The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1916-02-24
THIS DECISION
FAR-REACHING
IN THE STATE
SUPREME COURT OF GEOR-
GIA DECIDES INTEREST
ING POINT, AFFECTING THE
ENTIRE STATE.

The Georgia supreme court Tues
day handed down a decision in the
United Cigar Stores company case, ap-
pealed from Fulton county. which will
have material bearing on all trading
stamp. premium coupons and similar
premium schemes in Georgia. The
court has decided that section 80 of
the tax act of 1909. which is the one
now in force, is nul, viod ana uncon-
stitup.iCnal. The opinion is written
by Mr. Justice Beck and is concurred
IN by all justices.
The act imposes business tax Of
$500 on each place of business where
premium certificates, coupons or tags
are used. A fl ia was Issued by Tax
Collector Stewart, of Fultcn county,
to force collection en- the 5000 tax
from each of the United Cigar Stores
company places of business in Full
ton county, and the case went into
the superior court. From there it
was appealed to the supreme court
and in passing on it, that court deals
with only one question of constitu-
tiOnality, but refers to other grounds
set up by the appealing company
which, if passed upon, might also have
a bearing on the tax act in question
Holding, though, that the one point
covered shows section SO of the tax
act to be faulty, it says there was no
use to go further into the conten-
tions.
In the headnote the court says that
section 33 of the tax act of 1909
(page 500 which imposes a tax upon
EVERY n III "a II ia cturer of tobacco and
retail dealer in tobacco, who redeems
or offers to redeem any tags or labels.
sold or distributed or given with to-
baccO sale, the sum of 5000 for each
place of business where such tags or
labels are redeemed, is void because
violative of article 7, section 2, para
graph l, of the constitution of Geor-
gia, which provides that taxes of this
character shall be uniform on the
same class of subjects55
The decision sets out that the plain
tiff in error-the cigar company-filed
an equitable petition in the Fulton SUI
pCriOr court on the ground that sec
tion 33 is unconstitutional. The case
was heard without a jury on the
agreed statement of facts, and judg-
ment was entered, finding for the
plaintiff, Stewart, denying the prayer
of the petitioner for an injunction.
TO this the company excepted, set
ting out that it is a corporation under
the laws of Illinois, with a number
of stores in Georgia and other states.
The complainant alleged that the tax
act is in violation of the state and
federal constitution and on this the
supreme court says:
I'VE deem it unnecessary to men.
ton more than one ground, for it is
the opinion of the court that this
section of the act is violative of ar
ticle 7, section 2, paragraph l, of the
constitution of Georgia, and being vio
lative of that provision, is void. The
particular provision of the constitu
ton referred to is in the following
language: All taxation shall be uni
form on the same class of subjects
and ad valorem on all property sub
limits of the authority levying the
tax and shall be levied and collected
under general laws"
The court goes on to say that "in
the present case the classification
made in imposing the tax in ques,
ton is unreasonable and arbitrary. OF
course, it was competent for the leg
islature, in framing its law for the
co lection CT occupa'iCn or business
taxes, 10 put tobacco dealers in a class
by themselves. and tobacco dealers
might have been divided without i'm
rinping upon the. rule against arbi-
trary classification into retail dealers
end Wholesale dealers, and there might
have been subdivisions of these di-
visions without rcce~ sar.ly making an
arbitrary classification. But the tax
under consideration IL not imposed
upon manufacturers and dealers in to-
bacco generally or manufacturers and
dealers in specified kind of tobac-
so, but upon the manufacturer or
dealer in tobacco who belongs to a
class created by this section of the
tax act, and the basis Of classification
here made is the redeeming or offering
to redeem tags or labels sold or dis
tributed or given with a tobacco sale,
while other businesses or occupations
doing precisely the same thing for
which the dealer in tobacco is taxed
are not taxed"
The general effect Of the decision is
show min that portion which holds:
"If the tax law upon all merchants
l. Ia,