The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1903-07-17
CONTESTED LAW DECLARED ON.
LY PARTIALLY INVALID.
OF IMPORTANCE
Supreme Court Rules That Insurance
Companies Must Pay on
Excess Premiums.

1t is the opinion of the supreme
court of the state that the section OF
the civil code which relates to the
taxation of foreign life insurance
companies, is constitutional in part
and unconstitutional in another part.
The part declared constitutional is
the one the companies have been
combating, as it relates to the pay
ment of tax they have been resist
ing.
| The decision was rendered a few
days ago and is Of Importance to ev-
cry county in the state, as it was
handed down in a case brought for
the purpose of testing law that
has to do with the revenues of coun-
ties in which life insurance companies
do business In the action just de-
cided the Northwestern Mutual Life
Insurance company was the plaintiff
and respondent and Lewis and Clarke
county defendant and appellant. 1t
was originally instituted in the dis
trict court of that county in May,
| 1902.
The assessor of Lewis and Clarke
county demanded list of the excess
of premiums, as provided for by law.
The list was given, but under protest,
the agent of the company contending
that his company had complied with
the laws Of Montana relating to for
eign insurance companies, in that it
had paid for and obtained a license
from the state and had secured a certi-
ficate from the auditor of the state in
accordance with the previous acts OF
the legislature.
/ The amount of the tax on the ex-
cess premiums was $313.87 and was
deposited with the clerk of the dis
trict court, under the stipulation that
it was not to be paid to the county,
unless the supreme court rendered
final decision that the company was
liable for the tax. In tine event that
the decision was to the contrary the
money was to be refunded to the COM
pany.
The Section Attacked.
The section of the code upon which
the action was based is 6S1, and is
as follows:
Each and every insurance corpora.
tion or company transacting business
in this state must be taxed upon the
excess of premiums received over
losses and ordinary expenses incurred
during the year previous to the year
of listing in the county where the
agent conducts the business properly
proportioned by the corporation or
company at the same rate that all 9th
er personal property is taxed, and the
agent shall render the list and be
personally liable for the tax; and il
he refuse to render the list or make
affidavit that the same is correct to
the best of his knowledge and belief,
the amount may be assessed accord
ing to the best knowledge and dis
cretion of the assessor. Insurance
companies and corporations are sub
ject to no other taxation under the
laws of this state, except taxes on
real estate and the fees imposed by
law"
When the matter was submitted to
the lower court decision was rendered
multiplying the entire section, thereby
sustaining the company. This judg-
ment has been modified by the SUI
preme court, which declares that the
concluding sentence of the section is
unconstitutional. but that the parts
I. preceding it are constitutional and
valid and have not been repealed and
therefore apply to foreign insurance
companies doing business in the state
Milburn Dissents.
The opinion was prepared by Com
missioner Poorman and was concur
: red in by all of the justices, except
Mr.. Justice Milburn. who differs from
the others only as regards the inten
ltion of the legislature at the time