Northwestern Mutual Life Insurance v. Johnson

THE COURT. The plaintiff sued the defendant state treasurer for the sum of $4,325.87, as a portion of the tax assessed against it in the year 1934 by the state board of equalization under the provisions of section 14 of article XIII of the Constitution and paid under protest. Judgment was entered for the plaintiff and the defendant appealed. The cause is presented on an agreed statement of facts.

The plaintiff is an insurance company doing business in this state. As such it is and was at the time herein involved required by the provisions of section 14 of article XIII of the Constitution to pay a tax measured by a percentage of the gross premiums received from business done in this state. The section also provides that there shall be deducted from the amount of such tax the amount of taxes “paid by such companies on real estate owned by them in this state”.

In 1934 the state board of equalization levied against the plaintiff a state tax of $74,425.40 computed by the percentage of its gross premiums received during the calendar year 1933. That tax became due and payable" on the first Monday in July, 1934, and the plaintiff paid the same in two installments. Of said tax, however, the plaintiff duly protested payment of the sum of $4,325.87 on the ground that said sum represented taxes paid by it on real estate owned by it in this state, and was therefore deductible from the state tax. The state board refused to allow the deduction. The defendant treasurer resists recovery on the ground that the real property involved Was acquired by the plaintiff subsequent to the date when said taxes became a lien.

In May, 1932, the plaintiff recovered a judgment in a foreclosure action against Continental Buildings Company, which had been the owner of said property. Pursuant to that judgment and on June 21, 1932, the real estate was sold to the plaintiff as the highest bidder and a certificate of sale was issued to it. No redemption was made and on June 22, 1933, the commissioner’s deed was executed and delivered to the plaintiff as the purchaser, and duly recorded. County and municipal taxes in the total sum of $8,651,74 had become [45]a lien on said property in March, 1933. The plaintiff paid the first installment thereof, or the sum of $4,325.87 on November 28, 1933. In March, 1933, the property appeared on the assessment rolls in the name of Continental Buildings Company. No contention is made that the plaintiff could not lawfully own said property pursuant to the provisions of section 415 of the Civil Code.