Broadhead v. Monaghan

Decision Date15 February 1960
Docket NumberNo. 41225,41225
Citation238 Miss. 239,117 So.2d 881
PartiesSam E. BROADHEAD v. Noel MONAGHAN, ex officio Commissioner of State Tax Commission.
CourtMississippi Supreme Court

deQuincy V. Sutton, Meridian, for appellant.

John E. Stone, Jackson, for appellee.

KYLE, Justice.

This case is before us on appeal by Sam E. Broadhead, complainant in the court below, from a decree of the Chancery Court of the First Judicial District of Hinds County, dismissing his bill of complaint against Noel Monaghan, Chairman of the State Tax Commission and Ex Officio Commissioner of State Income Tax, seeking a mandatory injunction in the form of an order to require the acceptance by the commissioner of the complainant's tender of payment of state income tax without penalty for the calendar year 1956.

The complainant alleged in his bill that he had filed his state income tax return for the calendar year 1956, pursuant to the requirements of the statute, and had elected to pay the tax shown to be due in four installments; that the first three installments were duly paid within the time allowed by the statute; but the fourth installment, which became due and payable on or before the 15th day of December 1957, was not paid when due; that notice of the delinquency was sent to the complainant by the commissioner, although no such notice was required by the statute; that the tax was not paid within sixty days after its due date; and that the commissioner on February 17, 1958, notified the complainant that a penalty of ten per cent had been imposed on account of the delinquency. The complainant further alleged that the commissioner on March 7, 1958, addressed another letter to the complainant advising him that a penalty of 25 per cent of the amount of the tax due had been imposed, together with 12 per cent interest, making a total sum of $5,226.95, for which payment was demanded; and that the commissioner on March 11, 1958, advised the complainant by letter that a warrant for the collection of the tax would be issued on March 17, 1958; that the complainant, upon receipt of the letter, tendered to the commissioner a check for the sum of $3,888.29 in payment of the delinquent installment of tax, along with a check for the sum of $58.32 as interest, on the installment for the period of delinquency; and that the commissioner promptly rejected the tendered checks and returned them to the complainant, and demanded that the complainant remit the sum of $5,226.95 in settlement of the tax, interest and penalty referred to in his letter of March 7, 1958. Copies of the letters mentioned above were attached as exhibits to the bill of complaint.

The complainant further alleged in his bill that the provisions of the statute (Section 9220-24, Mississippi Code of 1942, Recompiled) under which the commissioner had undertaken to impose the 25 per cent penalty were invalid in that they represented an unconstitutional delegation of legislative power to the commissioner to impose penalties in amounts which might vary from taxpayer to taxpayer. The complainant also denied the right of the commissioner to delegate to the chief of the Income Tax Division the power of imposing penalties under the statute. The complainant tendered in his bill of complaint the checks previously tendered to the commissioner for the sums of $3,888.29 and $58.32, in settlement of the tax liability and interest accrued to March 15, 1958; and the complainant prayed that a decree be entered requiring the defendant to accept the tendered checks in full settlement of said liability, and that the claim for the alleged penalty be suppressed and declared void. The complainant also prayed for general relief.

The complainant later amended his bill, so as to allege, that the attempted delegation by the Legislature to the commissioner of authority to impose the penalty was repugnant to the provisions of Section 33 of the State Constitution and the Fourteenth Amendment of the Constitution of the United States, in that it represented a denial to the complainant of the equal protection of the laws.

The defendant in his answer admitted the facts alleged in the bill concerning the complainant's failure to pay the fourth installment of his 1956 income tax, the imposition of the 25 per cent penalty because of such default, and the demand for the payment of the tax, interest and penalty as alleged in the complainant's bill. The defendant denied that the discretionary power to impose penalties for delinquencies in the payment of taxes, vested in the commissioner under Section 9220-24, Code of 1942, Recompiled, was subject to judicial review in the absence of abuse, which was not present in this case. The defendant denied that Code Section 9220-24 represented an unconstitutional delegation to the commissioner of the right to impose or withhold penalties; and the defendant denied that the penalty imposed on the complainant was unlawful. The defendant denied that the statute authorizing him to impose penalties violated Section 33 of the State Constitution or the Fourteenth Amendment of the Constitution of the United States; and the defendant denied that the action taken whereby the penalty of ten per cent was later increased to 25 per cent was arbitrary or capricious. The defendant denied that the complainant was entitled to any relief whatever.

Only two witnesses testified during the hearing before the chancellor.

The appellant, Noel Monaghan, Chairman of the State Tax Commission, testified that he had delegated authority in writing to H. N. Eason, as Chief of the Income Tax Division, to impose penalties and issue warrants and to do all things necessary to be done to carry out the duties of his office as Chief of the Income Tax Division. The appellant identified and offered in evidence the power of attorney which he had executed on November 1, 1956, appointing H. N. Eason as Chief of the Income Tax Division; and the appellant stated that Eason had acted under that power of attorney since that date. Eason had discussed with him practically all of the delinquencies which had resulted in the imposition of penalties since that time, including the penalty imposed in this case; but the appellant did not remember that he had specifically directed the imposition of the penalty.

Henry N. Eason, Chief of the Income Tax Division, testified that the fourth installment of the complainant's tax for 1956 became delinquent from and after December 15, 1957. A notice reminding the taxpayer of his delinquency was mailed to him on January 8, 1958, and on February 7, 1958, another notice was mailed to him advising him that, when the tax became sixty days delinquent, the minimum penalty of 10 per cent and interest in addition to the installment would be exacted. The tax still remained unpaid and on February 17, 1958, a 10 per cent penalty and interest were assessed, and the complainant was duly notified. The delinquency continued, and on March 7, 1958, the 25 per cent penalty was assessed, together with interest, and notice thereof was given to the complainant, as alleged in the bill of complaint. Eason stated that similar notices were sent to all other delinquent taxpayers, who had failed to pay the December 15, 1957, installments of their income taxes, and that similar penalties were imposed on all other taxpayers who had failed to pay the amounts due on or before February 17, and March 7, 1958, respectively.

At the conclusion of the testimony the chancellor held that there was nothing in the statute under which the penalties complained of were imposed which was repugnant to the provisions of Section 33 of the State Constitution or the provisions of the Constitution of the United States and particularly the Fourteenth Amendment thereof; that the statute was constitutional and valid; that the commissioner had the power to delegate to the Chief of the Income Tax Division authority to impose the penalties; and that the complainant was not entitled to the relief prayed for in his bill of complaint. A decree was therefore entered dismissing the bill of complaint.

The appellant assigns and argues six points as ground for reversal of the decree of the lower court:

(1) That the assessment of the penalty provided for in Section 9220-24, Code of 1942, Recompiled, was void because of the commissioner's failure to issue a distraint warrant for the collection of the tax as required by Code Section 9220-27, prior to the assessment of the penalty.

(2) That the assessment of the penalty by the commissioner under authority of Section 9220-24 was invalid for the reason that no provision is made in the statute for a hearing upon the question of the taxpayer's liability for the penalty or for a review of the action of the commissioner in imposing the penalty.

(3) That the provisions of the statute (Code Section 9220-24, supra,) authorizing the commission in his discretion to impose a penalty of not less than ten per cent and not more than 25 per cent, in case of default in the payment of any installment, are invalid in that they represent an unconstitutional attempt on the part of the Legislature to delegate to an executive officer a power of government that is peculiarly legislative.

(4) That the assessment of the penalty in this case by the Chief of the Income Tax Division was void for the reason that the penalty was assessed in the exercise of a discretionary power vested in the commissioner, which the commissioner was not authorized to redelegate to his deputy or assistant.

(5) That the assessment of the penalty in this case was invalid for the reason that the assessment was based upon an arbitrary classification of the delinquent taxpayers made by the Chief of the Income Tax Division whereby taxpayers whose payments were sixty days delinquent were penalized ten per cent, and other taxpayers who failed to pay the ten per cent penalty were penalized at the maximum rate of 25 per cent.

(6) That, even if the...

To continue reading

Request your trial
28 cases
  • County Council for Montgomery County v. Investors Funding Corp.
    • United States
    • Maryland Court of Appeals
    • December 4, 1973
    ...power, authority vested in the Commissioner of Insurance to determine the amount of a civil monetary penalty; and Broadhead v. Monaghan, 238 Miss. 239, 117 So.2d 881 (1960), holding that in the absence of a definite legislative standard, an administrative agency could not constitutionally b......
  • Sun Valley Co. v. City of Sun Valley
    • United States
    • Idaho Supreme Court
    • August 29, 1985
    ...v. Environmental Protection Agency, 303 N.E.2d 606, (Ct.App.Ill.1973); U.S. Steel v. State, 397 P.2d 440 (Wash.1964); Broadhead v. Monaghan, 117 So.2d 881 (Miss.1960). The Idaho legislature has statutorily delegated to municipal corporations numerous general powers, as delineated in Idaho C......
  • Miss. Power Co. v. Miss. Pub. Serv. Comm'n
    • United States
    • Mississippi Supreme Court
    • June 11, 2015
    ...case may be decided on other grounds.” Warner–Lambert Co. v. Potts, 909 So.2d 1092, 1093 (Miss.2005) (citing Broadhead v. Monaghan, 238 Miss. 239, 255, 117 So.2d 881, 888 (1960) ).5 ¶ 8. Pursuant to Section 77–3–72 of the Mississippi Code, the Commission's Ordershall not be vacated or set a......
  • Hall v. State, 57940
    • United States
    • Mississippi Supreme Court
    • February 9, 1989
    ...v. City of McComb, 212 Miss. 730, 55 So.2d 479 (1951); Wheeler v. Shoemake, 213 Miss. 374, 57 So.2d 267 (1952); Broadhead v. Monaghan, 238 Miss. 239, 117 So.2d 881 (1960); Peterson v. State, 268 So.2d 335 (Miss.1972); Masonite Corp. v. State Oil and Gas Board, 240 So.2d 446 (Miss.1970); And......
  • Request a trial to view additional results
1 books & journal articles
  • Judicial Views On Tax Administration
    • United States
    • Political Research Quarterly No. 16-1, March 1963
    • March 1, 1963
    ...liability for back taxes be- cause no fiscal officer had ever made a direct ruling on the point on which the 24 Broadhead v. Monaghan, 238 Miss. 239, 117 So.2d 881 Interstate Motor Freight System v. Bowers, 170 O.S. 483, 166 N.E.2d 229 (1960). 12 asserted liability was based.26 The distinct......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT