Mavis Bottling Co. of Goldsboro, Inc. v. Doughton , 196 N.C. 791 ( 1929 )

Adams, J.

Tbe plaintiff, a corporation having its principal office in the city of Goldsboro, is engaged in the business of bottling, selling, and distributing a soft drink known as “Mavis.” After the drink is bottled and crated in the plant at Goldsboro, the plaintiff, at its own expense and upon its own trucks, transports quantities of the bottled product to its warehouses in other cities and there stores it until it is distributed by the plaintiff’s employees to the retail trade. The plaintiff paid the defendant $225 as a license tax for the privilege of carrying on its. business and $1,250 for the privilege of distributing the drink in bottles. The latter tax was paid under protest and suit was brought for its recovery. O. S., 7979. The solution of the controversy turns upon the construction of certain sections of chapter 80 of the Public Laws 1927, entitled “An Act to Eaise Bevenue.”

Section 134(a) provides: “Every person, firm, corporation, or association manufacturing, producing, bottling and/or distributing in bottles or other closed containers, soda water, Coca-cola, Pepsi-cola, Chero-cola, ginger ale, grape and other fruit juices or imitations thereof carbonated, or malted beverages and like preparations commonly known as soft drinks, shall pay a license tax for the privilege of doing business in this State under the following schedule.”

The material part of section 134(b) is as follows: “Every person, firm, corporation or association distributing, selling at wholesale, or jobbing bottled beverages as enumerated in subsection (a) of this section shall pay an annual license tax for the privilege of doing business in this State as follows: . . . Provided, that where the tax levied under subsection (a,) of this section has been paid on any of the articles, machines or equipment units enumerated therein, the tax levied under this subsection shall not apply; Provided further, that only one tax shall be collected from any person, firm, corporation or association distributing, selling at wholesale, or jobbing any of the articles enumerated in this subsection.”

Subsection (a.) requires a license tax for the privilege of manufacturing, bottling and distributing soft drinks in bottles or other closed containers. In subsection (d) it is provided that only one State tax shall be assessed and collected under the provisions of this section. Subsection (a) includes the business of “manufacturing, producing, bottling and/or distributing.” Each of these may be regarded as a business separate and distinct from the others; but when all of them are carried on at one place only one State tax shall be assessed, as subsection (d) provides. Suppose the plaintiff should pay a tax for the privilege of manufacturing the beverage at Goldsboro, where it has its principal office, and should engage also in the business of distributing the bottled product by wholesale at the same place; an additional tax for distribu tion there could not be collected because it is prohibited by subsection (d). But section 100 provides that if the business which is taxable under Schedule B is carried on at two or more separate places, a separate license for each place of business shall be required. According to the agreed case the beverage is put into bottles at Goldsboro and carried thence to several other cities and stored in warehouses; and from these warehouses it is distributed to the retail trade. Selling to the retail trade from each of these warehouses constitutes a distribution of the manufactured product within the contemplation of subsection (b).

The second proviso in this subsection was evidently intended to make distributing, jobbing and selling at wholesale a single business for which only one tax should be collected; it was not intended, in our opinion, to provide for the payment of only one tax without regard to the number of places in which the business is conducted. As to the first proviso it may be said that so far as the record discloses the tax levied under subsection (a) has not been paid on the equipment units enumerated therein. The judgment is

Affirmed.