Superior Bath House Co. v. McCarroll

By a 1929 Act, Arkansas imposed a tax of 2% on the net income of domestic corporations “with respect to *177carrying on or doing business” in the state.1 Appellant, a corporation organized under Arkansas law, leases from the United States and operates for profit a bath house on the federal reservation at Hot Springs. Whether appellant is subject to the state tax depends on the interpretation of the language of a provision of a Congressional Act of 1891 and the corresponding provision of an Arkansas Act of 1903. The Congressional Act reads: “The consent of the United States is hereby given for the…