City of Columbia v. Tindal
| Decision Date | 15 April 1895 |
| Parties | CITY OF COLUMBIA v. TINDAL, Secretary of State. |
| Court | South Carolina Supreme Court |
Petition by the city of Columbia for an injunction to restrain James E. Tindal, as secretary of state, from proceeding to enforce the collection of a tax. Granted.
The complaint and answer referred to in the opinion are as follows:
"The petition of the city of Columbia respectfully showeth to your honors: First. That your petitioner is a municipal corporation of the state of South Carolina, having been originally chartered by the legislature of said state as the town of Columbia, in the year 1824 (6 St. at Large, p 240), and said charter having been from time to time renewed and amended, and its present charter, under the name of the 'City of Columbia,' having been granted by said legislature on the 21st day of December, A. D 1854. 12 St. at Large, p. 333. Second. That a lot of land within the limits of said city, on the northwest corner of Main and Washington streets, was vested in said municipality by authority of an act of the legislature in 1818 (6 St. at Large, p. 102), and by other acts of assembly, and has since been a part of its property. The said town of Columbia caused to be erected on said lot of land, many years ago, its guard house and fire engine house, and also another building, known as the 'Town Hall,' but which was used, also, on its ground floor as the public market of the town. The large hall on the second floor was used for public town meetings, and was also rented out from time to time for exhibitions and entertainments. In this building were also the council chamber and clerk's office, and in its tower was the town clock, and lookout for the watchmen of the town. All of these buildings on said lot of land were totally destroyed by fire on the night of February 17-18, 1865. Third. In the year 1866, the legislature confirmed to the city of Columbia its title to the lot of land aforesaid, and also vested in said city another lot of land, adjoining on the west, known as the 'Jail Lot,' upon a condition which was fully complied with by said city; but from the year 1865 to the year 1871 the said city council was without any public buildings of its own, to its very great inconvenience and expense. In the year last named a resolution was adopted by the city council of Columbia, looking to the erection of a city hall, and a committee was appointed, with instructions to call for plans for such a building. Plans were accordingly furnished by an architect, and under said plans the building hereinafter described as the 'City Hall' was erected, and now stands upon said lot of land, and is the property of the said municipality, the city of Columbia. At or about the same time a public market house for said city was erected at another spot, to wit, in one of the public streets of said city. Fourth. The said city council not having in hand the funds necessary for the erection of the desired buildings, and the cost thereof being in excess of any proper tax levy, in addition to what was required for the ordinary expenses of government, the said city council passed its resolution providing for a loan of $75,000, to be used in the erection of said city hall, and directed the issue of $250,000 in bonds of said city, to be used as a collateral pledge for the repayment of said loan. Fifth. On March 13, 1872, the general assembly of the state of South Carolina passed an act authorizing the issue of bonds, which, with the bonds then outstanding, and including the said city hall bonds, should not exceed the sum of $600,000, for the purpose of constructing the city hall and new market (15 St. at Large, p. 220); and by the tenth section of said act it was provided and declared that the income derived by the city of Columbia from rentals of any portion of said city hall should be appropriated as a sinking fund for the ultimate redemption of the bonds so issued under said act. Sixth. The bonds so directed and authorized by the act of assembly were accordingly issued, and the provisions of the said tenth section of the act of 1872 were printed on the back of each and every of said bonds. And the bonds provided for by the said resolution of city council were taken up and retired, and all the moneys received from the sale or hypothecation of said statutory bonds were used in the erection of said city hall, and all bonds hypothecated were sold by the pledgors for the payment of the loans for which they were hypothecated. Seventh. The city hall so erected contains the following rooms and apartments, to wit: (1) The council chamber of the city council, and so used. (2) The office of the clerk of council, and so used. (3) The office of the chief of police, and so used. (4) The police court room, and so used. (5) The tower constantly used by the day and night watchmen of the city, and in which is hung a large bell used for striking the hours and for a fire alarm. And from none of the rooms or apartments aforesaid has any rent ever been received. (6) A large room used for some time as the office of the city engineer and of the board of trustees of the Columbia Canal, but now rented to a military company of this city as an armory. (7) Four stores on the ground floor, which are and have been rented out. (8) A small hall on the upper floor, occupied and rented by an association known as the 'Knights of Pythias.' (9) A large room on the upper floor, rented to a military company of this city as an armory. (10) A large room, known as the 'Opera House,' with rooms appurtenant for players, and for the lessee and his family. This last-named hall is rented for a consideration; the city reserving the right of its use to its citizens, when required by them for any public or charitable meetings or educational celebrations of the citizens, on paying for lights. Eighth. That the said building was erected by the city of Columbia of very lasting materials, at great cost, and with the hope and belief that the future growth of the city would demand larger accommodations for the city government, and with an earnest conviction that the city hall of the capital city of the state should be an ornament to the state, as well as to the city; and the construction and addition of rooms and apartments beyond the present demands of the city, for the proper accommodation of the city government, was only incidental to its declared purpose of erecting a city hall for the public uses of the city government. Ninth. That some of the rooms and apartments in said building have been completed by the lessees thereof, as the consideration for their lease, and parts of the interior of said building are still unfinished. During the whole time that the city has been in receipt of rents therefrom, the aggregate sum received up to December 31, 1893, inclusive, amounted to $48,694.50, and the aggregate disbursements on account of repairs and improvements have amounted to $48,270.85,--an excess of $423.65 of receipts over disbursements. Tenth. That your petitioner never paid any state or county taxes on the buildings on said lot which were destroyed by fire in February, 1865, and no such payment was ever demanded, and has never paid any state or county taxes on said city hall building, conceiving that the said building was not specifically subject to taxation under any statute of this state, and not generally liable, as the said building was the property of one of the agencies of the state government. And your petitioners aver that it is not so subject to taxation. Eleventh. But the Honorable J. E. Tindal, who is secretary of the state of South Carolina, and agent of the commissioners of the sinking fund, being advised that the said city hall building is liable to the payment of state and county taxes during all the years that it has so failed to pay any taxes, has given notice to the said city of Columbia that there is due to the state of South Carolina, for state and county taxes, the tax levy of the year 1877, and every year thereafter, together with the legal penalty for nonpayment, and threatens to collect the same by causing the said building to be seized and sold under the terms of the act of 1892, entitled 'An act to provide an additional remedy for the collection of taxes, costs, and penalties upon lands past due and unpaid for eight months.' 21 St. at Large, p. 82. Whereas, your petitioner avers that the said building is not subject to taxation, and that there is nothing in the said act of 1892, or any other statute, which authorizes the secretary of state, as agent of the commissioners of the sinking fund, or any other officer of the state government, to take any steps whatsoever looking to the assessment and collection of any tax whatsoever on the said city hall...
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