48 U.S.C. § 741a

Internal-revenue taxes; levy and collection; discrimination

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The internal-revenue taxes levied by the Legislature of Puerto Rico in pursuance of the authority granted by this chapter on articles, goods, wares, or merchandise may be levied and collected as such legislature may direct, on the articles subject to said tax, as soon as the same are manufactured, sold, used, or brought into the island: Provided, That no discrimination be made between the articles imported from the United States or foreign countries and similar articles produced or manufactured in Puerto Rico. The officials of the Customs and Postal Services of the United States are directed to assist the appropriate officials of the Puerto Rican government in the collection of these taxes.

Notes of Decisions
Cited in 12 cases, 1940–2016 · leading case: United Parcel Serv., Inc. v. Flores-Galarza, 318 F.3d 323 (1st Cir. 2003).
United Parcel Serv., Inc. v. Flores-Galarza, 318 F.3d 323 (1st Cir. 2003). · cites it 5× “First, the Secretary notes that Puerto Rico has a special taxing power under Section 3 of the Federal Relations Act, 48 U.S.C. § 741a. According to the Secretary, the FAA Authorization Act cannot be read to limit this unique taxing authority by preempting statutes and…”
Wal-Mart Puerto Rico, Inc. v. Zaragoza-Gomez, 834 F.3d 110 (1st Cir. 2016). · cites it 2× “The district court held that it had jurisdiction over the suit and enjoined the enforcement of the AMT after concluding that the AMT violates the dormant Commerce Clause; the Federal Relations Act, 48 U.S.C. § 741a; and the Equal Protection Clause.”
Wal-Mart Puerto Rico, Inc. v. Zaragoza-Gomez, 174 F. Supp. 3d 585 (D.P.R. 2016). · cites it 4× “) But, what Puerto Rico is currently doing, though easy, is unconstitutional. The Commonwealth may not rely oh such illegal means to fund itself, even when in a pinch.”
United States Brewers Ass'n, Inc. v. Julio Cesar Perez, Etc., 592 F.2d 1212 (1st Cir. 1979). · cites it 4× “Plaintiff-appellants contend that the law was intended to and does protect, via its exemption, two local beer producers, thus curtailing competition with beer produced outside of Puerto Rico in violation of 48 U.S.C. § 741a. That provision prohibits Puerto Rico from…”
Coors Brewing Co. v. Méndez-Torres, 562 F.3d 3 (1st Cir. 2009). “Coors seeks declarations that the exemption is unconstitutional under the Commerce Clause and illegal under the Federal Relations Act, 48 U.S.C. § 741a. Coors also seeks an injunction barring the Secretary “from allowing any taxpayer to pay only the reduced rate of tax…”
United States Brewers Ass'n v. Cesar Perez, 455 F. Supp. 1159 (D.P.R. 1978). · cites it 5× “1418 (1927), 48 U.S.C. § 741a, limits the taxing authority of the Legislature of Puerto Rico by expressly prohibiting discrimination between articles imported from the United States or foreign countries and similar articles produced or manufactured in Puerto Rico.”
Trailer Marine Transp. Corp. v. Carmen M. Rivera Vazquez, Etc., 977 F.2d 1 (1st Cir. 1992). “§ 738 (no duties may be imposed on trade between Puerto Rico and the United States); 48 U.S.C. § 741a (Puerto Rico can tax imported goods but cannot discriminate in favor of goods made in Puerto Rico).”
Coors Brewing Co. v. Mendez-Torres, 678 F.3d 15 (1st Cir. 2012). “The suit attacked the tax differential, sought a declaration that the “Special Exemption” for small brewers violated section three of the Federal Relations Act, 48 U.S.C. § 741a, as well as the dormant Commerce Clause, and requested additional declaratory and injunctive relief…”
San Juan Trading Co. v. Sancho, 114 F.2d 969 (1st Cir. 1940). · cites it 3× “1418 (1927), 48 U.S.C.A. § 741a, that there must be no discrimination between articles imported from the United States or foreign countries and similar articles of domestic origin.”
United Parcel Serv., Inc. v. Flores-Galarza, 210 F. Supp. 2d 33 (D.P.R. 2002). · cites it 2× “The Federal Relations Act Defendant contends that Section 3 of the Puerto Rican Federal Relations Act, 48 U.S.C. § 741a, immunizes the challenged statutes and regulations from preemption.”
Carrier Corp. v. Hon. Julio Cesar Perez, Etc., 677 F.2d 162 (1st Cir. 1982). “48 U.S.C. § 741a, and 3) the Equal Protection and Due Process Clauses of the United States Constitution.”
Venrod Corp. v. Sec'y of the Treasury of Puerto Rico, 704 F. Supp. 21 (D.P.R. 1989). · cites it 2× “In that the case alleges violations of plaintiffs constitutional rights under the due process and equal protection clauses of the fourteenth amendment, and the Commerce Clause of Article I, as well as rights pursuant to 48 U.”
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