Every evening, Wilmington daily commercial., 1922-02-11
N|ANDYWINE. FIRE CO.
EXEMPT FROM TAX
nh b osoldsd by Attorney
ooNeval TeWneend FOR the
voar 1921.

60m ooAoo1 tA1 FOR 1871. ACCORDING to
the ouoooUen0 spluiou given by At
to~Wev~0 0enarNl Townsend 20 the state
rNs peoarensnt;
~ NOWNra Jester. ESQ. state
osAcsa TAa Commissioner. Whining
ten, Delaware.
~ Asar Mr.. Jester Under date
~ pSoruAsy >. 1874. you asked for my
opinion - tc whether or not Brandy
wtNe rSvo CO. u exempt from the
VnymWnt u saase tor the year 1921
uW1ee the pscvtsicns of AN Act &c
rrsVtAs Nevsaus ser School Purposes
ks1We cAactsr ,. Volume ~, Deiswars
law
vcur letter and enclosures c-,sb.
llsh ths fclicv'ns facts,
i.--NrnAywlne rirc CO. Was
croauisV ~ Q corporation not for
rvoet the object cs the orxaniya-
'icn bsinG the essinsuishment ot
Npuo No capital stock WAS Issued
10 the members.
o,-rhs ncniss paid by the city
- the company under tho con-
tNrts hereinafter referred 10
wsr~ nscd to purchase equipment
frf the cumpNn, md to pay the
wAOes cf two ~ tie members.
u.~-Thsr~ were NO net earnings
which Injured % the benefit of the
members.
A~-tricr % the .-ts shlishmsnt
~ the new fltc Department FOR
tie city cs Wilmington. the COM
pAny. for s~ve,ai years. contracted
With the city. ~ n stipulated sum,
90 protect the property ~ the City
ssains' nrs
e--rhc company owned its own
building and Il had 40 revenues
except foes, dues and rncs. and the
money received from the CITY.
Mv opinion has reference solely {,
issss for the year 1881 and Ia base.
solely upon tho foregoing statement,
~ sAor. The law applicable 20 suol
70 as follcwp,
section of the above ment,one.
AZ, provides that for the privilege o
exercising fs franchise In thia state
in corporate or organised capacit,
~very corporation doing business 81
,he state. "escoN, corporations here
insfter specified" shall paw 10 the Ia
Department for school purposes. a.
annual tsS a. the rate of two and one
third mills upon each dollar OF IN
se,aal value of that portion OF IL
vspi'al Onoluding surplus or undlvid
ed rrcf,s> used and invested IN thi
state during tho proceeding calen
dsr year The words above quoted
except corporations hereinafter sneci
rsd"--mesn the corporations ex,mp,
cd hN Section 2 % said Act. The onl
clause IN section ? which could rellcv
tho Company is sct forth in psraSrap
q. which Section and paragraph. fc
fhs purposcs of this opinion, may 4
r-sd ss follows;
Sec. .. Conditional and cthsr
Ersmpsions:--Ths following or
sanintions shall hs exempt from
,asatscn un6sr this Article.
q. corporations
organised for charitable
purposes no part OF
the ne, earnings of which sour~s
90 the bsneHt 81 any p<Nase
stocsholder or individual"
Under the foregoing statements ,
fact and provisions Of law. Brandy
vine Fire Co. would be exempt as q
corporation organized for chAritah
rurrcsss. no par, ~ whose ret carr
inss inp-es 20 the eenent Of any ir
di,fdusi"
might further sdd that while ever
sumption of law is against exemy
ton. yet n the above s,stsmsnts ,
fart b correct and garticlarly
ne part ef the net earnings inures
ihe hensnt % any Individual memb.
sueh an sxsmp,ion 10 90 much with.
The sr'r't os the exemption section
Tho Law ~ to strengthen tho eoncl,
sion that paragraph Z of Section
vou'd operate ~ \ specific exemptic
81 Hra ndy~ins Fire CO.
H. however. during the wear 10.
th. company had earnings which Il
ured 20 the esnert q i,s member
then The company would be suh,-
90 tax on invested capital for n
year 1921.
This oplrloa dcss not cover: ta).
The TAXABLE status Of the corpora,i,
for The ysnr is,.: or tbl--rhe ,axah
statue 81 individuals who may ha,
rsc"ivsd mouies from tn. corporate,
either by vay q dividends. distrin
ton upon dissolution. or otheryise