This is аn action brought by plaintiffs against defendant to recover an alleged illegal or invalid tax paid under protest. The plaintiffs complied with the requirement of the statute, C. S., 7979.
R. R. v. Commissioners,
The questions involved are: (1) Has the city of Concord authority to levy a privilege tax on “Bakeries, operating or delivering in thе city?” ¥e think so.
(2) If so, can the tax be collected from a bakery located outside the limits of said city which delivers its products, collects money for same, and solicits new business within said city? We think so.
The material parts of the ordinance in controversy are as follows: “Levying, assessing, imposing, and defining the licеnse and privilege taxes of the city of Concord, for the year beginning 1 May, 1932, and ending 30 April, 1933. The board of aldermen of the city of Concord, North Carolina, do ordain: Section 1. That to raise funds for general municipal purposes, the following license taxes hereinafter specified are hereby levied for the privilege of carrying on the business, trades, avocations, professions, employment, calling, or doing the act named, within the corporate limits of the city of Concord from 1 May, 1932, to 30 *470 April, 1933, unless for some other time or period herein specified, and all such taxes shall be due and payable in advance at the office of the tax collector for the city of Concord: The payment of any particular tax herein imposed shall not relieve the party paying same from liability for any other tax specifically imposed for any other business conducted by such person. . . . Section 8. That whenever the word ‘person’ is used in this ordinance, the same shall be construed to include ‘firms,’ ‘companies,’ ‘corporations,’ and ‘associations.’
“Section 9. Schedule of city privilege license taxes. Bakeries operating or delivering in th'e city, $100.00.”
This ordinancе was adopted 7 April, 1932'. The above ordinance was amended 2 June, 1932: “An ordinance relating to the taxing of bakers. The board of aldermen of the city of Concord do ordain: That every person, firm, or corporation operating or delivering bread or other bakery products in the city оf Concord shall pay a tax of one hundred dollars ($100.00). That every person, firm, or corporation delivering cakes only within the said city of Concord shall pay a tax of fifty dollars ($50.00). That every person, firm, or corporation delivering pies only within the city of Concord shall pay a tax of fifty dollars ($50.00). Thаt every person, firm, or corporation delivering doughnuts only within the city of Concord shall pay a tax of fifty dollars ($50.00). That every person, firm, or corporation who or which shall violate any of the provisions of the above ordinance, or who or which shall conduct or carry on the above business without paying the above tax for same within the city of Concord, shall be guilty of a misdemeanor and shall be fined not exceeding fifty dollars or imprisoned not exceeding thirty days for each offense: Provided,, that each day any of the provisions of this ordinance are violated shall constitute a separate and distinct offense. That this ordinance shall take effect and be in force from and after its publication. Ordained by the board of aldermen of the city of Concord, this 2 June, 1932.”
It was agreed by the parties that the ordinance adopted 6 April, 1933, is identical with the ordinance adopted 7 April, 1932, except that it applies to the year from 1 May, 1933, to 30 April, 1934, and that said ordinance adopted 6 April, 1933, may be omitted entirely from the case on appeal. The ordinance adopted 2 June, 1932, above set forth, shall be included in full. We think the ordinances of 7 April, 1932, and 2 June, 1932, in reference to bakeries, are practically the same.
The following is in the agreed statement of facts: “The plaintiffs above named are persons residing in Mecklenburg County, North Carolina, and trading and doing business as Charlotte Bread Company; that said plaintiffs have their only bakery and place of business in the сity of Charlotte, Mecklenburg County, North Carolina, and maintain no *471 bakery or place of business in the city of Concord; that all of said facts were true at all the times involved in this action, and that at said times the activities of the plaintiffs in the city of Concord were as follows, to wit: The plaintiffs, through a salesman, operate a truck from their plant in Charlotte to the city of Concord daily, carrying bread and other bakery products, and delivering the same to grocery stores and cafes in said city. The salesman collects for the bakery products at the time of delivery. From time to time customеrs of the plaintiffs discontinue buying bakery products from the plaintiffs, and also from time to time the salesman of the plaintiffs, by solicitation in the city of Concord, obtains new accounts, which are served in the same manner.”
In the charter of 1903 and in the revised charter of 1907 the power to tax the business of a baker is granted in the following language: “That the said city of Concord . . . shall have the right to levy and collect the following amounts for the privilege of doing the acts or carrying on the trades or business or exercising the privileges as follows: . . . On every baker, an annual tax not to exceed $15.00 per аnnum. Every person who shall manufacture and sell any bread, pies, cakes, or the like, shall be deemed a baker.”
Private. Laws of 1925, ch. 104, sec. 2: “That chapter three hundred and forty-four of the Private Laws of one thousand nine hundred and seven be further amended by adding after section eighty-nine a new section, to be known as 'Section eighty-nine a,’ to read as follows:
“ 'Section 89a. In addition to the powers and privileges hereinbefore conferred, the city of Concord shall have all the powers incident and usual to corporations of like character under the general laws of the State; and the amounts of tax named above which the city is authorized to levy and collect shall only be a guide and shall not be binding as to the amount of tax the city may levy on each trade, profession, business, or franchise, but the amount of tax which the city may levy and collect on each trаde, profession, business, or franchise shall be in the discretion of the board of aldermen.’ ”
Section 89 a gives the city of Concord broad powers to tax trades, professions, business, or franchise, and “the amount of tax which the city may levy and collect on each trade, profession, business, or franchise shall be in the discretion of the board of aldermen.” The prior provisions limited the power as follows: “On every baker, an annual tax not to exceed $15.00 per annum.” The further power is given: “All the powers incident and usual to corporations of like character under the general laws of the State.”
N. C. Code (1931), Michie, sec. 2677, is as follows: “The board of commissioners may annually levy and cause to be collected for municipal purposes a tax not exceeding fifty cents on the hundred dollars, and one *472 dollar and fifty cents on each poll, on all persons and property witbin the corporation, wbicb may be liable to taxation for State and county purposes ; and may annually lay a tax on all trades;, professions, and franchises carried on or enjoyed within the city, unless otherwise provided by law; and may lay a tax on all such shows and exhibitions for reward аs are taxed by the General Assembly; and on all dogs, and on swine, horses, and cattle, running at large within the town.”
The power to tax a trade is given to the General Assembly in Article Y, section 3, of the Constitution of North Carolina. The plaintiffs contend that there is no' legislative authority for the tax. Ye cannot so hоld. The charter of Concord and C. S., 2677, are
in pari materia.
They relate to the same matter and are to be construed together.
Corp. v. Motor Co.,
The plaintiffs further contend that in the charter of 1903 and the revised charter of 1907, that the authority given to tax bakers is in this language: “Every person who shall manufacture and sell any bread,” еtc., and if C. S., 2677, applies, it says: “And may annually lay a tax on all trades, professions carried on or enjoyed within the city.” We think that under a reasonable construction, the language broad enough to cover the trade plaintiffs are carrying on in the city of Concord, and not restricted to those who' manufacture and sell it in the city. C. S., 2677, supra, gives additional power.
In
Drug Co. v. Lenoir,
The opinion says, at page 573 : “It is true, as contended by the plaintiff, that the defendant derives its power to tax from legislative authority, and if it has not been conferred, it does not exist.
S. v. Bean,
“We must look, then, to the charter of the defendant (chapter 37, Private Laws 1909), and we find there that certain powers as to taxation are specifically enumerated in section 8, and it is further provided, in section 1, that the defendant, In addition to the powers and privileges hereafter specially conferred, shall have all the power incident and usual to corporations of like character under the general laws of the State.’
*473
“Chapter 73 of the Revisal is devoted to ‘Cities and Towns/ and section 2924 (now C. S., 2677,
supra),
confers thе power on them to ‘annually levy a tax on all trades, professions, and franchises carried on or enjoyed within the city, unless otherwise provided by law/ and the word ‘trade/ as used in acts to raise revenue, is defined to be ‘any employment or business embarked in for gain or profit.’
S. v. Worth,
We think plaintiffs’ trade is “cаrried on or enjoyed within the city” of Concord. To be sure its headquarters are in Charlotte, but the activities of plaintiffs are in Concord, as follows r “The plaintiffs, through a salesman, operate a truck from their plant in Charlotte to the city of Concord daily, carrying bread and other bakery produсts, and delivering the same to grocery stores and cafes in said city. The salesman collects for the bakery products at the time of delivery. From time to time customers of the plaintiffs discontinue buying bakery products from the plaintiffs, and also from time to time the salesman of the plaintiffs, by solicitation in the city of Concord, obtains new accounts, which are served in the same manner.” Where the bread is baked is immaterial, but where it is sold and where the money is collected is where the business is done and the trade carried on.
The tax by the city of Concord is on “Bakeries operating or delivering in the city, $100.00.” And further, “That every person, firm, or corporation operating or delivering bread or other bakery products in the city of Concord shall pay a tax of one hundred dollars ($100.00).”
If the plaintiffs were not required to pay this tax for the trade or business it carries on in Concord, a situation would arise thаt those living in Concord and carrying on this kind of trade or business, who paid the tax — it would injure their business, as they would have to pay a tax of $100.00 and the plaintiffs would not; consequently, the plaintiffs would undersell the Concord bakers. Such favoritism would tend to monopolise and, in time, destroy competition, which is sometimes сalled “the life of trade.”
In this ease it would tend to create a monopoly on bread, the staff of life. It is a well-recognized principle of law that a tax must be uniform. “A tax is uniform when it is equal upon all persons belonging to the described class upon which it is imposed.”
Lacy v. Packing Co.,
The plaintiffs contend that the tаx discriminates against them, and that a municipality authorized to tax a trade or business cannot tax a mere incident to that business. These contentions cannot be sustained. The factual situation is that clearly plaintiffs are plying their trade and doing business by delivering and soliciting the sale of bread in the city оf Concord. “Perpetuities and monopolies are contrary to the *474 genius of a free state, and ought not to be allowed.” Article I, section 31, Constitution of North Carolina, 1776 Declaration of Bights, sec. 23.
In
S. v. Denson,
This whole matter has been recently discussed in
Tea Co. v. Maxwell, Comr. of Revenue,
It is further contended by plaintiffs that they are taxed twice as much as a person delivering cakes or pies or doughnuts only, though the volume of business of such person may be greater than that of the plaintiffs. There is no discriminatiоn in these particular classes — the subject of these taxes. There is no’ discrimination in the ordinance between resident and nonresident persons or corporations delivering bread or other bakery products in the city of Concord. “All who bring themselves within the limits of the corporation are, whilе there, citizens so as to be governed by its laws.”
Whitfield v. Longest,
From a careful review of this case we can see no error in the judgment of the court below. It is therefore
Affirmed.