United States Supreme Court Cases & Opinions

U.S. Supreme Court

New York Life Ins. Co. v. Bowers, 283 U.S. 242 (1931)

New York Life Insurance Company v. Bowers

Nos. 93 and 160

Argued March 2, 3, 1931

Decided April 13, 1931

283 U.S. 242

Syllabus

1. Funds of a mutual life insurance company derived from excess of premiums over actual cost of insurance and entered on its books as funds available for repayment as annual and deferred dividends to its policyholders, were taxable under subsection (c) of § 1000, Revenue Act of 1918, imposing a capital stock tax on "surplus . . . maintained for the general use of the business." P. 283 U. S. 245.

2. Subsection (b) of § 1000, Revenue Act of 1918, which provides that,

"In computing the tax in the case of insurance companies, such deposits and reserve funds as they are required by law or contract to maintain or hold for the protection of or payment to or apportionment among policyholders shall not be included,"

applies not to mutual, but to stock, insurance companies. P. 283 U. S. 246.

3. The capital stock tax, under § 1000(c), Revenue Act of 1918, was payable in advance for each year commencing July 1. P. 283 U. S. 247.

4. This tax for the year commencing July 1, 1920, was not superseded by the Revenue Act of 1921, approved November 23, 1921. P. 283 U. S. 248.

5. The Revenue Act of 1921, by imposing a tax upon the net income of every insurance company for the calendar year 1921 and each taxable year thereafter, in lieu of other taxes imposed by that Act, including capital stock taxes (§ 1000), by repealing as of January 1, 1922, Title X of the Revenue Act of 1918, including § 1000 of that Act, and by providing further that,

"In the case of any tax imposed by any part of the Revenue Act of 1918 repealed by this Act, if there is a tax imposed by this Act in lieu thereof, the provision [of the 1918 Act] imposing such tax shall remain in force until the corresponding tax under this Act takes effect,"

operated to cancel or remit the capital stock tax on insurance companies under the 1918 Act for the fiscal year ended June 30, 1922. P. 248",".

39 F.2d 556 affirmed.

Page 283 U. S. 243

Certiorari, 281 U.S. 718, granted on cross-petitions, to review a judgment affirming a judgment, 34 F.2d 60, partly favorable and partly adverse to the insurance company in its suit to recover money paid as taxes. The defendant's executor was substituted in this Court.