Lake Shore Auto Parts Co. v. Korzen, s. 44199

CourtSupreme Court of Illinois
Citation49 Ill.2d 137,273 N.E.2d 592
Docket Number44432,44308,Nos. 44199,s. 44199
PartiesLAKE SHORE AUTO PARTS CO. et al., Appellees, v. Bernard J. KORZEN, County Treasurer and ex officio County Collector of CookCounty, et al., Appellants. Eugene L. MAYNARD et al., Petitioners, v. Edward J. BARRETT, County Clerk of Cook County, et al., Defendants. Clemens K. SHAPIRO et al., Appellants, v. Edward J. BARRETT, County Clerk of Cook County, et al., Appellees.
Decision Date09 July 1971
No. 44199

Witwer, Moran & Burlage, Samuel W. Witwer, Chicago, Ancel, Stonesifer & Glink, Chicago, of counsel, for petitioner.

Edward V. Hanrahan, State's Atty., Chicago, for respondent.

No. 44432:

Schlifkin & Berman, Edward Berman, Chicago, for appellant.

Edward V. Hanrahan, State's Atty., Chicago, for appellees.

SCHAEFER, Justice.

These consolidated cases present issues concerning the construction and the validity of article IX--A which was added to the constitution of 1870 by referendum vote at the November 1970 election. On June 30, 1969, the Senate and the House of Representatives concurred in the adoption of Senate Joint Resolution No. 30, which provided for the submission of the proposed amendment to a referendum vote. Senate Joint Resolution No. 30 (Senate Journal, June 30, 1969, p. 3476) is as follows:

'SENATE JOINT RESOLUTION NO. 30

Resolved, By the Senate of the Seventy-sixth General Assembly of the State of Illinois, the House of Representatives concurring herein, that there shall be submitted to the electors of the State for adoption or rejection at the next election of members of the General Assembly of the State of Illinois, in the manner provided by law, a proposition to add Article IX--A to the Constitution, the added Article to read as follows:

ARTICLE IX--A

Section 1. Notwithstanding any other provision of this Constitution, the taxation of personal property by valuation is prohibited As to individuals.

SCHEDULE

Paragraph 1. This amendment shall become effective January 1, 1971.'

The explanation of the amendment which appeared upon the referendum ballot is as follows:

'The amendment would abolish the personal property tax by valuation levied against individuals. It would not affect the same tax levied against corporations and other entities not considered in law to be individuals. The amendment would achieve this result by adding a new article to the Constitution of 1870, Article IX--A, thus setting aside existing provisions in Article IX, section 1, that require the taxation by valuation of all forms of property, real and personal or other, owned by individuals and corporations.'

Subsequently, on May 19, 1970, the Senate adopted Senate Joint Resolution No. 67 (Senate Journal May 19, 1970, p. 6) which contained a further statement of the intention of the General Assembly in adopting Senate Joint Resolution No. 30. Senate Joint Resolution No. 67 was concurred in by the House of Representatives on May 29 1970 (Senate Journal May 29, 1970, p. 149). It reads as follows:

'SENATE JOINT RESOLUTION NO. 67

Resolved, By the Senate of the Seventy-sixth General Assembly of the State of Illinois, the House of Representatives concurring herein, that, in adopting Senate Joint Resolution No. 30, which submits to the electors of this State a constitutional amendment prohibiting the taxation of personal property by valuation as to individuals, it was the intention of this General Assembly to abolish the ad valorem taxation of personal property owned by a natural person or by two or more natural persons, and that, by the use of the phrase 'as to individuals', this General Assembly intended to mean a natural person, or two or more natural persons as joint tenants or tenants in common.'

The first of the three consolidated actions that are before us was filed by Lake Shore Auto Parts Co., a corporation, on December 9, 1970. The complaint named as defendants the county clerk of Cook County, the county assessor, the county collector and the members of the board of appeals of that county, as well as the director of the Department of Local Government Affairs of the State. It alleged that it was filed as a class action on behalf of the plaintiff (hereafter Lake Shore) and on behalf of all other corporations and other 'non-individuals' subject to personal property tax. It asserted that the new article IX--A violates the fourteenth amendment to the constitution of the United States because its effect 'it to exonerate from ad valorem personal property taxation, on and after January 1, 1971, all personal property owned by 'individuals', while authorizing and requiring the continued ad valorem taxation of all personal property owned by entities other than 'individuals. " It also alleged that the provisions of article IX--A immediately became a part of and amended the Revenue Act of 1939, so that that statute 'imposes ad valorem taxes only with respect to personal property owned by corporations and other entities which are not 'individuals' within the meaning of said Article IX--A.' The complaint prayed for a decree 'finding and declaring that the provisions of the Revenue Art of 1939 * * *, as amended by Article IX--A of the Constitution of Illinois, are unconstitutional, invalid and unenforceable insofar and to the extent that such statute purports to impose ad valorem taxes with respect to personal property owned by plaintiff and all corporations and other 'non-individuals' who are members of the class which plaintiff represents.' An injunction, as well as relief appropriate to a class action, was also sought.

The answers of the defendants denied the legal conclusions asserted by the plaintiff. They did not admit the allegations that related to the representative character of the action, but they did not dispute any allegations of fact that related to the basic issues.

All parties moved for summary judgment, and the trial court entered an order on March 30, 1971, granting the basic relief prayed for in the complaint, but reserving jurisdiction to determine the class aspect of the action. The order also found that article IX--A is not applicable to personal property taxes the assessment of which was commenced prior to January 1, 1971. The defendant, Robert J. Lehnhausen, Director of the Department of Local Government Affairs of the State of Illinois, has appealed, and the plaintiff has cross-appealed from that portion of the order that related to the particular taxes to which the court's order was applicable.

A petition seeking leave to file an original action in this court was filed on May 10, 1971, on behalf of Eugene L. Maynard, 'a natural person, citizen and taxpayer of the State of Illinois,' and also on behalf of one high school district and three grade school districts. Leave to file was granted on May 12, 1971. The defendants are those State and county officers who are defendants in the Lake Shore case. The complaint, which sought a declaratory judgment and other relief, alleges the adoption of article IX--A. It is suggested that 'the Lake Shore case will come to the Court in a flawed condition in that it will not properly present the parties and arguments essential for a full determination of the important revenue question. * * * Without the presence of Eugene L. Maynard, neither the presence nor the position of a natural person will be adequately presented to this Court.' The complaint alleged that it was filed by Maynard, who is alleged to own non-business personal property, on behalf of himself and all others similarly situated. It also alleged that it was filed on behalf of the named public bodies for themselves and all other public bodies which receive proceeds from personal property taxation.

The deficiencies in parties and in legal arguments in the Lake Shore case is said to lie in the fact that the only plaintiff in that case is a corporation, and in the fact that the complaint in that case does not contain a direct request for a declaration of the unconstitutionality of article IX--A. 'The pleadings of that case place into question only certain sections of the Illinois Revenue Act. The attack is made upon these sections as affected by the passage of Article IX--A rather than upon the constitutionality of the Article itself. * * * If the Court considers the Lake Shore case without additional parties and arguments, it may be foreclosed from ruling on the central issue of constitutionality of the Amendment.'

No new facts were alleged in the Maynard case, and the defendant Lehnhausen has conceded the factual questions and filed a brief to stand as his answer in this case. The brief on behalf of the defendant county officers appears similarly to have been intended to stand as a motion to dismiss the complaint.

Another action was instituted by a complaint for declaratory judgment which was filed in the circuit court of Cook County on May 8, 1971, on behalf of several plaintiffs. Clemens K. Shapiro alleged that he is a natural person who owns personal property in his own name and real property jointly with his wife, none of which property is owned or used for purposes of business, and all of which property is owned and used for his personal enjoyment and that of his family. Jerome Herman alleged that he is a natural person and operates and conducts a business as a sole proprietor. Guy S. Ross and Eugene D. Ross allege that they are natural persons and operate, as a partnership, a business which owns property. M. Weil and Sons, Inc., a corporation, alleges that it is the owner of property situated in Cook County.

The complaint alleges that each of the plaintiffs is acting in a representative capacity...

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22 cases
  • Hillsboro National Bank v. Commissioner of Internal Revenue United States v. Bliss Dairy, Inc
    • United States
    • United States Supreme Court
    • 7 Marzo 1983
    ...... held the amendment unconstitutional in Lake Shore Auto Parts Co. v. Korzen, 49 Ill.2d 137, ......
  • Minnesota v. Clover Leaf Creamery Company, 79-1171
    • United States
    • United States Supreme Court
    • 21 Enero 1981
    ...... ground. I also agree with most of Parts" I and II of the Court's opinion. .       \xC2"...Lake Shore Auto Parts Co. , 410 U.S. 356, 93 S.Ct. ... See Lake Shore Auto Parts v. Korzen , 49 Ill.2d 137, 149-151, 273 N.E.2d 592, 598-599 ......
  • HILLSBORO NAT'L BANK V. COMMISSIONER
    • United States
    • United States Supreme Court
    • 7 Marzo 1983
    ......, POWELL, and REHNQUIST, JJ., joined, and in Parts I, II, and IV of which BRENNAN, J., joined. ... held the amendment unconstitutional in Lake Shore Auto Parts Co. v. Korzen, 49 Ill.2d 137, ......
  • People v. McCabe, 42674
    • United States
    • Supreme Court of Illinois
    • 15 Octubre 1971
    ...... in favor of another similarily situated.' Lake Shore Auto Parts Co. v. Korzen, 49 Ill.2d 137, ......
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