In re Taxes
| Decision Date | 12 March 1904 |
| Citation | 15 Haw. 476 |
| Parties | IN RE ASSESSMENT OF TAXES, KASH COMPANY, LIMITED. IN RE ASSESSMENT OF TAXES, PACIFIC HARDWARE COMPANY, LIMITED. |
| Court | Hawaii Supreme Court |
OPINION TEXT STARTS HERE
APPEALS FROM TAX APPEAL COURT, HONOLULU.
Syllabus by the Court
The “full cash value”, within the meaning of the tax statute, of a stock of goods, wares and merchandise is not necessarily the value represented by the inventory and carried on the books of the owner for business purposes. It may be less, and it may also be more.
The “full cash value”, under the tax law, of a stock of goods, wares and merchandise, is what such goods would bring at a sale for cash (on the date of assessment), whether as a whole or in lots or separately,-by whatever of these methods the highest aggregate returns would be obtained, provided all the goods were sold on the same day.
Robertson & Wilder for the assessor.
Smith & Lewis for the taxpayers.
GALBRAITH AND PERRY, JJ., AND CIRCUIT JUDGE DE BOLT IN PLACE OF FREAR, C.J., DISQUALIFIED.
The Kash Co., Ltd., a corporation owning and conducting a wholesale and retail (mainly retail) dry goods business, returned its stock of “goods, wares and merchandise” at $36043.74. The assessor ascertained that these goods were carried on the books of the owner at an inventoried value of $45054.67 and assessed them at the latter figure. The Tax Appeal Court sustained the return. The Pacific Hardware Co., Ltd., engaged in the hardware and general merchandise business, returned its stock of “goods wares and merchandise” at $270363.41, which was raised by the assessor to $318074.61, the inventory value. In this instance, also, the return was sustained by the Tax Court. The amounts returned were arrived at by deducting in the Kash Co. case 20% and in the other 15% from the valuation carried in the respective inventories. The contention of the assessor is that such stocks of goods cannot lawfully be returned for taxation purposes at less than the values placed by the owners in their inventories and these appeals were originally taken by the taxpayers to ascertain whether that contention is well founded in law.
Whether or not goods, wares and merchandise or other property can be returned at a valuation less than that placed thereon by the owners in inventories kept for business or other private purposes, depends in each particular instance upon the method of reaching the inventory valuation,-upon what that valuation represents. The court cannot say that in no case can such a deduction be made, nor can it say that in no case can the valuation for taxation purposes be higher than that found in such an inventory. The statute has laid down the standard of measurement which is to govern in all cases and that is the “full cash value”. If a stock of goods has been placed in a private inventory at its full cash value, that is the valuation at which such property is taxable; if at more than its full cash value, a reduction from the face of the inventory, sufficient to reach the full cash value, should be made in the return and assessment; and if at less than the full cash value, there should be a sufficient increase to make the valuation in the return and assessment represent the full cash value. The issue in each case is one of fact to be determined in view of all the circumstances.
What is the “full cash value”? ...
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