Hunter v. Wright

• Decision Date: 20 January 1930
• Docket Number: 7009.
• Citation: 152 S.E. 61,169 Ga. 840
• Parties: HUNTER et al. v. WRIGHT, Comptroller General.
• Court: Georgia Supreme Court

152 S.E. 61

169 Ga. 840

HUNTER et al. v. WRIGHT, Comptroller General.

No. 7009.

Supreme Court of Georgia

January 20, 1930

Motion to Rehear Denied March 1, 1930.

Syllabus by the Court.

The exemption of railroad ticket agents who may write accident insurance from the operation of the occupation taxes imposed by the General Tax Act of 1927 (Laws 1927, p. 56) is not such an exercise of the power of classification inherent in the General Assembly as can be held to be unreasonable or arbitrary, and therefore violative of article 1, § 2, par. 7 of the Constitution of this state. Nor is this exercise of the power of classification on the part of the General Assembly violative of the due process clause of the Fourteenth Amendment to the Constitution of the United States.

The court did not err in refusing an injunction.

Error from Superior Court, Fulton County; E. E. Pomeroy, Judge.

Petition by N. A. Hunter and others against W. A. Wright, Comptroller General and ex officio Insurance Commissioner. Judgment for defendant, and plaintiffs bring error. Affirmed.

Atkinson J., dissenting.

Exemption of railroad ticket agents writing accident insurance from occupation taxes held not unconstitutional as unreasonable or arbitrary classification. General Tax Act 1927, p. 74, § 2 par. 58; Const. art. 1, § 2, par. 7.

On January 28, 1928, N. A. Hunter, L. O. Wright, A. J. Wright Rufus Pritchett, N. R. Glenn, L. Z. Gordon, J. T. Wilkerson, and C. F. Mitchell filed a petition seeking injunctive relief against the comptroller general and ex officio insurance commissioner of Georgia. The petition alleges that the petitioners are engaged in and carrying on the business of insurance agents; "that petitioners are respectively local agents, superintendents, managers, and solicitors for various industrial life and accident insurance companies, and this petition is filed in behalf of petitioners and of such other persons similarly situated as may elect to join herein." Part of the General Tax Act of 1927 (Ga. L. 1927, pp. 56, 74) is set forth as follows:

"Paragraph 58. Insurance Agents. (a) Upon each and every local insurance agent, and upon each and every solicitor or subagent, for any resident or non-resident life, fire, marine, accident, casualty, liability, indemnity, fidelity, bonding or surety insurance company doing business in this State, $10.00, payable to the Insurance Commissioner, for each county in which said agent, solicitor, or subagent shall transact or solicit business. (b) Upon each and every local insurance agent, and upon each and every solicitor or subagent, for any resident or non-resident assessment life-insurance company, or industrial life, accident, or sick-benefit insurance company, live-stock insurance company or fire and storm co-operative assessment fire-insurance companies doing business in this State, $10.00 payable to the Insurance Commissioner, for each county in which said agent, solicitor, or subagent shall transact or solicit business. (c) Upon each and every general, special, traveling, state, or district agent, or manager, or assistant manager, by whatever name he may be designated in his contract, of any resident or non-resident life, fire, marine, accident, casualty, liability, indemnity, fidelity, bonding or surety insurance company, doing business in this State, $100.00 payable to the Insurance Commissioner, whose receipt shall authorize the person named therein to go into any county in the State without the payment of an additional tax. (d) Upon each and every general, special, traveling, state, or district agent, manager, district manager, assistant manager, superintendent, or assistant superintendent, by whatever name he may be designated in his contract, of any resident or non-resident assessment life-insurance company, or industrial life, accident, or sick-benefit insurance company, or live-stock insurance company, doing business in this State, $100.00 payable to the Insurance Commissioner, whose receipt shall authorize the person named therein to go into any county in the State without the payment of an additional tax. (e) Upon all adjustment bureaus employing adjustors, a tax of $50.00 for each person who adjusts any loss, said tax payable to the Insurance Commissioner, whose receipt shall authorize the person named therein to go into any county in the State. (f) Upon each and every person not connected with an adjustment bureau, who adjusts insurance losses, $50.00 payable to the Insurance Commissioner, whose receipt shall authorize the person named therein to go into any county in the State. Provided, that this tax shall not apply to local insurance agents who adjust losses without remuneration. (g) The occupation taxes imposed by this paragraph must be paid in advance by said agents to the Insurance Commissioner, for the fiscal year for which they are levied, before said agent shall be authorized to act as agent for any insurance company. Provided, that railroad-ticket agents selling accident tickets shall not be deemed insurance agents in the sense of this paragraph."

In the petition it is alleged, in substance, as follows: Petitioners are engaged in the insurance business, and their duties and positions bring them under the taxing provision, but do not bring them under either class of the exemptions set up in subparagraphs (f) and (g). The companies for which petitioners work have paid all corporation taxes and gross revenue taxes required of insurance companies. The provision "that this tax shall not apply to local insurance agents who adjust losses without remuneration" destroys the uniformity of operation of the tax imposed, and renders it unconstitutional because violative of paragraph 1 of section 2 of article 7 of the Constitution of Georgia, which declares that "all...