Court Opinion

ID: 3231692
Source: CourtListenerOpinion
Date Created: 2016-07-05 16:07:03.776419+00
Date Added: 2024-06-11T07:40:14.849267
License: Public Domain

The opinion does not mean, and, we think, is not fairly susceptible to a construction which would relieve a foreign corporation from a franchise tax because of a temporary shutdown of its plant; nor except from its capital employed in this state property owned but not immediately connected with present operations.
We merely hold a franchise tax to be what it purports to be, a tax upon the exercise or use of its franchise in Alabama for the purposes of such franchise; and that, if no corporate activity is conducted in Alabama during the period covered by the tax, the corporation does not owe a franchise tax. In the case at bar the corporate activity in Alabama is by a domestic corporation, which has paid the franchise tax on the very stock sought to be made the basis of another franchise tax because of the ownership of such stock by a foreign corporation.
Application overruled.
ANDERSON, C. J., and GARDNER and FOSTER, JJ, concur. *Page 634