St. Louis Cotton Compress Co. v. Arkansas, 260 U.S. 346 (1922)

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St. Louis Cotton Compress Company v. Arkansas

No. 120

Argued November 23, 24, 1922
Decided December 4, 1922
260 U.S. 346

ERROR TO THE SUPREME COURT

OF THE STATE OF ARKANSAS

Syllabus

1. In determining the constitutionality of a pecuniary exaction made under a state statute in the guise of taxation, this Court is not bound by the characterization of the exaction by the state supreme court as an "occupation tax." P. 348.

2. A state law exacting of persons insuring their property situate in the state a so-called tax of 5% of the amounts paid by them as premiums to insurers not authorized to do business in the state is void as applied to insurance contracted and paid for outside the state by a foreign corporation doing local business. P. 348. Allgeyer v. Louisiana, 165 U.S. 578.

147 Ark. 406 reversed.

Error to a judgment of the Supreme Court of Arkansas in an action brought by the state to recover 5% of amounts paid by the Compress Company to fire insurance companies, not authorized to do business in the state, for insuring its property in Arkansas.