Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1872-03-12
MERCHANTS, TAX LAW.
The Supreme Court OF the state
Bustafns ft.

The merchantst tax case, brought !
r. P. jenkins, wholesale druggist Of tn
city, against W. q Ewin, County Cou
| Clerk Of this county, q test the cDnst
nationality offhat portion ofthe revenu
| act of July "a, 1871, which imposes bot
an ad valorem and privilege tax on me
chants, was decided yesterday, in tn
| Supreme Court, Justice Sneed dissen
ing: -
| Chief Justice Nicholson, in deliverin
1.-THE opinion of the court said
1T is principle OF universal const
tutional law, that the power to levy an
collect taxes is an incident Of sovereign
w. The Constitution Of the State doe
not confer upon the Legislature tn
power of taxation--it passes under tn
general designation Of Legislative pow
er. There IS no limitation upon tn
Legislature as to the amount or object
Of taxation, except that found in th'
restrictions and prohibitions Of the con
stitution.
f"Tbat section of the Constitution il
which Is found the clause under which
the tax In question was imposed, frs
lays down, the general. proposition thai
all property, real personal and mixed
shall be taxed, but gives to the Legisla'
ture discretion as to taxing property
belonging to the State by counties, cities
or towns, ETC., and then, by way of re-
striction upon the exercise of the power,
proceeds as follows: Allproperty shall
be. taxed according to its value, that to
be ascertained in such manner as the
Legislature shall direct, so that the taxes
shall be equal and uniform throughout
the State. No one species Of property
from which a tax may be collected shall
be taxed higher than any other species of
property.
"This is an absolute and imperative
inhibition upon the Legislature, requir-
ing them in taxing property to provide
that it be taxed according to value, but
excepting from the inhibition
the manner of ascertaining that value.
This much is left to the discretion of
the Legislature, but this discretion is to
be SO exercised that no one species of
from which tax is collected
shall be taxed higher than any other
species of property of the same value,
So far, the provision is confined ex-
pressly to taxation of property. Then
follows the controverted clause: But
the Legislature shall have power to tax
peddlers and privileges in
such manner asst they may from time to-
time direct Its meaning is
that, although in taxing property the
Legislature is forbidden to tax it except
according to its value, yet as to mer-
chants, peddlers and privileges the Leg
islature IS not to.be restricted. but may
exercise the taxing power without re-
striction, either as 10 the amount or as
to the manner or mode of exercising the
power. . = The words in such
used in this clause, have no
other significance than to, express with
more distinctness and emphasis that the
power of the Legislature to tax mer-
chants, peddlers and privileges was I'M
limited and unrestricted, and might be
exercised in any manner or mode within
their discretion. rfA,'l'lN tll I
ut is true that under the law the mer-
chant pays an ad udlorem tax on the
value OF his merchandise equal to the
tax paid on all other taxable property,
and, in addition to this, he pays license
tax of an equal amount. In this way he |
is required to pay a higher tax than !
others, who are not merchants, having |
an equal amount in value of other prop
erty. But as the Legislature is unre-
stricted 10 its discretion as to the amount
Of tax that may be assessed on mer-
chants as merchants, and as to the man
ner in which it may be assessed, it fol- |
lows that the additional tax is not OBJ
loxious to constitutional objection, un-
ess such additional tax is an ad ealorem
md not q license tax. In the agreed
of facts, it is said that $l20l
vas collected as dd rdLOrem tax on eapi-
al stock, and 1920 as license privi-
eye tax as merchant. AS a matter
4 fact, then the additional tax was not |
assessed on the merchandise of the mer-
liant, but on his occupation as a mer-
liant. = Unreasonable to presume |
hat it was on account of his peculiar
and his power to protect |
himself from unjust taxation by distrib- |
ting the burden among his customers,
hat the trainers of the constitution OF
1874 and 1870 expressly subjected the
to the unrestricted power of
axatIon by the Legislature. 2 sso9l
ME additional taxation imposed on the
Is not on his merchandise. but
M his occppation, and the ad valorem
AK Is only adopted as the manner of
,scertaining the amount of the license
Az and ia authorized by the clause Of
be eonstitution under which the tax is
,nnosad ,pTl
.sWa GA that tho constitution has
Dlooad no restr;ot;on mon d. Iea;sla-
no s H. 10 exerc;ss ~ r. J. rowe, r. tax
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