Aetna Insurance v. Hobbs

It is with regret that I find myself unable

to concur in this decision. Various issues are involved, but in an effort to keep this statement within reasonable limits I shall limit it to the premium tax, which is the heart of the controversy.

First, as to the nature of the so-called premium tax. It is not in fact a tax upon insurance premiums. It is not assessed against any particular activities or transactions. It is simply a privilege tax— a tax exacted annually from certain foreign (out of state) companies for the privilege of transacting their insurance business in this state. (Pac. Mutual…