Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-10-16
TAX
BEING CONTESTED

a suit of considerable Importance,
that OF the Black Rock Copper Mining
& Milling company VS.. c. S. Tingey, is
being argued today in the supreme
court, involving as 1t does the question
as to whether corporation tax is le-
gal. Ii the plaintiff, who is the appel
LIANT, is successful in the higher tribun-
al, il Will mean that the state will lose
an annual revenue of something like
$4,000.
other corporations, attacked the con-
stituticnality of a law passed by the
legislature OF 1907, requiring all COR
rcraiions to pay an annual state IL
eelise. 1t was contended by the plain
tilt company that such q requirement
meant double taxation by reason of the
fact that each corporation was subject
to property taxation.
The contest was carried into the dis
trlct court, III which tribunal Judge
Richie declared the law to be consti-
tutional. AT the hearing today in the
supreme court, arguments pro and con
We're made by Attorney Blsmarls Sny-
der, Of counsel for plaintiff, and As
sistant Attorney General A. r. Barnes
for defendant.
DOUBLE TAX URGED.
Strongly contending that the measure
was nothing short OF double taxation,
Mr.. Snyder vigorously attacked tho
law. He said it was not analogous to
a merchants license, for IL a merchant
tailed to pay for the privilege of do
ing business his doors could be lawfully
closed. II he persisted in doing bust
ness without a. license, he might be
tined, butEthere would be no lien placed
;npon his property, as would be the
case OF failure in payment OF a cor
sporation tax. Again, the mercantile
mouse might be conducted by cor
poration and would be subject to liz
censn and tax.
A + franchise rs. is property, continued
}Mri5Snyder, and should not be taxed
TWICE. When corporation papers are
f ilietff asfee has to be paid. tproportion-
atel{t 20 the Capitalization. and as the
PROPERTY held by the concern was sub
ject to general taxation it should not
Ea forced to pay a special tax, as re-
CURED I'M the law of 1907.
THE DEFENSE HEARD.
For the defense, Mr.. Barnes said that
the whole matter hinged on the cues
ton asato whether 1t was tax upon
property, or in the nature of a license
or privilege. He was strongly in favor
OF the last named proposition. A fran
chisc Is not property in the wording OF
the constitution. he said. A franchise
cannot be bought or sold, does not sue
coed from one set of persons to another.
no more than does the elective fran
chise, and If a franchise can be called
property and taxed, the same would be
true of the elective franchise.
WEc1. the arguments are finished the
matter will be taken under advfsement
by the court, decision not being ex-
pected for several weeks.
Although there are upwards of G. 500
fty,,,r .zs 80. ~,
hut about 5000 are considered dead
ones" That is, $500 have a legal
standing, but that is all they have The
average tax on the 5000 Is about so,
making the revenue to the state from
the corporation tax 100000 per annun.
In 1907 the tax was paid by 2,100 cor.
pcrations and there We're 300 deln-
quents. AS stated, the tax is graduated
from S. to $50, and failure to comply
with the law Is punishable by n fine
OF $l00, which sum becomes a lien upon
any property owned by the corpora
ton.