Central Steel & Wire Co. v. City of Detroit

• Decision Date: 05 September 1951
• Docket Number: No. 9744.,9744.
• Citation: 99 F. Supp. 639
• Parties: CENTRAL STEEL & WIRE CO. v. CITY OF DETROIT.
• Court: U.S. District Court — Western District of Michigan

99 F. Supp. 639

CENTRAL STEEL & WIRE CO. v. CITY OF DETROIT.

No. 9744.

United States District Court E. D. Michigan, S. D.

September 5, 1951.

Edward T. Goodrich of Hill, Essery, Lewis & Andrews, Detroit, Mich., for the plaintiff.

Paul T. Dwyer, Acting Corp. Counsel, John G. Dunn, Asst. Corp. Counsel, both of Detroit, Mich., for the defendants.

THORNTON, District Judge.

The complaint filed herein alleges that the plaintiff, an Illinois corporation, is now and was on January 1, 1950, engaged in the business of wholesale distributing of steel and non-ferrous mill products in the City of Detroit, and in connection with this business it had, in the City of Detroit, on January 1, 1950, for sale in the conduct of its said business, a quantity of steel and non-ferrous sheets, bars, tubes, shapes and other materials hereinafter called "inventory", which was subject to taxation in the City of Detroit for the year 1950; and further alleges that by Article XIV, Section 11 of the Constitution of Michigan (1850), the legislature was directed to provide a uniform rule of taxation except on property paying specific taxes and by Article XIV, Section 12 of said Constitution all assessments were directed to be on property at its cash value. Such provisions were incorporated without change in Article X, Section 3, and Article X, Section 7, respectively, of the Constitution of Michigan (1908), and that pursuant to such constitutional direction, the Legislature of the State of Michigan enacted Act No. 206 of the Public Acts of 1893, which Act, as amended, is hereinafter referred to as the General Property Tax Law. Section 24 of said Act requires that all property, both real and personal, be assessed at its true cash value. By Section 107 of said Act, said Act was made applicable to all cities where not inconsistent with their respective charters; and that by Title VI, Chapter II, Section 1 of the Charter of the City of Detroit, all real and personal property within the City subject to taxation by the laws of the State of Michigan is required to be assessed at its true cash value; and that for the year 1950 the total personal property assessment made against this plaintiff by the Board of Assessors of the City of Detroit and upheld on appeal by the Common Council Board of Review was $1,051,220; that of such amount $953,049 was on account of such "inventory" of taxpayer. That the total amount of plaintiff's personal property taxes in the City of Detroit for the year 1950 was $34,786.96 of which the plaintiff paid one-half ($17,393.48), on August 14, 1950; and that the said payment made on August 14, 1950, was made to the Treasurer of the City of Detroit, accompanied by written protest, in accordance with the provisions of Section 53 of the General Property Tax Law, the grounds of such protest being substantially those forming the basis of the within action; and that the assessed valuation made against this plaintiff on account of "inventory" was equal to or in excess of the true cash value of such "inventory"; that the assessed valuation of real estate in the City of Detroit for the year 1950 was substantially less than the true cash value thereof. That residential real estate in the City of Detroit for the year 1950 was assessed at approximately 50% of its true cash value. That other types of real estate in the City of Detroit were assessed for the year 1950 at somewhat higher than 50% of true cash value, but that the general level of assessments of real property in the City of Detroit for taxation for the year 1950 was at less than 70% of the true cash value of such real estate. That the assessed valuation of real estate in the City of Detroit for the year 1950 is approximately two-thirds of the assessed valuation of all property in the City of Detroit.

The plaintiff further complains "That the assessing of `inventory' at equal to or greater than true cash value while at the same time assessing real estate at less than true cash value is contrary to Article X, Section 3, and Article X, Section 7, of the Michigan Constitution (1908), contrary to Section 24 of the General Property Tax Laws, contrary to Title VI, Chapter II, Section 1, of the Charter of the City of Detroit (1945); and that the levying and collection of taxes on such assessments deprives plaintiff of its property without due process of law, contrary to the Fourteenth Amendment of the Constitution of the United States, and contrary to Article II, Section 16, of the Constitution of the State of Michigan, and deprives plaintiff of the equal protection of the laws, contrary to the Fourteenth Amendment of the Constitution of the United States."

The complaint terminates with the following: "Wherefore, plaintiff claims damages in the amount of Ten Thousand and No/100 Dollars ($10,000.00) and prays for judgment against the defendant in that amount."

To this the defendant moved to dismiss, basing its motion on four grounds, the one with which we are here concerned being as follows: "To dismiss the action for the reason that the...