In re Opinion of the Justices

Citation154 A. 632
PartiesIn re OPINION OF THE JUSTICES.
Decision Date03 March 1931
CourtSupreme Court of New Hampshire

Questions by the House of Representatives to the Justices of the Supreme Court as to the constitutionality of a section of an income tax bill.

Questions answered.

See, also, 149 A. 321.

Elwin L. Page, of Concord, for the bill.

"Whereas, there is before the House of Representatives a bill imposing a tax upon personal and corporate incomes, on which the Supreme Court of the State has heretofore advised the legislature in part, but on which there is doubt of the constitutionality of other parts;

"Whereas, it is important that the constitutionality of the whole should be settled in advance of enactment to protect the interests of the state and its people; Now therefore, be it

"Resolved, that the Speaker of the House of Representatives be and hereby is directed to obtain from the Justices of the Supreme Court their opinion upon the following questions?

"1. Would any constitutional provision be violated in ascertaining taxable net income by the deduction of all the ordinary and necessary expenses paid during the income year in carrying on income producing activities as provided in paragraph a, section 10 of House Bill No. 28?

"2. Would any constitutional provision be violated in ascertaining taxable net income by allowing the deduction of all ordinary and necessary living expenses of the tax payer required to keep him and his family in life as an income producing and tax paying entity, as provided in paragraph b, section 10 of House Bill No. 28, and avoiding the necessity of requiring the keeping of accurate accounts of income and expenses in a great majority of cases by setting up an arbitrary minimum of income as equaling the ordinary and necessary living expenses?"

The paragraphs referred to read as follows.

"10. Deductions. In computing net income there shall be allowed as deductions:

"(a) All the ordinary and necessary expenses paid during the income year in carrying on income-producing activities, including a reasonable allowance for salaries or other compensation paid by the taxpayer to others for personal services actually rendered, rentals or other payments required to be made as a condition to the continued use of possession, for the purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity; and in the case of individuals traveling expenses while away from home in pursuit of income-producing...

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3 cases
  • Colgate v. Harvey
    • United States
    • United States State Supreme Court of Vermont
    • November 14, 1934
    ...Mass. 593, 170 N. E. 800, 803. It may allow reasonable deductions of business expenditures from business income. In re Opinion of the Justices, 85 N. H. 570, 154 A. 632, 633; State v. Wisconsin Tax Commission, 185 Wis. 525, 201 N. W. 764, 766. It may provide for a graduated progressive rate......
  • James C. Colgate v. Erwin M. Harvey
    • United States
    • United States State Supreme Court of Vermont
    • November 14, 1934
    ......32] after the March Term, 1933,. Washington County, Bicknell, J., presiding. Judgment. for the defendant. The plaintiff excepted. The opinion states. the case. Affirmed. . . .          . Judgment affirmed. . . .           Theriault & Hunt (E. J. Dimock of ...City of Burlington, supra; Equitable. Finance Co. v. Board of Supervisors, 146 Miss. 734, 111. So. 871; Opinions of the Justices, 76 N.H. 609. . .          . Exemption of credit from taxation is not the exemption of. property and does not violate a ......
  • Franko v. Oh. Chem. & Mfg. Co., 96.
    • United States
    • United States State Supreme Court (New Jersey)
    • April 17, 1931
    ......        PER CURIAM.         The judgment under review herein should be affirmed for the reasons 'expressed in the opinion delivered per curiam in the Supreme Court, 150 A. 221, 8 N. J. Misc. Rep. 376.         For affirmance: The CHIEF JUSTICE, Justices PARKER, ......

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