Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-10-05
THE TAX ON MERCHANTS.
no Law Declared Unconstitutional.

charged with violating the State revenue laws
BY conducting business without taxing out
license, as required by the act OF the Assembly
passed last winter, Judge Gulgon decided that
the imposition OF license tax upon general
merchants is not within the power OF the Leg
islature under the present Constitution. Inc
following is the opinion:
The instruction prayed for by the defendants
in this case asks, 10 effect, that the tax Oil
nassed by the last Legislature, so far d; It lm'
noses license tax upon merchants, snail Ce ue'
clared unconstitutional. Ii Is DOT disputed that
the mower of the Legislature to impose taxes Is
unlimited, except IN 50 far as 1t IS expressly, or
hv necessary implication, restrained by the Con-
siitutou: aud it is equally true that no court
will undertake to declare tax law unconstltu
tional unless ii clarely appears that such law is
made in violation or disregard OF such constltu
IionaI restriction. The defendants 10 this case
rely especially upon the 4;h section, article H.
Of The constitution, as showing the intention,
except in certain spec fed cases and classes 10
which the general merchant is not specifically
embraced, 10 conGne taxation to property and
in nroportion to its value. The 4th section
provides that the Legislature may impose tax
npon incomes" land upon the following Il,
censes, viz: the sale oil ardent spirits, theatrical
and circus companies, menagerles, lugfiers,
itinerant pedars, aud other shows and exilol'
lions for which an entrance fee is required.
| Commission merchants, persons selling by sam
| DIes. brokers and pawn-b brokers and all other
business which cannot be reached by the ad
valorem system. The capital V ed in all
business operations shall be ass s>cd cd taxed
| as other property, &c.
There cau scarcely be question upon read
ing this clause, especially ii taken in connection
with the general provisions referred to- that
the trainers of the Constitution intended to
| limit the powers of the Legislature to tax cen.
ses, Its the plain meaning OF the clause, that 10
certain specified cases aud classrs 1t may impose
a license tan; 10 other cases not especially nam-
ed nor in the general classification they may
not impose such tax But it is said that while
it is true thai il appears 90 the face OF TINS
clause that it was Intended TO restrict the lcgls-
lative power to tax licenses, the trainers OF the
constitution did not sufficiently known their
business to do so successfully, and that by the
addition of the words ''all other business which
caunot be reached by the al Valorrm system,
they RENTED to the Legislature the power to
tax all business through the license law. 10
| other wosds, that the constitution intentionally
took from the Legislature certain powers with
one hand aud Internationally returned them
with the other. know Of no lule Of constIu-
| tiona construction which would justify me 10
arriving at such conclusion. 1t would be IN
violation of that canon of construction which
declares that effect is to be given, it possible,
| 10 the whole Instrument, aud so every section
and clause If different portions seem 10 con
| fct. the courts must harmupZe them, it prac-
10 ,,l ipf ouo 1T a car which
| will render every word operative, rather than
one which will make one idle ard Dugatory. -
Cooley ON Const tutions.
Certainly the business of the general mcr-
chaut is not one of the numerous specified pur-
suits on which the Legislature is authorized to
i'm pose license tax. They may impose by ex-
press permission such tax upon commission
merchants, upon sample merchants, aud upon
business of other specified kinds. Why this
omission of the general merchant!
1t could not have been that this, the most
i'm ortant source OF revenue, except the land
tax, amounting to over $500, 900 annually uo-
der the former constitution aud laws, was over
looked or disregarded. knowing the import
ance of this tax, the magnitude Of the revenue
derived from it, and that the trainers of the
constitution were considering what business
should be the subject of license tax. We know
that its omission from among the specifications
must have been Intentional. The reasons why
the excepted pursuits specified in the cOnstitu-
ton are made subjects Of specific tax will read
lily suggest themselves. Some OF them cannot
from their nature be the subject or ad Vaorem
taxation, and the causes which induced the
trainers OF the constitution to permit UNUSUAL
burthens to be placed upon Others are obvious
These reasons do not apply, Dor DO these
causes exist in the case OF the general mer-
chant.
He must necessarily have capital, he must
have stock of goods, he must have credits,
he must have income which could be reached
by the ad valorem system, and there was 90
reason why any exceptional burthen OF taxa
ton should be imposed upon him. These
views lead inevitably to the conclusion that
the general merchant class was Intentionally
excepted from license tax. But it is said that
license tax may be imposed upon the general
merchant under the general clause, "all other
business which cannot be reached by the ad
valorem system" 1t seems to me that suti
cient answer to this suggestion is that the Leg.
isaure has reached him by the ad valorem
system, aud has taxed him under that system
from the adoption OF the constitution down to
the passage Of the last tax bill. 1t may be
that it is easier to collect license tax from
him than an ad valorem tax 1t may be that
such license tax would yield larger revenue
than the ad valorem, but when the question
arises, eau be be reached by the ad valorem
system? have shown not only that he may be,
but that be has been My opinion that this
constitutional interdict prohibits the imposi-
ton of a license tax upon the merchant is
strengthened:
lst. By comparison of the present with the
former constitution. Under the constitution of
1850, the Legislature had unquestioned power
to impose license tax, but were forbidden to
tax the capital when license was required.
The scheme of the present constitution is EVIL
IDENTITY the avoidance of specific taxes and the
substitution Of the ad valorcm system, and 10
order to accomplish this, while it restraints the
legislative power Of license, it commands the
Legislature to tax all capital employed 10 bust
ness as other properly, and permits the taxa.
ton of income as we'll, so that if the arguments
of the counsel for the State are correct, the ad
valorem feature of the constitution is done
away with; the Legislature is compelled to tax