Automobile Underwriting Agency v. State

In May, 1918, the appellant began the writing of insurance on automobiles, at that time *89being the only local company engaged in that form of business. The report of appellant for the year 1919, made on December 31 of that year, showed that the appellant had on hand $26,500 in cash, $22,000 in liberty bonds, United States treasury notes and war savings stamps, and had outstanding premiums in the course of collection in the sum of $32,000, which would fall due in ninety days.

The appellant was called upon to pay to the state, under Rem. Comp. Stat., § 7071 [P. C. § 2933], a tax of 2%% on all the…