The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-07-17
EXCESS TAXES
CASE MAY GO
TO US. COURT.
ThOresen Plans 10 Appeal
Decision Of High N. u.
Tribunal
NOT CONSTITUTIONAL
Corporations Allowed Same
Privilege as Individual
in RuliE"

The United States S ma" Gov
may be called upon I" declc. . /,
validity of the North Dakota cor
porate excess tax law declared un-
constitutional in an OF Mon handed
down by the state supre \" court .".n
yesterday.
Tax Commissioner T. ] Il. hoe
sen, whose efforts at enforcing the
corporate excess statute ended with
the high courts decision vOiding the
law, today announced he would
take under adviSement the question
Of submitting the case to the federal
high court for final determination.
The decision of the state supreme
court, written by Judge Luther +.
Pirdzcll, Grand Forks, holds the dis
pu,cd statute violates both state and
federal constitutions.
Clashes With Amendment
The statute is held to clash with
the fourteenth or equal rights amend
mcnt to the national constitution as
follows:
where. as Il result of the appli-
catiCn Of an arbitrary and artifi-
cial standard in determining the
value Of Il franchise as property for
taxation, n corporation. joint stock
company or association is deprived
Of exemptions from taxation upon
class Of property which Is exempt
in the hands of individuals, those
Disseminated against are denied the
equal protection Of the laws within
the fourteenth amendment to the
constitution of the United states,
the decision holds.
.,T.,,, ,.If, Il n n
tv court. The Gamble Robinson
Fruit Company, Bismarck, filed COM
riaint against the tax commission
,t-rlarin: money and credits are re-
uuirei TO be deducted from capital
stock in assessing the corporate ex-
ce5: tax.
JansOnius Upheld
Judge Fred j.. sonius iii All opin-
ION rendered earlier IN the month
sustained the plaintiff, Commission.
er Ihoresen, who has represented
the state throughout the course OF
The action, appealed the case to the
state high court.
The decision which sustalns Judge
Iansonius's action holds with the tax
commissioner that moneys and cred
It's cannot be deducted in computing
,hr corporate excess tax. In placing
,his construction on the 1923 statute
The court found it t" be unrohstitu-
tional.
The law violates Article 90 Of
the amendments To the state cohsti-
tnion specifying uniform taxation
on the same species OF property.
where the legislature. in provld-
ing for the valuation Of franchise
directs the application Of formula
containing elements having no bear
ing upon the determination OF the
question Of value. and where. by the
application OF such formula. Unequal
tiles necessarily result, as between
corporations. Joint stock companies
and associations enjoying like privi-
l.ges. the law fails to secure the uni
formty required by Article 20 OF
the amendments to the state consul
tution," the decision declares.
Never Enforced
c. c. Converse, former tax COM
missioner, drafted the corporate en-
cess law which passed the 1923 ses-
sion Of the legislature. 1t went into
effect during the administration OF
Governor Nestos, but was never en-
forced during his term.
When Commissioner ThOresen took
office in 1925 he proceeded to assess
the tax against approximately 3,50(
domestic corporations.