157. Franchise tax to be laid upon telegraph and certain other companies.

["An act to provide for the imposition of state taxes upon certain corporations and for the collection thereof." Approved April 18th, 1884. P. L., p. 232.]

SEC. 1. Every telegraph, telephone, cable or electric light company, every express company, not owned by a railroad company and otherwise taxed, every gas company, palace or parlor or sleeping car company, every oil or pipe-line company, and every fire, life, marine or accident insurance company, doing business in this state, except mutual fire insurance companies which do not issue policies on the stock plan, shall pay an annual tax, for the use of the state, by way of a license for its corporate franchise, as hereinafter mentioned; provided, however, that no company or society shall be construed to be a life insurance company doing business in this state within the purview of this act, which by its act or certificate of incorporation, shall have for its object the assistance of sick, needy or disabled members, the defraying of funeral expenses of deceased members, and to provide for the wants of the widows and families of members after death.

158. Annual reports by certain companies to state board of assessors.

SEC. 2. On or before the first Tuesday of May next, and annually thereafter, it shall be the duty of the president, treasurer or other proper officer of every corporation of the character specified in the preceding section, to make report to the state board of assessors, appointed and to be appointed under the act entitled "An act for the taxation of railroad and canal property," stating specifically the following particulars, namely: Each telegraph, telephone, cable and express company, not owned by a railroad company and otherwise taxed, shall state the gross amount of its receipts from business done in this state for the year preceding the first day of January prior to the making of such report; each electric light company shall state the gross amount of its receipts for light or power supplied within this state for the year preceding the first day of February prior to the making of such report; each gas company shall state the gross amount of its receipts for business done in this state during the same time, and the amount of dividends earned or declared for the same period; each parlor, palace or sleeping car company shall state the gross amount of its receipts for fare or tolls for transportation of passengers within this state during the same time; each oil or pipe-line company engaged in the transportation of oil or crude petroleum shall state

the gross amount of its receipts from the transportation of oil or petroleum through its pipes or in and by its tanks or cars in this state during the same time; each fire, marine or accident insurance company shall state the total amount of premiums received by it for insurance upon the lives of persons resident or property located within this state, during the same time.

159. Penalties for false statement, or neglect to make statement.

SEC. 3. If any officer of any company required by this act to make a return as aforesaid, shall, in such return, make a false statement, he shall be deemed guilty of perjury; if any such company shall neglect or refuse to make such return within the time limited as aforesaid, the state board of assessors shall ascertain and fix the amount of such receipts in such manner as may be deemed by them most practicable, and the amount fixed by them shall stand as the basis of taxation of such company under this act.

160. Amount of franchise tax to be paid by certain companies.

[This section is given as amended by supplement of March 16th, 1891. P. L., p. 150.]

to

Each telegraph, telephone, cable and express company shall pay to the state a tax at the rate of two per centum upon the gross amount of its receipts so returned or ascertained; that each gas company and electric light company shall pay to the state a tax at the rate of one-half of one per centum upon the gross amount of its receipts so returned or ascertained, and five per centum upon the dividends of said company in excess of four per centum so earned or declared; that each oil or pipe-line company shall pay the state a tax at the rate of eight-tenths of one per centum upon the gross amount of its receipts so returned or ascertained; (m) that each insurance company other than life shall pay to the state a tax at the rate of one per centum upon the gross amount of its premiums so returned or ascertained; that each life insurance company incorporated under the laws of this state shall pay to the state an annual franchise tax of one per centum upon the amount of its surplus, on the thirty-first day of December next preceding the time of such payment as fixed in section five, as the same shall be ascertained by the commissioner of insurance of this state, according to the actuaries' table of mortality, and four per centum

(m) Foreign corporations doing business in this state are subject to the tax. Pipe Line Co. v. Berry, 23 уr. 308.

interest; that each life insurance company not incorporated under the laws of this state, or of any other state or territory of the United States, but doing business in this state, shall pay to the state an annual tax of two per centum on the amount of premiums collected during the year ending December thirty-first as aforesaid, from residents of this state, except on the amount of premiums collected from industrial insurance, on which amount each company shall pay to the state an annual tax of one per centum per annum, deducting from said premiums the amount of dividends actually allowed in rebate of the same, and the amount paid during said year to residents of this state for claims under matured policies; the secretary of state, acting as the commissioner of insurance, shall ascertain and report to the state board of assessors all the facts necessary to enable the board to ascertain and fix the amount of tax to be paid by life insurance companies under this act; that each parlor, palace or sleeping car company shall pay to the state treasurer a tax at the rate of two per centum upon the gross amount of its receipts so returned or ascertained; if any oil or pipe line company has part of its transportation line in this state and part thereof in another state or states, such company shall return a statement of its gross receipts for transportation of oil or petroleum over its whole line, together with a statement of its whole length of line and the length of its line in this state; such company shall pay tax to the state, at the aforesaid rate, upon such proportion of its said gross receipts as the length of its line in this state bears to the whole length of its line; that all other corporations incorporated under the laws of this state, and not hereinbefore provided for, shall pay a yearly tax(n) of one-tenth of one per centum on all amounts of capital stock issued and outstanding, up to and including the sum of three million dollars; on all sums of capital stock issued and outstanding over three million dollars, and not exceeding five million dollars, a yearly tax of one-twentieth of one per centum, and the further sum of fifty dollars per annum per one million dollars, or any part thereof, on all amounts of capital stock issued and outstanding in excess of five million dollars; provided, that this act shall not

(n) This tax is a license or franchise tax. It is not a tax on property, and not within the equality clause (Art. IV., 7, ¶ 12), of the constitution. Standard Underground Cable Co. v. Attorney General, 1 Dick. Ch. Rep. 270. A manufacturing company, which has an office and procures materials here, but carries on the manufacture of its special product out of this state, is taxable. Ibid.

apply to railway, canal or banking corporations, or to savings banks, cemeteries or religious corporations, or to purely charitable or educational associations, or manufacturing (o) or mining corporations, at least fifty per centum of whose capital stock issued and outstanding is invested in mining or manufacturing carried on within this state; if any manufacturing or mining company carrying on business in this state shall have less than fifty per centum of its capital stock issued and outstanding invested in business carried on within this state, such company shall pay the tax herein provided for companies not carrying on business in this state, but shall be entitled, in the computation of such tax, to a deduction from the amount of its capital stock of the assessed value of its real and personal estate so used in manufacturing or mining.

161. Proceedings of state board of assessors.

SEC. 5. The state board of assessors shall certify and report to the comptroller of the state, on or before the first Monday of June in each year, a statement of the amount of gross receipts as returned by each company to, or ascertained by the said board, and the amount of tax due thereon respectively, at the rate fixed by this act; such tax shall thereupon become due and payable, and it shall be the duty of the state treasurer to receive the same; if the taxes of any company remain unpaid on the first day of July, after the same become due, they shall thenceforth bear interest at the rate of one per centum for each month until paid; the state board of assessors shall have power to require of any corporation subject to tax under this act, such information or reports touching the affairs of such company, as may be necessary to carry out the provisions of this act, and may require the production of abstracts of the books of such companies; and may swear and examine witnesses in relation thereto; the comptroller shall receive as compensation for his services under this act and under the act entitled "An act for the taxation of railroad and canal property," approved April tenth, eighteen hundred and eighty-four, the sum of five hundred dollars annually.

(0) The question is in what business is the capital of the company invested, and not what are the objects expressed in its certificate of incorporation. The printing and publishing of a new paper is not manufacturing, but the business of book-printing, engraving, electrotyping and lithographing is manufacturing within the meaning of the act. Evening Journal Association v. State Board of Assessors, 18 Vr. 36; Printing Co. v. Assessors, 22 Id. 75; Am. Glucose Co. v. New Jersey, 16 Stew. Eq. 280; New Jersey v. Soc. for Estab. Useful Manf., 16 Id. 410; Standard, &c., Co. v. Attorney-General, 1 Dick. Ch. Rep. 270.

162. The tax is a debt, for which an action may be brought. SEC. 6. Such tax, when determined, shall be a debt due from such company to the state, for which an action at law may be maintained after the same shall have been in arrears for the period of one month; such tax shall also be a preferred debt in case of insolvency.

163. Injunction against company neglecting to pay tax. SEC. 7. In addition to other remedies for the collection of such tax, it shall be lawful for the attorney-general, either of his own motion, or upon the request of the state comptroller, whenever any tax due under this act, from any company, shall have remained in arrears for a period of three months after the same shall have become payable, to apply to the court of chancery, by petition in the name of the state, on five days' notice to such corportion, which notice may be served in such manner as the chancellor may direct, for an injunction(p) to restrain such corporation from the exercise of any franchise, or the transaction of any business within this state until the payment of such tax and interest due thereon, and the costs of such application, to be fixed by the chancellor; the said court is hereby authorized to grant such injunction, if a proper case appears, and upon the granting and service of such injunction, it shall not be lawful for such company thereafter to exercise any franchise or transact any business in this state until such injunction be dissolved.(9)

164. Act of April 18th, 1884, does not apply to foreign insurance companies.

SEC. 8. This act shall not apply to or in any manner affect the tax upon the premiums obtained in this state by foreign fire insurance companies and their agents, which tax shall be in lieu of the tax herein provided and shall be collected and distributed as is specially provided by law in relation thereto.

165. Insolvent manufacturing company may compromise with creditors.

[An act to provide for agreements between creditors and insolvent companies. Approved May 14th, 1884. P. L., p. 342.]

SEC. 1. Whenever any company organized under any law of

(p) A corporation which has manufactured nothing because prevented from using its patents will not be enjoined for non-payment of taxes. Such facts do not present "6 a proper case" under the act. Faure Elec. Light Co.'s Case, 16 Stew. Eq. 411. So with a corporation which has ceased to do any business except to preserve its organization. Re New York File and Sharpening Co.,

Id. 413.

(q) For provisions concerning forfeiture of charters of companies neglecting to pay taxes, vide sections 210-217.