D. Kelly Turner, of Phoenix, Delmore S. Wood, Phoenix, of counsel, for appellant.
Knapp, Boyle, Bilby & Thompson, and Arthur Henderson, all of Tucson, for appellee.
De Concini, Justice. Udall, C. J., and Stanford, Phelps, and La Prade, JJ., concurring.
De Concini, Justice.
[74 Ariz. 389] This action was brought to enforce provisions of the Employment Security Act, Chapter 56, A.C.A.1939, hereinafter referred to as the Act. All references to "Chapter 56" apply to 1939 Arizona Code Annotated, 1952 Supplement. The ultimate question to be decided is what rate applies, the 2.7% or 1.5%?
The Employment Security Commission, hereinafter referred to as the Commission, brought an action against the appellee Lumber Distributors, Inc., hereinafter referred to as the "corporation", for the difference between the amount of premiums the corporation paid in pay-roll taxes to the Commission on wages paid in its business during the first quarter of 1950 and the amount the Commission claimed was due it. The appeal hinges entirely upon the tax rate applicable to the corporation. The contention of the Commission is that the corporation owed contributions at the rate of 2.7% for the calendar year 1950. The corporation on the other hand contends that their tax rate was 1.5% of wages paid commencing January 1, 1950. The corporation paid upon the basis of the latter rate. The Commission brought suit for $ 313.28, being the difference.
Appellee corporation commenced business May 18, 1946 with five to ten employees regularly employed. The corporation became an employer subject to the Act the first week in October as a result of having,
"* * *
for some portion of a day, * * * in each of twenty (20) different calendar weeks, * * * in [74 Ariz. 390] employment, three (3) or more individuals * * *." Sec. 56-1002g(a).
Under Section 56-1007 the corporation then became liable for contributions to the Commission on wages paid its employees from May 18, 1946.
The corporation made contributions on its payroll at the rate of 2.7% under Section 56-1007a(b). At the beginning of its fourth calendar year, January 1, 1950, it contended it had become ...