Cobb v. Commissioners of Durham County

Citations

• 30 S.E. 338
• 122 N.C. 307
• 1898 N.C. LEXIS 252

Syllabus

<p>Corporation — Franchise—Taxation — Privilege Tax— Uniformity of Taxation.</p> <p>1. The franchise tax imposed by Section 37, Chapter 168, Acts of 1897 (Revenue Act) upon every corporation doing business in the State is a tax upon the privilege of being a corporation, and its payment does not relieve'it, or its lessee, from the payment of a tax imposed upon the privilege of carrying on the particular kind of business for which the corporation was chartered; hence,</p> <p>2. Where a corporation chartered for the purpose of owning and conducting a hotel has paid the franchise tax imposed by Section 37 of the Revenue Act of 1897, the lessee of such corporation is not relieved thereby from paying the tax imposed by Section 35 of said Revenue Act upon the business of conducting a hotel.</p> <p>3. Under the provisions of Section 35, Chapter 168, Acts of 1897 (Revenue Act) hotels whose gross receipts are between 81,000 and §2,000 inclusive, per annum, must pay a tax of S10, and hotels whose gross receipts are over 82,000 must pay a tax of one-half of one per cent, upon such gross receipts.</p> <p>4. A tax is uniform and consistent with the Constitution when it is equal on all persons in the same class, and hence the graduated tax imposed on hotel keepers by Section 35 of the Revenue Act of 1897, which exempts from taxation those whose yearly receipts are less than 81,000, is not unconstitutional.</p>