Harlan F. Stone

“ It contended that if construed as imposing a license tax, the statute was unconstitutional in attemption to substitute an occupation for the ad valorem tax required by section 172 of the state Constitution. The main contention however was that the tax in substance was a property and not a license tax and hence invalid under section 171 of the state Constitution requiring uniform taxation since oil properties were subject to two property taxes whereas other classes of property were subject to but one. ”

“ But plaintiff argues that this determination of the state court presupposes the validity under the federal Constitution of the act of 1917, which has the same vice as the later act. It is contended, as it was of the act of 1918, that the one per cent. production tax imposed is in effect a property tax. ”

“ By other sections those engaged in the business of transporting oil are required to report to the tax officials, the amount of oil transported by them and to pay the tax, and they are authorized to collect the amount of the tax from the producer, either in money or crude petroleum. ”