Crowder v. Riggs

• Decision Date: 09 June 1899
• Citation: 153 Ind. 158,53 N.E. 1019
• Parties: CROWDER et al. v. RIGGS, County Auditor.
• Court: Indiana Supreme Court

153 Ind. 158

53 N.E. 1019

CROWDER et al.

v.RIGGS, County Auditor.¹

Supreme Court of Indiana.

June 9, 1899.

Appeal from circuit court, Sullivan county; W. W. Moffett, Judge.

Suit by William H. Crowder and others against James R. Riggs, auditor of Sullivan county, etc. There was a decree for defendant, and plaintiffs appeal. Affirmed.

Briggs & Lindley, for appellants. John S. Bays, for appellee.

MONKS, J.

This suit was commenced by appellants to enjoin appellee, as auditor of Sullivan county, from placing upon the tax duplicate certain property of appellants for the years 1891, 1892, 1893, and 1894. The court made a special finding of facts, and stated conclusions of law thereon in favor of appellee, and rendered judgment against appellants. The only errors assigned call in question the conclusions of law.

It was found by the court that appellants were in the banking business as partners in Sullivan county, Ind., from 1875 until November, 1895, and that for a number of years prior to 1895 they omitted from their tax schedule of their partnership property belonging to said firm of bankers, subject to taxation, large sums of money which had been by said firm exchanged for greenback currency of the United States of America for the purpose of escaping taxation, and that the same had wholly escaped taxation. The finding states the amount of money subject to taxation which was by appellants exchanged for greenbacks in each of said years for the purpose of escaping taxation thereon. The act of congress authorizing the states to tax United States legal-tender and other notes and certificates of the United States was approved August 13, 1894 (28 Stat. 278). Since said act took effect, greenbacks have been taxable in this state. Under the facts found, the taxing officers were authorized and required by statute to list and value the taxable property so converted into greenbacks, the same being then nontaxable property. Section 52, p. 213, Acts 1891 (section 8462, Burns' Rev. St. 1894; section 6320, Horner's Rev. St. 1897). Said section of the tax law of 1891 imposed this duty upon the assessor, but, if such duty is not performed by that officer, it is imposed upon the auditor, county assessor, and other taxing officers, by other sections of the tax law. State v. Real-Estate Building & Loan Ass'n, 151 Ind. 502, 51 N. E. 1061;State v. Workingmen's Building, Loan, Fund & Savings Ass'n (Ind. Sup.) 53 N. E. 168. Moreover, if the nontaxable property so received in exchange for taxable property was valued and assessed for taxation, a court of equity would not in such a case use its extraordinary power of injunction to promote the scheme of any taxpayer to escape its proportionate share of the burdens of taxation. Ogden v. Walker, 59 Ind. 460;Mitchell v. Board, 91 U. S. 206.

It is insisted by appellants that, under section 52 of the tax law of 1891 (section 8462, Burns' Rev. St. 1894; section 6320, Horner's Rev. St. 1897), the taxing officer can only go back to the time since April 1st of the preceding year, in placing upon the tax duplicate taxable property which has been exchanged for nontaxable property for the purpose of evading the payment of taxes thereon, and that, therefore, appellee in December, 1896, had no power to add any property of the kind named to the tax duplicate for any year prior to 1896. It is true, the section mentioned provides that if the assessor is satisfied that any person required to list his property has since the 1st day of April of the preceding year converted any part of his property into property not taxable, for the purpose of evading the payment of taxes thereon, such assessor shall cause such property to be assessed at its true cash value. This is the duty of the assessor every year when he lists the property of each taxpayer. If he fails to discharge this duty, however, for one or any number of years, the other taxing officers have the power, and it is their duty, to assess the same for such years as omitted property, under other sections of the tax law, the same as other omitted property. State v. Real-Estate, Building & Loan Ass'n, 151 Ind. 502, 503, 51 N. E. 1061.

It is also urged that the notice given by appellee to appellants, under section 142, p. 257, Acts 1891 (section 8560, Burns' Rev. St. 1894; section 6409, Horner's Rev. St. 1897), to appear and show cause, if any, why certain property claimed to be omitted from their assessments for the years named therein should not be added to the tax duplicate, was insufficient, for the reason that it was not as specific as the law requires. When any one seeks the aid of a court of equity to enjoin the assessment of property for taxation, or the collection of taxes, he cannot obtain relief on the ground of the...