The Birmingham age-herald., 1904-01-01
LAW DISCUSSED
 AND EXPLAINED Recent Act Increasing Tax on
 the Corporations DOMESTIC. AND FOREIGN Act on Foreign Corporations Is In Ac- cord With Section 2s2 of the Con. stltuton--Rule In Past
 Years.

With the closing of the year 1903 there has been much discussion of the recently enacted law which increases the tax on foreign corporations doing business in Alabama very materially.
 The new law goes into effect today and it is only within the past few days that corporations have seemed to realize the importance of the act to them.
 The increase in the tax on foreign corr porations doing business in the state is so material that it's importance as an in- creased source of revenue for the state and county is appreciated by very few outside of those who actually framed the bill and got it through the last legisla- ture.
 Augustus w Benners, member of the legislature from Jefferson county, outlines the changes made by the new act as fol- lows:
 Domestic Corporations.
 "Domestic corporations pay and have paid for a number of years three kinds of taxes to the state.
 First, a tax on their real and personal property.
  the amount of their capital stock ranging from $10 to s500
 Third, a tax commonly called a fran chise tax the amount of which is arrived at as follows: From the market value of all it's shares deduct the assessed value of its real and personal property and the diff ference (supposed to represent the value of it's franchises, etc) is taxed at the reg ular state and county rate
 Foreign Corr Eoratons.
 .'Foreign corporations have for a num- Der of years paid the first and second classes of taxes above mentioned but not the third The constitution directed that the legislature levy on foreign corpora tions a license tax analogous to the third class of taxes above mentioned as appli- cable to domestic corporations It was pursuant to this constitutional mandate that the act in question was passed
 Under the law then as it now stands a foreign corporation pays to the state: ''First, a tax on it's real and personal property.
 Second, tax of one-tenth of one per centum on the amount of its capital em- 
 ployed in this state.
 'It does not pay the graded privilege tax above mentioned as applicable to do- nestle corporations"
 The Law.
 The act increasing the tax on foreign corporations is in accord with section 232 of the constitution of the state winch is as follows:
 "No foreign corporation shall do any business in this state without having at least one known place of business and an authorized agent or agents therein and without filing with the secretary of state a certified copy of its articles of incor- poration or association. Such corporation may be sued in any county where Is has business, by serving of process upon any agent anywhere in the state. The legis- lature shall, by general law, provide for the payment to the state of Alabama of a franchise tax by such corporation but such franchise tax shall be based on the actual amount of capital employed in this state. Strictly benevolent, educational or religious corporations shall not be requir- ed to pay such a tax"
 The act which increases so materially the tax on foreign corporations doing business in the state was passed by the last legislature and was approved Oc- tober 1, 1903. It provides for amending an act entitled an act to better provide for the revenue of the state by the fol- lowing additional sections:
 Every foreign corporation, except rail- road, telegraph, long distance telephone, express and sleeping car life and fire in- surance companies, building and loan as- sociations, banks or banking associations, authorized to do business under the gen eral law shall pay to the judge of pro- bate of the county in which 1t has resi- dent agent license fee of one tenth of one per centum for the use of the state, and of one-half that sum for the use of the county for the privilege of exercising it's corporate franchises or for carrying on its corporate business in such corpo- rate or organized capacity in this state, to be computed of capital employed by 1. within this state. The tax hereby imposed shall be due and payable on the first day of January of each year by every such foreign corporation then doing business in this state, to be computed upon the basis of the amount of capital actually employed by 1t within the state during the year preceding such date"