Binns v. United States

In Binns v. United States, 194 U.S. 486, 490-94, 24 S. Ct. 816, 48 L. Ed. 1087, 2 Alaska Fed. 291 (1904), the U.S. Supreme Court considered the constitutionality of a congressionally-enacted license tax for the territory of Alaska. The statute, which required certain types of businesses to obtain licenses in order to operate within the territory, provided that the money generated from the fees was to be paid into the U.S. Treasury. Binns, 194 U.S. 486, 487, 24 S. Ct. 816, 48 L. Ed. 1087, 2 Alaska Fed. 291. The U.S. Supreme Court upheld the statute, deeming the license fees as local taxes imposed under the plenary power of Congress over the territories for the purpose of defraying the expense of territorial government. Id. at 491. The Court unequivocally declared: "It must be remembered that Congress, in the government of the territories . . . has plenary power, save as controlled by the provisions of the Constitution; that the form of government it shall establish is not prescribed, and may not necessarily be the same in all the territories." Id.