109 Iowa 585 | Iowa | 1899
'Section 1333 of the Code of 1897, in so far as it is material to this controversy, reads as follows: '“Every other insurance company or association doing business in this state, not including those otherwise taxed under 'the provisions of this section, and not including county mutuals and fraternal beneficiary associations, shall at the time of.making the annual statements as required by law, pay into' the state treasury as taxes one per cent, of the -gross amount received by it on assessments, fees, dues, or premiums fox business done in this state, including all insurance upon property situated in this state and upon the lives of persons resident in this state during the preceding year, after deducting amounts actually paid for losses and -the amount of premiums returned. At the time of paying said taxes, said companies and associations shall take duplicate receipts therefor, one of which shall be filed with the ■auditor of state, and upon filing of said receipt, and not 'till then, the auditor shall issue the annual certificate as •provided by law, and the taxes provided in this section shall be in full for all taxes, state and local, against such -corporations or associations, except taxes on real estate and special assessments. No reduction or exemption, from the taxes herein provided shall be allowed for or on account of -any indebtedness owing by any such insurance company or -association.” Appellants paid into the state treasury the taxes provided for by this act. Section 1323 of the same ‘Code provide that: “The shares of stock in corporations
Plaintiffs’ contention is that, having paid the taxes required of them by section 1333, before quoted, they are relieved from all other taxes, state and local, except taxes on real estate and special assessments; while defendant contends that that part of said section which relieves them from the payment of state and local taxes is contrary to the provisions of section 2, Art. 8, of the constitution, which is in these words: “The property of all corporations for pecuniary profit shall be subject to taxation the same as that of individuals.” But for the clause contained in section 1333, relieving insurance companies organized in this state, that have paid the tax therein provided, from the payment of state and local taxes, there would be no question of the right and duty of the defendant to list their shares of slock as required by section 1323 of the Code; and the sole question for solution is, is that provision valid ? We may also assume that, but for the clause we have quoted from the constitution, the legislature would have the
Section 1333 provides for a tax on the gross receipts of such companies, without reference to- the amount of their capital stock, their surplus, o-r their investments. No-acco-unt whatever is made o-f their holdings. If the business of the year should not prove profitable, because of losses and premiums returned, no- tax wottld be required of them under section 1333, notwithstanding the fact that they may have had large amounts of personal property, which, in the hands of an individual, would be subject to-taxation. Surely their property is not subject to taxation-“the same- as that o-f individuals” if the only tax they are-required to pay is that imposed by this section. It may well be doubted whether a tax on premiums is a tax on-property in any pro-per sense. See City of Dubuque v. Northwestern Life Ins. Co., 29 Iowa, 9; City of Burlington v. Putnam Ins. Co., 31 Iowa, 102. But, however this-may be, it is' manifest that the personal property of the corporation accumulated from year to year is not subject to-taxation under the provision relied upon by appellants. The legislature did not have the power to exempt this property from taxation, and its act- in so doing is clearly unconstitutional and void. Neither had it the power to absolve-these companies from the payment of county, city, and school taxes. That being true, it was the- duty of the assessor to list the stock of these corporations under the provisions of section 1323 of the Code.
We are not to be understood as questioning the right-of the legislature to adopt different methods for ascertaining values, adapted to the various peculiarities o-f the property, o-r its right to fix the situs of property, both real and' personal, although, in the exercise of -such rights, inequal