Miller v. Lamar Life Ins. Co.

• Decision Date: 24 November 1930
• Docket Number: 28803-28805
• Citation: 158 Miss. 753,131 So. 282
• Parties: MILLER, STATE TAX COLLECTOR, v. LAMAR LIFE INS. CO. SAME v. MISSISSIPPI FIRE INS. CO. SAME v. BANKERS' & MERCHANTS' FIRE INS. CO
• Court: Mississippi Supreme Court

131 So. 282

158 Miss. 753

MILLER, STATE TAX COLLECTOR, v. LAMAR LIFE INS. CO.

SAME v. MISSISSIPPI FIRE INS. CO.

SAME v. BANKERS' & MERCHANTS' FIRE INS. CO

Nos. 28803-28805

Supreme Court of Mississippi

November 24, 1930

Division A

SAME v MISSISSIPPI FIRE INS. CO. SAME v. BANKERS' &amp MERCHANTS' FIRE INS. CO. (Division A.)

1 TAXATION. Interest-bearing securities and solvent credits acquired by domestic insurance corporation in making loans held exempt from ad valorem, taxes (Laws 1922, chapter 184; Laws 1926, chapter 261; Code 1930, section 5152).

Laws 1922, chapter 184, granted exemption to domestic insurance corporations from all taxes of whatsoever kind or nature except ad valorem taxes on realty and privilege taxes for a period of five years. Laws 1926, chapter 261, removed five-year limitation in exemption previously granted and enlarged exemption to include ad valorem taxes on realty.

2 STATUTES. Statute exempting domestic insurance corporations from ad valorem taxes held not unconstitutional as amending law by reference to title only (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. 1890, section 61.)

Constitution 1890, section 61, provides that no law shall be revived or amended by reference to its title only, but the section or sections as amended or revived shall be inserted at length.

3. STATUTES. Statutes exempting domestic insurance corporations from ad valorem taxes held not invalid as special law or suspension of general laws for benefit of corporations (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. 1890, section 87).

Constitution 1890, section 87, provides that no special or local laws shall be enacted for benefit of individuals or corporations in cases which are or can be provided for by general law, nor shall the operation of any general law be suspended for benefit of any individual or private corporation or association in all cases where general law can be made applicable and would be advantageous.

4. STATUTES. Statutes exempting domestic insurance corporations from ad valorem taxes held not invalid as special law exempting property from taxation (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. 1890, section 90(h)).

Constitution 1890, section 90(h), prohibits Legislature from passing any local, private, or special laws exempting property from taxation or from levy or sale, and requires such matters to be provided for only by general laws.

5. TAXATION.

Statutes exempting domestic insurance corporations from ad valorem taxes held not to violate constitutional provision requiring uniformity and equality in matters of taxation (Laws 1922, chapter 184; Laws 1926, c. 261; Const. 1890, section 112).

6. TAXATION. Statutes exempting domestic insurance corporations from ad valorem taxes held not violative of constitutional provision requiring property of private corporations to be taxed same as individuals' (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. 1890, section 181).

Constitution 1890, section 181, requires property of all private corporations for pecuniary gain to be taxed in same way and to same extent as property of individuals, with certain exceptions.

7. TAXATION. Statutes exempting domestic insurance corporations from ad valorem taxes held not invalid as surrender of power to tax corporations (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. 1890, section 182).

Constitution 1890, section 182, provides that the power to tax corporations and their property shall never be surrendered or abridged by any contract or grant to which the state or any political subdivision thereof may be a party, with certain exceptions.

8. STATUTES. Statutes exempting domestic insurance corporations from ad valorem taxes held not violative of Constitution authorizing general law whereby municipalities may exempt public utility enterprises from taxation (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. 1890, section 192).

Constitution 1890, section 192, requires provision to be made by general laws whereby cities and towns may be authorized to aid and encourage establishment of public utility enterprises within their limits by exempting all property used for such purposes from municipal taxation for a period not longer than ten years.

9. CONSTITUTIONAL LAW. Statutes exempting domestic insurance corporations from ad valorem taxes held not invalid as violation of privileges and immunities clause in Federal Constitution (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. U.S. article 4, section 2, clause 1).

Under statutes of Mississippi regulating insurance business, individuals cannot engage in such business, but it can only be carried on by corporations or associations that are for all practical purposes incorporate.

10. CONSTITUTIONAL LAW.

Generally, party not within class affected by enforcement of statute cannot question alleged discrimination and consequent invalidity.

11. CONSTITUTIONAL LAW.

Where there is no probability of validity of statute being challenged by one of class discriminated against or decision on validity would not be necessary, one not within class may question validity.

12. CONSTITUTIONAL LAW.

State tax collector held entitled to challenge validity of statutes exempting domestic insurance corporations from ad valorem taxes (Laws 1922, chapter 184; Laws 1926, chapter 261).

13. TAXATION.

Classification for purposes of taxation is within province of Legislature.

14. CONSTITUTIONAL LAW.

Classification for purposes of taxation, if not wholly unreasonable and arbitrary, and statute is uniform in operation, does not deny equal protection of laws guaranteed by Federal Constitution (Const. U.S. Amend. 14).

15. TAXATION.

Exemption of property from taxation must be based on some principle of public policy supporting presumption that public interest will thereby be subserved.

16. CONSTITUTIONAL LAW.

Classification of property for exemption from taxation must be based on some reasonable ground and real difference which bears just relation to object (Const. U.S. Amend. 14).

17. CONSTITUTIONAL LAW.

Legislature in first instance is judge of necessity for exemption from taxation and reasonableness of classification for that purpose (Const. U.S. Amend. 14).

18. CONSTITUTIONAL LAW.

Statutes exempting domestic insurance corporations from ad valorem taxes held not to deny equal protection of laws based on arbitrary and unreasonable classification (Laws 1922, chapter 184; Laws 1926, chapter 261; Const. U.S. Amend. 14).

HON. W. H. POTTER, Judge.

APPEAL from circuit court of First district of Hinds county, HON. W. H. POTTER, Judge.

Three separate proceedings by W. J. Miller, as State Tax Collector, against the Lamar Life Insurance Company, against the Mississippi Fire Insurance Company, and against the Bankers' & Merchants' Fire Insurance Company, heard together. From a judgment of the circuit court for the insurance companies, on appeal from a decision of the Board of Supervisors, the State Tax Collector appeals. Affirmed.

Judgment affirmed.

Franklin, Easterling & Rosenthal, of Jackson, for appellant.

The tax levied by the Acts of 1922 and 1926 is clearly an excise tax.

26. R. C. L. 35; Equitable Life Assur. Society v. Pa., 238 U.S. 143, 35 S.Ct. 829, 59 L.Ed. 1239; Ins. Co. of N. A. v. Comm., 87 Pa. St. 173, 30 Am. St. Rep. 352; Mutual Reserve, etc., Ins. Co. v. Augustus, 109 Ga. 73, 35 S.E. 71; Mass. Bonding & Ins. Co. v. Chorn (Mo.), S.W. 1122; Iowa, etc., Ins. Ass'n v. Gilbertson, 106 N. W. 153, 127 Iowa 658; Scottish Union, etc., Ins. Co. v. Harriotte, 109 Iowa 606, 77 A. S. R. 548.

The exemption granted by the Acts of 1922 and 1926 cannot be held to mean or include an exemption from the ad valorem tax on money loaned at a greater rate of interest than six per cent per annum.

State to the Use of the City of Memphis v. Home Ins. Co., 19 S.W. 1042; State to the Use of City of Memphis v. Phoenix Fire & Marine Ins Co., 19 S.W. 1044; State to the Use of the City of Memphis v. Memphis City Bank, 19 S.W. 1045; Insurance Co. v. The Board of Assessors of St. Louis County, 56 Mo. 503; America v. The Board of Assessors of St. Louis County, 49 Mo. 512; Associated Producers Co. v. Board of Supervisors of Estelle County, 260 S.W. 335.

The rule is universal that he who claims exemption must show affirmatively an exemption expressly declared, and that the claimant is clearly embraced within the terms of the exemption.

Morris Ice Company v. Adams, 75 Miss. 410, 22 So. 944; Gulfport Building & Loan Association v. City of Gulfport, 124 So. 658; New Standard Club v. McRaven, 111 Miss. 92, 71 So. 289; Barnes v. Jones, 139 Miss. 635, 103 So. 773.

The Acts of 1922 and 1926 are violative of Sections 61, 87, 90, 112, 181, 182, 192, of the Constitution of 1890.

Millers Mutual Fire Ins. Co. v. City of Austin, 210 S.W. 285; Northwestern Mutual Life Ins. Co. v. Lewis and Clarke County, 28 Mont. 484, 72 P. 982, 98 Am. St. Rep. 572; Hawkeye Ins. Co. v. French (Iowa), 80 N.W. 660; State v. Fleming, Tax Com'r (Neb.), 97 N.W. 1063, 1069.

The exemption granted by the Act of 1926 and the Act of 1922 must necessarily be limited to exempt only that property which is essential to the insurance business and none other.

37 Cyc., 839, 887, 888; Flint v. Stone-Tracey Co., 55 L.Ed. (U.S.) 413.

Under the acts 1922 and 1926, domestic insurance companies claim to be exempt from ad valorem taxes on all personal property and under the Act of 1926, from all real property also. Foreign insurance companies are required to pay ad valorem taxes on all property in the state, real and personal. The law, therefore, violates the due process and equal protection clauses of the 14th Amendment and Article 4 Sec. 2, Clause 1, of the Federal...