Air Polynesia, Inc. D/B/A Dhl Cargo v. George Freitas, Director of Taxation, State of Hawaii

Air Polynesia, Inc. sought a preliminary injunction to prevent the State of Hawaii from collecting a public service tax authorized by Hawaii Rev.Stat. § 239-6. It claimed imposition of the tax on its gross receipts from carriage of air freight violated the supremacy, due process, and commerce clauses. The district court held that the Tax Injunction Act, 28 U.S.C. § 1341 , deprived it of subject matter jurisdiction. We affirm.

Air Polynesia provides air freight of property and mail between the Hawaiian Islands. Under Hawaii Rev.Stat. § 239-6, the State assessed a public service tax against the airline in the amount of four percent of its gross revenues. Air Polynesia and other airlines challenged the tax, claiming state taxation of airlines was preempted by 49 U.S.C. § 1513 . Section (a) of that statute provides in part:

Pending resolution of the airlines’ dispute, Air Polynesia did not pay the gross receipts tax for the period 1977-1982. During this period two other inter-island carriers, Aloha Airlines and Hawaiian Airlines, filed state court suits claiming section 239-6 violated the supremacy clause and the commerce clause. The Hawaii Supreme Court rejected their claims that…