135 So. 346 | Ala. | 1931
Section 54 of the Revenue Act of 1927 (Gen. Acts 1927, p. 176) says: "That every corporation organized under the laws of any other state, nation, or territory, and doing business in this State, except strictly benevolent, educational or religious corporations, shall pay annually to the State an annual franchise tax of Two Dollars ($2.00) on each One Thousand Dollars of the actual amount of capital employed in this State. In ascertaining the annual franchise tax whichshall be paid by any foreign corporation doing business in thisState under this section, there shall be deduced from theamount of the capital employed by such corporation in thisState the aggregate amount of loans of money made by suchcorporations in this State, and which shall be secured byexisting mortgage or mortgages to it on real estate in thisState, and upon which mortgages there shall have been paid therecording privilege tax provided by law." (Italics supplied.)
The question is, does the last or italicized portion render the same violative of section
The advisory opinion of this court to the Court of Appeals, State v. Elba Bank Trust Co.,
The case of Ellis v. W. A. Handley Mfg. Co.,
Item (c) of $331,119, represents cash paid to the policyholder representing all or a part of his equity in the assets of appellant. It is, in a sense, a withdrawal by the policyholder of a portion of the reserve on his policy for which the company is bound, and there is no personal liability, it is not a loan or credit on which the company can be taxed as such, and this is not affected by the fact that the policyholder gives a note upon which interest is necessarily charged to adjust the account. Board of Assessors of Orleans v. New York Life Ins. Co.,
Item (d) represents $1,280,604.91 Alabama bonds. These bonds were purchased by the insurance company from holders or brokers outside of the state of Alabama, and the transaction was completed and the bonds continuously held from the time of their delivery by the company as a part of its general treasury assets at the home office at Philadelphia. The amount of the purchase was not allocated by any corporate action to appellant's business in the state of Alabama. Each purchase was made on individual consideration of its merits along with the purchase of U.S. Government and other bonds. This item was also properly excluded by the trial court.
Item (e) of $1,500 represents the tangible property employed in its office in the state of Alabama, and the action of the trial court in including same is not questioned upon this appeal.
Mention is made in briefs of "Bank Deposit in Transit," but this item seems not to have been presented to or passed upon by the trial court and, as an appellate court, the question is not before us.
The decree of the circuit court is reversed and rendered on direct appeal, and affirmed upon cross-appeal.
Affirmed in part, and reversed and rendered in part.
GARDNER, BOULDIN, and FOSTER, JJ., concur.