194 So. 589 | Miss. | 1940
The State Tax Collector seeks to obtain a decree against both of the appellees in the sum of $26,056.50, for what is commonly known as "gasoline taxes," the amount of recovery sought being six cents per gallon tax on 434,275.10 gallons of gasoline purchased by the appellee Federal Land Bank of New Orleans from the appellee Standard Oil Company of Kentucky, during a period beginning in the year 1932 and ending in September, 1937, and used by the bank for propelling automobiles *316 owned by it on the highways of this state in the transaction of the bank's business.
Exemption from the payment of the tax is claimed by appellees on three grounds: (1) That the state legislature by Chapter 93 of the Laws of 1932, and Chapter 162 of the Laws of 1936, regular sessions, expressly exempted the payment of such tax where the gasoline is sold to the federal government, or to any of its departments, agencies or instrumentalities: (2) That the attempt to impose and collect the tax violates Section 26 of the Federal Farm Loan Act, Title 12 U.S.C.A., Sec. 931, and Article VI; clause 2 of the Federal Constitution, U.S.C.A., providing that the Acts of Congress shall be the supreme law of the land, and (3) That it was beyond the power of the legislature to tax its sale or use, because the Federal Constitution impliedly prohibits such taxation, when it is sold for use or used by a Federal Land Bank.
The tax collector's position is that under the well settled principle of statutory construction to be applied in the interpretation of statutes under which tax exemptions are claimed, and which requires that the exemption be denied unless the intent and purpose of the legislature to grant the same is clear and unmistakable, the state statutes here under consideration did not grant the exemption claimed; and that neither did the federal statute invoked by the appellees withhold from the state the right to levy the tax in question, nor does the federal constitution prohibit such taxation.
The trial court held that the provisions of said Chapter 93 of the Laws of 1932, and Chapter 162 of the Laws of 1936, supra, expressly exempted the appellees from payment of the tax for the reason that the gasoline was sold by the appellee oil company to the appellee Federal Land Bank, as an agency or instrumentality of the Federal Government, for use in its own automobiles, and in the transaction of its business; and hence the chancellor dismissed the bill of complaint without passing on the other *317 two grounds invoked by the appellees. This appeal is from that decree.
Section 6, subsection (a), of Chapter 93, Laws of 1932, supra, levied the six cents per gallon tax here in question, and Section 7 of the said act provides among other things that:
"Where gasoline or other petroleum products on which the tax has been paid is sold to the Federal Government, or any of its departments, agencies, or instrumentalities, the distributor shall file a written report thereof with the Auditor, accompanied by a United States Government form No. 44 or 1066, or such other form as may be substituted for said form, which report shall be duly signed by the officer, agent or other employee of the Federal Government, making such purchase, to the effect that such gasoline was purchased for the use of the Federal Government, or some one or more of its departments, agencies or instrumentalities.
"And such distributor, upon filing such report and certificate, accompanied by said forms, as above provided, and upon furnishing such additional evidence of such sale as the Auditor may require, may after first deducting from such gasoline the two per cent (2%) allowed for evaporation and wastage, and other losses, deduct from his next monthly report and payment the net amount of tax paid on such gasoline."
Section 8, subsection (a), of Chapter 162 of the Laws of 1936, supra, likewise levies such tax, and Section 31 thereof provides that there shall not be included in the measure of the tax levied under the statute any gasoline sold to the Federal Government or any of its departments, agencies, or instrumentalities, and contains other provisions substantially the same as those hereinbefore quoted from the 1932 statute aforesaid.
In the cases of Smith v. Kansas City Title Trust Co., et al.,
Not only has the Supreme Court of the United States in the decisions hereinbefore cited held that a Federal Land Bank was an agency or instrumentality of the Federal Government, but our own Court has so held in the case of the Federal Land Bank of New Orleans v. Tatum,
It seems clear to us that if the Federal Land Bank is an agency or instrumentality of the Federal Government within the meaning of the Moratorium Law referred to in the Tatum case, the same is equally true under the provisions of the said Chapter 93 of the Laws of 1932, and Chapter 162 of the Laws of 1936, supra, now under consideration. While it is true, as stated by appellant, that the Moratorium Law is not at all similar to these tax statutes, nevertheless the holding of the Court as to the status of a Federal Land Bank as an agency or instrumentality of the Federal Government would apply in each instance. We must assume that the legislature in undertaking to exempt agencies and instrumentalities of the Federal Government had in mind the decisions of the courts which had held that a Federal Land Bank was such an agency or instrumentality. *321
It is unnecessary that we consider the question as to whether or not the state was prohibited by the federal statute referred to and the constitution of the United States from levying the tax in question, for the reason that the legislature has not undertaken to exercise such a power, but has refrained from so doing. Therefore, as to whether or not the state has the right to levy the tax here in controversy without violating Section 26 of the Federal Farm Loan Act, Title 12, U.S.C.A., Sec. 931, we express no opinion. In other words, in the language of Mr. Justice Frankfurter, in discussing the principle thus involved in the case of Graves v. New York,
Affirmed.