City of Pineville v. Board of Education, Etc.

• Decision Date: 18 March 1938
• Parties: City of Pineville v. Board of Education of Pineville Independent School Dist.
• Court: United States State Supreme Court — District of Kentucky

272 Ky. 636

City of Pineville v. Board of Education of Pineville Independent School Dist.

Court of Appeals of Kentucky.

Decided March 18, 1938.

Schools and School Districts. — The penalties and interest collected by fourth class city on school taxes must be paid to board of education, since statute authorizing city council to determine penalty does not authorize council to require payment of penalty and interest into general fund but, after amounts of interest and penalty have been fixed, the statute controls the disposition thereof (Ky. Stats., secs. 3544a-1, 4399-40, 4399-41).

Appeal from Bell Circuit Court.

JAMES S. WILSON for appellant.

E.B. WILSON for appellee.

OPINION OF THE COURT BY CHIEF JUSTICE STITES.

Affirming.

The City of Pineville is a municipal corporation of the fourth class. The corporate boundaries of the Pineville Independent School District are coextensive with those of the city. During each of the years from 1933 to date the city council of Pineville has levied by ordinance a regular ad valorem tax for city purposes and also as required by law for school purposes. In each ordinance the council has provided for the imposition of a penalty of 10 per cent., together with interest upon all taxes not paid when due. Kentucky Statutes, sec. 3544a-1. Each ordinance has likewise provided that the penalty and interest on delinquent taxes "shall be paid into the general municipal expense fund when collected." The penalties and interest were figured on the face of the tax bills on both city taxes and school taxes, but the entire amount collected has been paid into the city's general fund. It is agreed that the amount thus appropriated to the general fund and representing the penalties and interest on school taxes is $501. This proceeding was brought by the Board of Education against the city to recover the penalties and interest thus appropriated on the theory that these funds are required by law to be paid to it and that it is improper to turn them over to the city's general fund.

Section 4399-40 of the Kentucky Statutes covering the levy and collection of taxes for school purposes provides, in part:

"The laws applying to penalties on and the collection of delinquent school taxes shall be the same as the general laws applying to penalties on and the collection of delinquent taxes of the taxing districts which embrace the various school districts."

It is not disputed but that, where the school board designates a special tax...