Atlas Corp. v. State Tax Commission, 10543

• Decision Date: 13 June 1966
• Docket Number: No. 10543,10543
• Citation: 18 Utah 2d 57,415 P.2d 208
• Parties: d 57 ATLAS CORPORATION, a corporation, Plaintiff and Appellant, v. STATE TAX COMMISSION of Utah et al., Defendants and Respondents.
• Court: Utah Supreme Court

Page 208

415 P.2d 208

18 Utah 2d 57

ATLAS CORPORATION, a corporation, Plaintiff and Appellant, v. STATE TAX COMMISSION of Utah et al., Defendants and Respondents.

No. 10543.

Supreme Court of Utah.

June 13, 1966.

Van Cott, Bagley, Cornwall & McCarthy, David E. Salisbury, Clifford L. Ashton, Leonard J. Lewis, Salt Lake City, for appellant.

Phil L. Hanson, Atty. Gen., F. Burton Howard, Asst. Atty. Gen., for respondents.

WADE, Justice:

Plaintiff Atlas Corporation appeals from a judgment of the District Court denying its request for an injunction to prohibit the Tax Commission from executing certain warrants issued by it upon all the real and personal property of that corporation for the payment of ad valorem real property taxes assessed against two of its mines which had become worthless and from requiring it to personally furnish security for the payment of such taxes upon those properties.

This court, in San Juan County v. Jen, Inc., ¹ held that the ad valorem tax against a mining property is not essentially different, though based on a net proceeds formula in determining valuation, than the tax on other real property; and that the legislature has provided the means of collection 'of property taxes, which is based upon a lien upon the property, and has omitted expressing any intent that there should be a personal judgment, that therefore no such personal obligation exists.' (Emphasis ours.)

In the proceeding here under review the Tax Commission takes the position that it is authorized by Sections 59--5--79 and 59--5--80, U.C.A.1953, to collect delinquent ad valorem mining taxes by docketing warrants which can be satisfied from other property of the owner of the mine. Section 79 provides that, 'If the tax imposed by this chapter or any portion thereof is not paid when the same becomes due, the tax commission may issue a warrant, * * * directed to the sheriff of any county of the state commanding him to levy upon and sell the real and personal property of the taxpayer found within this county for the payment of the amount thereof * * *.' And Section 80 provides the manner in which this shall be carried out.

In analyzing this contention it is appropriate to look to the background and purpose of the enactment. The sections referred to were first enacted as Sections 15 and 16 of Chapter 101, S.L.U.1937, which was entitled: An Act Amending (certain sections) and Enacting New Sections Imposing An Occupation Tax On All Engaged In The Business Of Mining Or Producing Metalliferous Ores; Providing For The Collection And Disposition Of Such Occupation Tax; * * * etc. In that enactment the language quoted of Section 15 (now Section 59--5--79) that 'If the tax imposed by this chapter or any portion thereof is not paid * * *' clearly refers to the collection of the mine occupation tax first created by that chapter. Such plausibility as there is to the position taken by the Tax Commission arises because this Chapter 101, S.L.U.1937, which created...