Opinion
No. 27448.
September 14, 1937. Rehearing Denied October 19, 1937.
(Syllabus.)
1. Taxation — Foreign Fraternal Beneficiary Association Doing Business in State Under Applicable Laws Held not Indebted to State for Premium Tax Exacted of "Foreign Insurance Companies."
A foreign fraternal beneficiary association, which each year since statehood has been admitted land licensed to do business in the state as such an association under applicable laws (chapter 51, art. 4, sections 10564-10593, O. S. 1931), and which association has transacted business in this state in compliance with such applicable laws, is not a "foreign insurance company" as defined and taxed in chapter 51, art. 1, sec. 10451 et seq., and sections 10451 and 10478, O. S. 1931, and such fraternal beneficiary association is not indebted to the state for any premium tax under section 10478, O. S. 1931, for any of the years 1908 to 1934.
2. Same — Association Held not indebted for Premium Taxes as Old Line Insurance Company Because It Maintained Reserve Fund and Paid Substantial Salaries and Commissions to Officers and Agents.
The fact that a foreign fraternal beneficiary association maintained a reserve fund to remain solvent as authorized by statute, and paid substantial salaries and commissions to its officers and agents, held not sufficient to show that such association had been doing business for profit and was an old line life insurance company and indebted for taxes as such a company.
3. Same — Status of Association for Taxation Purposes not Changed Because of Issuance of Unauthorized Beneficiary Certificates.
A foreign fraternal beneficiary association licensed and doing business as such in this state is not converted into a corporation for profit or an old line life insurance company for taxation purposes merely because such association has issued improper, illegal or unauthorized beneficiary certificates.
4. Same — Foreign Fraternal Beneficiary Association Operating With Lodge System, etc., and Complying With State Statutes Held Exempt From Premium Taxes.
A foreign fraternal beneficiary association with lodge system, ritualistic form of work and representative form of government, which under its articles, constitution and by-laws conformed with statutes defining and regulating fraternal beneficiary associations, and which otherwise complied with such statute, held to be a fraternal beneficiary association and exempt from premium taxes while so operating, notwithstanding such association paid substantial salaries to officers, accumulated substantial reserve, and issued many types of beneficiary certificates.
Appeal from District Court, Oklahoma County; R.P. Hill, Judge.
Action in the name of the State against the Maccabees, a corporation. Judgment for plaintiff, and defendant appeals. Reversed.
Rainey, Flynn, Green Anderson, Edward J. Jeffries, Jr., and Calvin Jornes, for plaintiff in error.
John M. Wheeler, Creekmore Wallace, Mac Q. Williamson, Atty. Gen., and Randell S. Cobb, Asst. Atty. Gen., for defendant in error.
This action was commenced to recover an alleged back tax indebtedness from the defendant. The Maccabees, a corporation, a fraternal beneficiary association, incorporated and domiciled in Michigan, and doing business in this state.
The material facts and issues are the same as were involved in the case of Royal Neighbors of America v. State, 181 Okla. 63, 72 P.2d 225, this day decided.
The decision in that case is controlling here, and upon that authority we hold that the defendant here is not liable.
The Judgment of the trial court is therefore reversed and the cause remanded, with directions to dismiss.
BAYLESS, V. C. J., and PHELPS, CORN, GIBSON, HURST, and DAVISON, JJ., concur. OSBORN.C. J., dissents. RILEY, J., not participating.