Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-07-26
TAX ON CIGARETTES
AND CIGARS UPHELD
!. BY SUPREME COURT
Dealers Lose Fight Against
10 Per Cent Levy
in Georgia

of the Georgia general assembly was
held to be constitutional in every re-
spect in an opinion handed down
late Wednesday afternoon by the
Georgia supreme court, written by
Justice Beck and concurred in by
the other members of the tribunal.
In commenting on the decision,
Governor Walker said, in part:
II am taking this occasion to mott
" every dealer within the borders of
he state that this law will be rigid
y enforced. In the name of the gal
ant veterans of the sixties 1 extend
hanks to Revenue Commissioner
Fandiver, Pension Commissioner Nc
iregor, Representative Miner and
President Carswell for their untiring
Efforts in enacting and perfecting
his legislation. In like measure I
bow call on Confederate veterans
Everywhere to show their apprecia
ion by demanding that the law be
Equally and uniformly enforced. 1t
tax on a harmful luxury. Those
Who pay do not complain.
Favorable to Dealer
"The law is most favorable to
ealer and manufacturer. 1t re-
ieves the dealer Of an occupation
ak of $100. 1t helps the jobber and
manufacturer by removing tax
|rohibitory on all small dealers.
1.-THE decision of the court means
hat a quarter of million dollars in
ash is available at once for provid-
hg new and better buildings and
qupment fir he tubercular hospital
t Alto, and that a substantial sum
Eill be added to the pensions already
aid veterans. For their sakes |
romise that every power Of the
government will be exercised in the
enforcement of the law"
The decision held that the tax does
hot violate the constitution of Geor-
ia by containing or referring to
more than one subject matter, that
does not violate the clause of the
Georgia constitution relating t. the
uniformity of taxation, and that it
s not obnoxious to the interstate
commerce clause of the federal con-
Intuition.
cit is not unreasonable or confis
atory nor does it violate the due
process clause in the state and fed
raj constitutions" stated the deci-
ion, upholding the action of Judge
ior court, in refusing to grant an
Injunction to stay collection of the
ak after it had been attacked by
group of Atlanta dealers. More
han fifty dealers had become parties
o the litigation before the case was
rgued.
Big Revenue Anticipated
1t was estimated at the time of
ne 90 nf bot /
you'd bring in from $2,500,00O to
100000 in additional revenue for
he state. OF this amount, the state
anatorium for tubercular patients
t Alto was to receive $250,000 per
Fear for two years for building a
lew plant and The remainder was to
10 to Confederate pensioners, of
both the old and new classes.
The case was known as that of E.
(. Lloyd ct al. VS.. Tax Collector W.
Richardson, of Fulton county, and
M. Vandiver, head of the state de-
lartment of revenue. After the case
ad been decided in superior court
nd the appeal taken to the supreme
curt, the trial judge ordered that
he protesting dealers should use
lamps on cigars and cigarettes sold,
tut gave them permission to give
ond to the state revenue depart
nent instead of paying cash for the
lamps. These bonds amount to
nany thousands of dollars, it is said.
Concerning the allegation by oppo-
ents of the tax that it contained
nore than one subject matter, the
upreme court held that the Sub
ect natter was the "1evying of a
AK" and that appropriations of the
k9ceeds of the tax, as stipulated in
e bill, was an object germane to
he subject and therefore not uncon-
tftutional. This point had been at
hcked by opponents of the measure.
st may be true" stated the deci-
ion, that the legislature generally
asses acts for 1evying taxes with
Tut including in the same bill pro-
ision for their appropriation, but
hxation and appropriation are so
loosely related, so intimately asso-
lated, in our minds, that where the
bject of taxation is indicated by
aiming the subject or object to
Which the fund which it is proposed
b raise by the levying of such tax
allocated, no surprise can be Gre
ted. but the natural order of things
GEMS to have been followed"
Purely Local Tax
The court held that the main pur.
lose of the tax was not the appro
briation of funds, the contentious OF
pposing counsel to the contrary
Eoing further, relating to the uni
ormity of taxation, the decision
ED the constitutional provision re
erring to ad valorem taxation has
Nothing to do with an excise or bust
less tax and that the uniformity OF
he law has been met in every par
ocular by the tobacco tax.
Concerning the allegation that the
provisions of the federal constitu
ion relating to interstate commerce
had been violated by the tobacco
AK. the decision held that the ta1
VAS not imposed until after thu
hipment of goods to the retail deal
r had been made and the transac
lion ended, and goods ready for SALE
o the customers. BY that time, the
ecision held. the goods had los
heir character as articles of inter
tate commerce and had become
ubjects of local taxation.
The decision further held that tn,
contention that the tax act is ''un
easonable and confiscatory and de
Drives petitioners of property with
put due process of law" was clear
without merit.
The litigation over the stamp ia,
has handicapped the state revenu
department. in the enforcement o
he law, it was said, and the deci
sion of the supreme court has beer
waited with great interest in stat
capitol circles
The cigar and cigarette tax wa
imposed by bill of which Repre-
sentative Herman Miner, Of Dodg
bounty. was the author. The meas
lre was bitterly fought in bot
houses of the legislature, and tn
charge was made on the floor tina