United States v. City of Spokane

The United States brought this action against the City of Spokane (“the City”) and Spokane’s Manager of Finance, Peter Fortin, to preclude the collection of a tax on the gambling proceeds of a local unit of the American National Red Cross, and to recover back taxes, together with interest. The district court granted summary judgment in favor of the United States and the City appealed. We affirm.

BACKGROUND

The American National Red Cross is a unique charitable institution. It was created by the United States to perform such exceedingly important public functions as aiding “the sick and wounded of Armed Forces in time of war,” and carrying on “a system of national and international relief in time of peace” to mitigate “the sufferings caused by pestilence, famine, fire, floods, and other great national calami-ties_” 36 U.S.C. § 3 . Eight of its fifty governors are appointed by the President of the United States and one of those eight acts as the principal officer of the corporation. 36 U.S.C. § 5 (a). While the organization must support itself from public donations and other sources, the United States does supply it with a permanent head quarters building. 36 U.S.C. § 13 . The…