Show CORPORATION TAX LAW HELD VALID Supreme Court COlli Upholds Legislative Legislative Legislative Legis Legis- Measure for State Revenue MEANS MENS NS A YEAR Blackrock Concerns Concern's Appeal Is Analyzed by Justice Frick In a a sweeping decision declaring valid tho corporation tax levied L by bythe the Uie last le legislature th the tho court yesterday rendered ono one of the most vitali vitally important cases that has beoiT tho this courts In Iii years Tho Tim opinion was waa handed down b by Justice J. J E B. and was waa concurred In by Chief Chic Justice V. w. M. M McCarty and Justice Justice Jus Jus- tice J J. X N. Tho Time suit went to tho time Supreme court courton on appeal from the decision lon of or Jud Judge Judge- M. M 1 L. L Ritchie of or the time Third District ourt Jt It was the case caso of or the time Black Black- I rock Copper Mining Millin Milling Mill Ull In ing company against C. C S. S secretary of state Plate in iii an effort to declan declare de de- de- de clare clan unconstitutional the action of or orthe the time last Jast legislature In Iii levying YIng a n. special corporation tax on all companies In Incorporated Incorporated incorporated In- In within tho time state It It was waa wasa a test case COSe of unusual importance an and as watched with interest h by th the owners of stock in every cery corporation in tho state The opinion of tho timo tho Supreme court courts courtis Is s a sweeping victory for the state aim ami means the payment of approximately approximate Into tile the state stale treasury annually annu ally by corporations This revenue ro will naturally increase year rear b by year car Scale of Ta e The scale b by the time last legislature legisla legisla- turo ture was as follows follows- A tax of or C G for Incorporated companies with a capital capital capi capi- tal tul stock amounting up to 10 no for a capital stock up to 15 11 for or capitalization up UI to 20 O for capitalization up to 75 ii- ii 25 for capitalization up to U 35 for tor c un to 40 41 for capitalization up up to and 50 51 for an any company compan with a a. a capitalization of moro than The case was vas di dismissed by Ju Judge Jc Ritchie and then the company company com com- pany appealed to the tho mo court court attacking the validity a. a ax f do o- o daring claring that that- the the Je legislature exceeded Ib iti power in levying this special tax teu The Tho chief contention i met et un b tho the BlacKrock con pl ns hie act was void old because it Imposed a n ta tax up upon upon upon up- up on property not 1101 In proportion to o its valuation but hut b by simply naming the time amount to be pai paid in gross regardless of the thc thIn thing upon which the time tax was imposed TIme The contention of or the state was that the time ta tax was levied for the right rIg of an any company compan to become a n I corporation in the state anti and that In iii Inthia I thia timis sense the tho company compan was receivIng receiving reedy reedy- ing a franchise to do business In the thu state Soon oon after this measure passed the legislature protests were flied filed with the secretary of state Slate Most Mott of or tho the companies affected paid their special tax but tiled filed a 0 protest with It It- Many Ian Ian- others were allowed to withhold payment pay pay- ment meat of tho tax until the test case was tC J taken en I before Coro the time Supreme court and finally settled Cites Other Oilier Decision Decision- I Justice l Thick cites several decisions of oC other courts bearing hearing upon the thc matter matter mat mat- ter but points out that they aye aro conflicting conflicting con con- meting meting- and do O not wholly govern oo in inthis I this especial case casc In one one- th the opinion says sn'S Tho act net in our opinion Is la valid and we again repeat at what this court has so often declared that when an annet act net or statute Is attacked upon the time ground s that it violates seine somo provision of oC the tIme constitution or 01 In sonic some wa way I h. h repugnant to that instrument it must clearly appear to bo be so or theat tho the thoa a act at t statute must bo be or held v valid Justice Frick then timen declares that ho cannot 6 sustain abstain the c contention that th time the act Is void because became It ft offends against th the lie uniformity or oC the time clause of ot the con constitution which tho the Black rock company claimed was being being- infringed upon hearing bearing upon the tho x k taxation llon of or companies s and und franchises Having determined that th the tax If in not a tax upon ullon tho time property properly within tile tho purview pur of or tho the constitution of this state continues continued the opinion it follow follows fol fol- oh- oh lows low that the time classification the amount of or the time tax and the time manner of or collecting col col- it Is a n matter largely If not entirely within discretion Tho Time Blackrock loel company held that In following the thi law passed b by th time the legislature fixing November NO 15 Hi as Iho thu day for COl tho tIme payment of the time special ape ape- cial tax that those companies which took out papers on November IC 16 for Instance would be ablo able to run rumi for fOI a whole year without the time payment nt of this tax taC On this ihl ground too they attacked e 1 the validity of tho ho act Justice Frick points out In his lila opinion that th time the la is not well weli tali taken en lie cites the time 1 of or property property prop prop- erty orty as an au instance After the tho payment pay pay- ment of taxes fulls fails duo and amid have been ben paid the time of or that thal same piece of ot property 1 Is iI'S effected rae lne o own owner onor nor l' l In this cacti caE j is therefore owner of tho the property for COl an entire year without the the- payment ot or taxes Q thou though h there is nothing done dona to dodge the time payment In conclusion tint tIll opinion reads partly us itS follows From what haa has been heen said wo we hold 1 that tho tIme act In question la Is not clearly repugnant to lo un any constitutional provision 2 that tho ho tax In question la It a a. mere c ta tax lax imposed by the tho state statu upon certain corporations corpora corpora- for the tho private giant to them b by It to be and continue to transact bUdne business as a a. corporation e e a 3 that the manner in which time the tux is Imposed and ana time the amount that each corporation Is Ig required to o pay as ascertained ascertained as as- uJ- uJ and fixed by bo the tIme act is not contrary to any constitutional provision provi provi- lIon sion 4 that the period for Cor or the payment pay pay- ment mont of ot the time tax is fixed and definite 5 that the tho act Is la nut not so ISO uncertain nor unfair in any any ot or its provisions provision that a l court would for that reason be authorized to lo declare rc it Invalid Invalid- |