3 Cal.2d 83, 14732, Connecticut Gen. Life Ins. Co. v. Johnson

Docket Nº:14732
Citation:3 Cal.2d 83, 43 P.2d 278
Opinion Judge:[9] Preston
Party Name:Connecticut Gen. Life Ins. Co. v. Johnson
Attorney:[7] Raymond Benjamin and Hartley F. Peart for Appellant. [8] U. S. Webb, Attorney-General, and Neil Cunningham, Deputy Attorney-General, for Respondent.
Case Date:April 02, 1935
Court:Supreme Court of California
 
FREE EXCERPT

Page 83

3 Cal.2d 83

43 P.2d 278

CONNECTICUT GENERAL LIFE INSURANCE COMPANY (a Corporation), Appellant,

v.

CHARLES G. JOHNSON, as Treasurer, etc., Respondent.

CONNECTICUT GENERAL LIFE INSURANCE COMPANY (a Corporation), Appellant,

v.

CHARLES G. JOHNSON, as Treasurer, etc., Respondent.

S. F. No. 14732., S. F. No. 14733.

Supreme Court of California

April 2, 1935

In Bank.

Page 84

COUNSEL

Raymond Benjamin and Hartley F. Peart for Appellant. U.S. Webb, Attorney-General, and Neil Cunningham, Deputy Attorney-General, for Respondent.

Page 85

OPINION

PRESTON, J.

This cause is styled a consolidated action by plaintiff, a life insurance corporation, organized under the laws of the state of Connecticut, to recover from the state of California, through the treasurer thereof, certain sums alleged to be overpayments of taxes, made involuntarily under article XIII, section 14 (b) of the California Constitution, which states the rate base for the calculation of such taxes to be the total gross premiums received by the corporation during the period involved from insurance business done in this state. Defendant's demurrer to the complaint in each case was sustained without leave to amend and judgment passed for him. Plaintiff appealed.

The controversy arises over the propriety of the state's action in including within the tax base certain payments made without the state by original insurers to plaintiff at its home office, for reinsurance respecting risks assumed and policies issued and delivered in California. The case brings to the foreground the proper interpretation of the above-mentioned section of the Constitution, which, so far as here material, reads:

"Every insurance company or association doing business in this state shall annually pay to the state a tax of ... per cent upon the amount of the gross premiums received upon its business done in this state, less return premiums and reinsurance in companies or associations authorized to do business in this state; provided, that there shall be deducted from said ... per cent upon the gross premiums the amount of any county and municipal taxes paid by such companies on real estate owned by them in this state. This tax shall be in lieu of all other taxes and licenses, state, county and municipal, upon the property of such companies, except county and municipal taxes on real estate, and except as otherwise in this section provided; provided, that when by the laws of any other state or country, any taxes, fines, penalties, licenses, [43 P.2d 279] fees, deposits of money, or of securities, or other obligations or prohibitions, are imposed on insurance companies of this state, doing business in such other state or country, or upon their agents therein, in excess of such taxes, fines, penalties, licenses, fees, deposits of money, or of securities, or other obligations or prohibitions, imposed upon insurance companies of such other state or

Page 86

country, so long as such laws continue in force, the same obligations and prohibitions of whatsoever kind may be imposed by...

To continue reading

FREE SIGN UP