Southeastern Fire Insurance v. South Carolina Tax Commission

Littlejohn, Justice.

The plaintiff Southeastern Fire Insurance Company, a South Carolina corporation, reinsured contracts of insurance issued by Emerald Fire and Casualty Insurance Company. The South Carolina Tax Commission levied a two per cent tax on the reinsurance premiums collected in 1960 by Southeastern because of Section 37-130.2 of the 1962 Code. The tax was paid under protest and this action was brought for the purpose of recovering the amount of taxes paid.

It is the contention of the Tax Commission that the reinsurance premiums collected by Southeastern for reinsuring Emerald’s…