MODERN WOODMEN OF AMERICA v. STATE

MODERN WOODMEN OF AMERICA v. STATE
1937 OK 466
72 P.2d 333
181 Okla. 68
Case Number: 27467
Decided: 09/14/1937
Supreme Court of Oklahoma

MODERN WOODMEN OF AMERICA
v.
STATE

Syllabus

¶0 1. TAXATION - Foreign Fraternal Beneficiary Association Doing Business in State Under Applicable Laws Held not Indebted to State for Premium Tax Exacted of "Foreign Insurance Companies."
A foreign fraternal beneficiary association, which each year since statehood has been admitted and licensed to do business in the state as such an association under applicable laws (chap. 51, art. 4, sections 10564-10593, O. S. 1931), and which association has transacted business in this state in compliance with such applicable laws, is not a "foreign insurance company" as defined and taxed in chapter 51, art. 1, sec. 10451 et seq., and sections 10451 and 10478, O. S. 1931, and such fraternal beneficiary association is not indebted to the state for any premium tax under section 10478, O. S. 1931, for any of the years 1908 to 1934.
2. SAME - Association Held not Indebted for Premium Taxes as Old Line Insurance Company Because It Maintained Reserve Fund and Paid Substantial Salaries and Commissions to Officers and Agents.
The fact that a foreign fraternal beneficiary association maintained a reserve fund to remain solvent as authorized by statute, and paid substantial salaries and commissions to its officer and agents, held not sufficient to show that such association had been doing business for profit and was an old line life insurance company and indebted for taxes as such a company.
3. SAME - Status of Association for Taxation Purposes not Changed Because of Issuance of Unauthorized Beneficiary Certificates.
A foreign fraternal beneficiary association licensed and doing business as such in this state is not converted into a corporation for profit or an old line life insurance company for taxation purposes merely because such association has issued improper, illegal or unauthorized beneficiary certificates.
4. SAME - Foreign Fraternal Beneficiary Association Operating With Lodge System, etc., and Complying With State Statutes Held Exempt From Premium Taxes.
A foreign fraternal beneficiary association with lodge system, ritualistic form of work and representative form of government, which under its articles, constitution and bylaws conformed with statutes defining and regulating fraternal beneficiary association, and which otherwise compiled with such statute, held to be a fraternal beneficiary association and exempt from premium taxes wile so operating, notwithstanding such association paid substantial salaries to officers, accumulated substantial reserve, and issued many types of beneficiary certificates.

Appeal from District Court, Oklahoma County; R.P. Hill, Judge.

Action in the name of the State against the Modern Woodmen of America. Judgment for plaintiff, and defendant appeals. Reversed.

Geo. G. Perrin, Nelson C. Pratt, John Barry, and Rittenhouse, Webster & Rittenhouse, for plaintiff in error.
John M. Wheeler. Creekmore Wallace, Mac Q. Williamson, Atty. Gen., and Randell S. Cobb, Asst. Atty. Gen., for defendant in error.

WELCH, J.

¶1 This action was commenced to recover an alleged back tax indebtedness from the defendant, Modern Woodmen of America, a fraternal beneficiary association, incorporated and domiciled in Illinois, and doing business in this state.

¶2 The material facts and issues are the same as were involved in the case of Royal Neighbors of America v. State, 181 Okla. 63, 72 P.2d 325, this day decided.

¶3 The decision in that case is controlling here, and upon that authority we hold that the defendant here is not liable.

¶4 The judgment of the trial court is therefore reversed, and the cause remanded, with directions to dismiss.