Holly Springs Savings & Insurance v. Board of Supervisors

Citations

• 52 Miss. 281

Syllabus

<p>1. Taxes : Privileges. Capital stock. United States securities.</p> <p>Where a tax is imposed upon the capital stock of an incorporated company, regardless of its value, it is a tax upon the privilege of carrying on the business, and is valid and constitutional although the entire capital consists of non-taxable securities. Aliter, -where the tax is imposed upon the value of the capital stock as property.</p> <p>2. Non-taxability oe United States Securities : Temporary and permanent investments.</p> <p>The non-taxability of the bonds and other securities of the federal government constitutes, and was intended to constitute, a large element of their value, and this immunity from taxation will exist, though it constituted the inducement to their purchase and the investment was not intended to be permanent; but where the capital of a banking corporation, used in its daily business, is converted a few days before the day of assessment into such securities for the express purpose of evading taxation, and with the fixed intention of reconverting it as soon as the day of assessment is passed, such investment is colorable and fraudulent, and the capital is liable to taxation.</p> <p>3. Constitutional Law: Inviolability of contracts. Vested rights.</p> <p>By act of 1867 a certain rate of taxation was imposed upon all insurance companies then in existence or thereafter chartered. Thereafter plaintiff in error was incorporated, and, by formal resolution, accepted the provisions of said act. By a subsequent law the rate of taxation was increased. Held, that the first act constituted no part of the charter of plaintiff in error, and could not be made so by their resolution purporting to accept it; that it was a mere declaration of legislative will, repealable at pleasure.</p>