Document: 350 U.S. 492 76 S.Ct. 534 100 L.Ed. 634 WERNER MACHINE COMPANY, Inc., Appellant,v.DIRECTOR OF DIVISION TAXATION, DEPARTMENT THE TREASURY, STATE NEW JERSEY. No. 63. Argued March 5, 6, 1956. Decided 26, Mr. Charles Goodwin, Jr., New York City, for appellant. Harold Kolovsky, Union N.J., appellee. PER CURIAM. 1 The State of Jersey imposes on each domestic corporation 'an annual franchise tax * the privilege having or exercising its corporate franchise' in State.1 This tax, as applied to appellant, is measured by corporation's 'net worth,' which defined sum issued and outstanding capital stock, paid-in surplus, earned surplus undivided profits, other accounts will accrue shareholders (not including depreciation reserves), debts owed owning 10 percent more stock.2 Appellant a organized under laws Jersey, therefore subject tax. In assessing appellant's 1952, Tax Commissioner included net worth value certain federal bonds held thereby increasing amount due $320.07. protested, claiming that R.S. § 3701, 31 U.S.C. 742, U.S.C.A. these were immune from state taxation. courts upheld Commissioner's assessment, this appeal contests validity statute so applied. 2 contends not reality but rather nature direct property obligations. Corporate franchises granted create relationship may legitimately be made taxation, Home Ins. Co. v. York, 134 594, 599—600, 593, 595, 33 1025; Flint Stone Tracy Co., 220 107, 162, 342, 353, 55 389; Educational Films Corp. America Ward, 282 379, 388, 51 170, 171, 75 400; expressly declares Moreover, Supreme Court has, independent examination, found 'a bona fide tax.'3 While is, course, conclusive here, Society Savings City Cleveland, Ohio Bowers, 349 143, 607, 99 950, we find no basis instance accepting court's conclusion imposed directly corporation. Cf. Pacific Johnson, 285 480, 495—496, 52 424, 427, 428, 893. 3 argues further even if it must fall because effect same had been tax-exempt securities. Since remains whatever character assets be, claim can sustained taxing discriminates against And since franchise, valid despite inclusion determination worth. has consistently taxes yardstick includes income property, though part economic impact said bear indirectly upon such property. See, e.g., Coite, 6 Wall. 18 897; Provident Institution Massachusetts, 611, 907; Hamilton 632, 904; supra; supra. We have only recently adhered principle another aspect field See supra, at pages 147 148, 609, 610; Realty Title Division Appeals, 338 665, 70 413, 94 439, appellant relies, distinguishable, did involve whose legal incidence intangible 4 here permissible decision below affirmed. 5 Affirmed. N.J.Laws 1945, c. N.J.S.A. 54: 10A—1 et seq. Id., §§ 54:10A—4(d)(5). Werner Machine Director Taxation, 17 N.J. 121, 125, 110 A.2d 89, 91.

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