United States Supreme Court Cases & Opinions

U.S. Supreme Court

Schwab v. Richardson, 263 U.S. 88 (1923)

Schwab v. Richardson

No. 81

Submitted October 15, 1923

Decided November 12, 1923

263 U.S. 88

Syllabus

1. A state may tax the franchise of a corporation of its own creation upon a valuation arrived at by deducting from the actual or market value of its capital stock the value of its tangible property within and without the state, by assigning, as the assessable and taxable value within the state, such part of this difference as is proportional to the business of the corporation transacted there compared with its outside business, and by levying the tax upon a percentage of this taxable value. P. 263 U. S. 91.

Page 263 U. S. 89

2. A tax so assessed, not excessive in amount, on a corporation largely engaged in interstate and foreign commerce held not objectionable as depriving the corporation of property without due process of law or as regulating or burdening such commerce. Id.

188 Cal. 27 affirmed.

Error to a judgment of the Supreme Court of California which affirmed a judgment given on the pleadings against the plaintiff in error in his suit to recover a tax paid under protest.