoxicating liquor absent amendment clearly invalid commerce clause citation omitted contrary conclusion based obscurity legislative history ante ignores argued young market limitation broad language sanctioned history observing language amendment clear determined unnecessary consider history history today considers unclear according force amendment contention case diminished central purpose provision empower favor local liquor industries erecting barriers competition ante follows according state laws constitute mere economic protectionism entitled deference laws enacted combat perceived evils unrestricted traffic liquor ibid totally novel approach amendment question one deference one central purposes question whether provision case exercise power expressly conferred upon constitution plainly accordingly respectfully dissent two wholesalers bacchus imports eagle distributors appellants two paradise beverages nominally appellees rules see ante filed briefs supporting reversal four parties case hawaiian hawaii noted paradise acknowledges beneficiary exemptions taxation provided hrs okolehao fruit wine produced hawaii nevertheless maintains statute unconstitutional probably volume sales exempted products relatively insubstantial bacchus imports haw recognizes issue whether amendment insulates exemption invalidation commerce clause properly us even though argued add wholesalers specific equal protection clause claim plainly foreclosed amendment well see mahoney joseph triner clause claim wholly lacking merit see department revenue james beam distilling see generally capital cities cable crisp california retail liquor dealers assn midcal aluminum see also heublein south carolina tax commerce clause operates grant power congress limitation power concerning interstate commerce congress power clause however broader limitation inherently imposed hence always recognized state regulation interstate commerce permissible impermissible congress acted cooley board wardens given dual character clause incongruous assume power delegated congress commerce clause unimpaired holding inherent limitation imposed commerce clause removed respect intoxicating liquors amendment see generally department revenue james beam distilling supra carter virginia see generally mississippi tax collins yosemite park curry see generally wisconsin constantineau see generally craig boren see generally seagram sons hostetter compare brewers rodriquez summarily dismissing appeal healy brewers summarily see infra see hill clark distilling western maryland rahrer leisy hardin bowman chicago northwestern walling michigan license cases overruled leisy hardin supra see generally national prohibition cases added like accommodation amendment commerce clause leads like conclusion present case ultimate delivery use new york foreign country state sought regulate control passage intoxicants territory interest preventing unlawful diversion internal commerce state district emphasized case involve measures aimed preventing unlawful diversion use alcoholic beverages within new york rather state sought totally prevent transactions carried aegis law passed congress exercise explicit power constitution regulate commerce foreign nations new york constitutionally approach explicitly rejected young market rejecting argument state may regulate importations except purpose protecting public health safety morals subsequent cases well see seagram sons hostetter othing amendment requires state laws regulating liquor business motivated exclusively desire promote temperance makes constitutionality state legislation depend judicial evaluation motivation legislators regard unsound approach adjudication federal constitutional issues indeed reminiscent long since repudiated era struck assertions congress power regulate commerce ground objective congress regulate commerce rather remedy local problem see generally carter carter coal schechter poultry railroad retirement board alton event analysis must fall weight know ultimate result regulation may immediate objective may encourage growth domestic distilleries ultimate result indeed objective may entirely prohibit imported liquors domestic consumption domestic industry matured suggest however vague balancing central purposes govern ultimate disposition litigation careful thorough analysis actual economic effect tax exemption business taxpayers made serious consideration given refund claim