CONSTITUTIONAL LAW - TAXATION - THE GERHARDT DECISION AND INTERGOVERNMENTAL TAX IMMUNITY

Recent decisions handed down by the United States Supreme Court this last term have to a large extent fulfilled the anticipations aroused by James v. Dravo Contracting Co. of an enlargement of the governmental powers to impose non-discriminatory taxes. Allen v. Regents of the University System of Georgia held valid the application of a general federal admissions tax to admissions to athletic contests conducted under the auspices of the regents of the University of Georgia, a state university. Helvering v. Mountain Producers Corp. decided that a lessee under an oil and gas lease of state school lands was not entitled to immunity, as a state instrumentality, from federal taxation in respect to income derived from operations under the lease. Helvering v. Gerhardt upheld the imposition of a federal tax (under the general income tax law) on salaries received by employees of the Port of New York Authority, a corporation created as a state agency to construct and operate transportation and terminal facilities in a certain district.