Lamar Life Ins. Co. v. Board of Sup'rs of Hinds County

• Decision Date: 22 October 1934
• Docket Number: 31378
• Citation: Lamar Life Ins. Co. v. Board of Sup'rs of Hinds County, 157 So. 239, 171 Miss. 141 (Miss. 1934)
• Parties: LAMAR LIFE INS. CO. v. BOARD OF SUP'RS OF HINDS COUNTY
• Court: Mississippi Supreme Court

157 So. 239

171 Miss. 141

LAMAR LIFE INS. CO. v. BOARD OF SUP'RS OF HINDS COUNTY

No. 31378

Supreme Court of Mississippi

October 22, 1934

Division B

Suggestion Of Error Overruled December 3, 1934.

APPEAL from the circuit court of Hinds county HON. W. H. POTTER Judge.

Proceeding by the state tax collector, instituted before the board of supervisors of Hinds county, to back assess real estate owned by the Lamar Life Insurance Company, resulted in an order making assessment, and the Lamar Life Insurance Company appealed to the circuit court. From a judgment in favor of the board of supervisors of Hinds county, the Lamar Life Insurance Company appeals. Affirmed.

Affirmed.

L. Barett Jones and Wells, Wells & Lipscomb, all of Jackson, for appellant.

The protest of the Lamar Life Insurance Company against the assessment, and the appeal here taken from the judgment of the circuit court of Hinds county is based on the exemption granted to domestic insurance companies by chapter 261, Laws of 1926, section 5160, Mississippi Code of 1930.

Chapter 261, Laws of 1926, section 5160, Mississippi Code of 1930, is constitutional.

W. J. Miller, State Tax Collector, v. Lamar Life Insurance Co., 131 So. 282, 158 Miss. 753; Blake v. McClung, 172 U.S. 239, 19 S.Ct. 165, 173, 43 L.Ed. 432.

Section 5143, Mississippi Code of 1930, provides what real estate may be acquired, held and conveyed by domestic insurance companies.

It is difficult for us to see what contention or argument can be raised by appellee on the right of the insurance company to hold title to the property attempted to be assessed.

To say that The Lamar Life Insurance Company under the provisions of section 5143, Code of Mississippi of 1930, is prohibited from owning a reasonable amount of land surrounding its home office building for the purpose of assuring perfect lighting and air circulation in the offices, is an absurdity.

The Legislature in authorizing domestic insurance companies to purchase, hold, and sell certain real estate recognized that the company should not be limited to the actual land on which the home office building is constructed; had that been the intention of the Legislature, there would have been no reason for it to have added sections two and three of section 5143.

4 Thompson on Corporations (3 Ed.), chapter 88, sections 2450 and 2467.

Statutes limiting the right of a corporation to own real estate must be given a reasonable construction.

Commonwealth v. Mengel Box Co., 153 S.W. 771; Dauchy Iron Works v. S. H. Gunder, 150 Ill.App. 604; Klein v. Independent Brewing Association, 83 N.E. 434; Proprietors of Claremont Bridge v. Royce, 42 Vt. 730; Mallett v. Simpson, 94 N.C. 37; Revenue Statute Missouri, 1899, sec. 971, Anno. Stat. 906, p. 862; Lee v. W. D. Hayden Company, 48 S.W.2d 476; Gratton v. Gratton's Estate et al., 283 P. 747; State v. Long-Bell Lumber Co., 12 S.W.2d 67.

Real estate owned by corporations for future or contingent needs need not remain idle.

4 Thompson on Corporations (3 Ed.), sec. 2474; People v. Pullman Palace Car Co., 175 Ill. 125, 51 N.E. 664, 64 L. R. A. 366; Spear v. Crawford (N. Y.), 14 Wend. 20, 28 Am. Dec. 513; Union Pacific Railroad Company v. Chicago, etc., 51 F. 309; Benton v. Elizabeth, 61 N. J. Laws, 411, 39 A. 683; Brown v. Winnisimmet Co. (Mass.), 11 Allen 326; Wingert v. First National Bank, 175 F. 739, 223 U.S. 672, 56 L.Ed. 605; Brown v. Schleier et al., 118 F. 981.

May, Sanders, McLaurin & Byrd, of Jackson, for appellee.

Our contention is, and it is not denied, that the land in question is not the land on which the company has its principal office and is not the land on which the principal office building stands. And it is our further contention that the proof does not show that the land in question is requisite for the convenient accommodation of the business of the company.

Section 5143, Code of 1930.

Section 5150 of the Code of 1930 provides, among other things, that domestic life insurance companies shall be exempt from all taxes except premium taxes, but we say that this statute must be construed in connection with the other statutes with reference to insurance companies, which define and limit the lands which insurance companies may own.

We are not here concerned with any attempt to forfeit the land or to challenge the right of the company to own the same, but we are contending, and the lower court so held, that if it was property which the company was not entitled to own, then it is taxable.

Gunter v. City of Jackson, 130 Miss. 686; Enochs et al. v. City of Jackson, 144 Miss. 360.

The burden of proof was on the company to bring itself within the exemption provided by the statute.

Greenville Ice & Coal Company v. City of Greenville, 69 Miss. 86; Brick & Lumber Co. v. Miller, 123 Miss. 850.

OPINION

Anderson, J.

The state tax collector instituted this proceeding before the board of supervisors of Hinds county to back assess for state and county ad valorem taxes certain real estate owned by appellant. The board of supervisors made the assessment and fixed the valuation of the property at twenty thousand dollars for the back years. From that order there was an appeal to the circuit court where there was a trial anew, resulting in a judgment in favor of the county, from which judgment appellant prosecutes this appeal.

Appellant is a domestic insurance company and claims that the property is exempt from taxation under section 5160, Code of 1930. That statute provides that domestic insurance companies shall be exempt from all taxes of every kind and character--state, county, municipal, and other taxing districts--except the privilege taxes imposed by the two succeeding sections and state income taxes provided for by the income statute. The county concedes that if the appellant has the right under the law to own the property, it comes within the exemption provided by section 5160.

Section 5143, Code of 1930, provides what real estate domestic insurance companies may own. That section follows:

"A domestic company may acquire, hold and convey real estate for the purpose and in the manner only following:

"(1) The building in which it has its principal office and the land on which it stands.

"(2) Such as shall be requisite for its convenient accommodation in the transaction, enlargement and advancement of its business.

"(3) Such as shall have been acquired for the accommodation of its business. Provided, however, the said real estate so described in subsections one, two and three shall not exceed in value, as evidenced by its original purchase price including any incumbrance thereon, twenty-five per cent of admitted assets of such company.

"(4) Such as shall have been mortgaged to it in good faith by way of security for loans previously contracted...