Gulf Oil Corp. v. South Carolina Tax Commission

Lionel K. Legge, Acting Associate Justice.

This appeal presents a single question, which appellant states thus: Does the excess above par value of stock distributed in a stock dividend which is trasferred from an earned surplus account to a capital account constitute dollars paid in as surplus subject to the South Carolina license or franchise tax?

Respondent, Gulf Oil Corporation, a Pennsylvania corporation qualified to do business and doing business, in South Carolina, issued in the years 1958 through 1963 stock dividends to its shareholders. The par value of the stock so issued was charged…