The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-12-08
INSURANCE PREMIUM TAX.
Validity of Act Under Which a Tax
is Placed by Each County De-
clared Unconstitutional.
News and Courier.

News and Courier.
Abbeville, December 3.-Judge
Memminger today filed his decree in
the case Of the New York Life Insur-
ance company against William T..
Bradley as treasurer Of Abheville
county, overruling the demurrer of
the State and giving judgment for
the plaintiff for the amount demand
ed in its complaint.
The action was brought to test the
validity of Section 3O2 and 1909 Of
the code Of laws Of South Carolina,
directing the comptroller general to
certify to the county auditors Of the
different counties in the State the
amount of annual premiums received
by the different insurance companies
from each county, which amounts the
auditors were directed to enter upon
the tax books Of the county for taxa
ton along with other property Of the
county.
The plaintiff, contending that this
law was invalid, paid the taxes so
charged for the year 1906 under pro-
test and brought its action to recover
suon taxes, alleging that the Act in
question was invalid for the following
reasons: That the plaintiff did not
at the time Of said levy or at any
time prior thereto have any property
Of any kind within the county Of Ab-
beville; at the time Of said pretended
levy plaintiff did not have nor did it
Heretofore have nor has it since had
wiphin the said county or within tie
jurisdiction Of the authorities impos-
ing said tax. any property Of any k:ad
which WIS c.bJcct to tax;.t''I shat
the levy and collection Of said tax was
in contravention of the constitutions
Of the United States, and particularly
of the 18th amendment, in that it de-
prived plaintiff Of any Of its property
without due process Of law and denied
to plaintiff the equal protection Of the
law; that the Act under which the
taxation was levied is unconstitution-
al for the reason that the taxes were
imposed without any valuation or as
sessment, and the said tax is not a
tax upon property within the jurisdlc-
tion of the body imposing the same,
but is tax imposed arbitrarily with
out regard to valuation, assessment,
uniformity, or equality or the place
where the property is actually located,
contrary to Sections l, 5 and Is OF
Article 10 Of the constitution Of the
State of South Carolina: that even II
said gross premiums or gross receipts
were within the jurisdiction Of the
body imposing the same, the said tax
IS still unconstitutional and void and
p ntrary to the provisions Of Section
and 5 Of Article 10 of the constltu-
ton of the State Of South Carolina, as
stated above.
Originally the action was brought
against William T. Bradley as county
treasurer Of Abbeville county, but up
on the hearing Of the case the Hon.
F. B. Gary, who appeared for the
county, demurred to the complaint in
so far as the county was affected, and
asked that the case be dismissed so
far as the county was concerned, on
the Ground that the Act authorizing
the suit provided that the suit be
brought against the county treasurer
alone. This motion was unopposed
and an order to that effect was made.
Attorney General Lyon represented
the county treasurer under authority
Of the Act Of the general assembly
and demurred to plaintiff complaint,
contending that the tax imposed was a
privilege or franchise tax and not a
tax upon property, and that the State
had a perfect right to prescribe con-
ditions upon which the company
should do business in the State.
The case turned largely on the point
as to whether the tax so imposed was
a tax upon property or franchise or
privilege tax.
Judge Memminger in very able
aecree revieMs the various statutes Of