Fleischer Studios, Inc. v. Paxson

• Decision Date: 13 May 1941
• Parties: FLEISCHER STUDIOS, Inc., v. PAXSON et al.
• Court: Florida Supreme Court

2 So.2d 293

147 Fla. 100

FLEISCHER STUDIOS, Inc., v. PAXSON et al.

Florida Supreme Court

May 13, 1941

Appeal from Circuit Court, Dade County; Arthur Gomez Judge.

Aronovitz & Goldstein, of Miami, for appellant.

Hudson & Cason, of Miami, for appellees Lamar Paxson, Charles H. Crandon, Cecil A. Turner, N. P. Lowry, and J. D. Redd, as and constituting Board of County Com'rs in and for Dade County.

Stapp Ward & Ward, of Miami, for appellee N. N. Lummus, Jr., as Tax Assessor of Dade County.

Melbourne L. Martin, of Miami, for appellee Hayes Wood, as Tax Collector of Dade County.

Loftin Calkins, Anderson & Scott, of Miami, amicus curiae.

WHITFIELD, Justice.

The appeal herein was taken from a decree dismissing without prejudice to plaintiff a bill of complaint in equity, seeking injunctive relief from taxation of property claimed under added section 14, Article IX, constitution of Florida.

The power to impose and collect taxes upon persons and property is an attribute of sovereignty; and it is essential to the maintenance and operation of government. The exercise of the sovereign power of taxation in imposing taxes and in exemptions from taxation is regulated by the constitution and by valid statutes, the subjects of taxation and the nature and extent of the tax being determined by State law, subject to the dominant applicable Federal Law. Long v. St. John, 126 Fla 1, 170 So. 317, 109 A.L.R. 809; Gray v. Winthrop, 115 Fla. 721, 156 So. 270, 94 A.L.R. 804.

The State constitution provides that no tax shall be levied except in pursuance of law. Sec. 3, Art. IX.

'The Legislature shall provide for a uniform and equal rate of taxation, * * * and shall prescribe such regulations as shall secure a just valuation of all property, both real and personal, excepting such property as may be exempted by law for municipal, education, literary, scientific, religious or charitable purposes.' Sec. 1, Art. IX.

'The property of all corporations * * * whether heretofore or hereafter incorporated, shall be subject to taxation unless such property be held and used exclusively for religious, scientific, municipal, educational, literary or charitable purposes.' Sec. 16, Art. XVI. See also section 1, Art. X.

Section 1, Article IX, authorizes only specific classes of property to be exempted by law for stated purposes. Maxcy, Inc., v. Federal Land Bank of Columbia, 111 Fla. 116, 150 So. 248, 151 So. 276. While section 16, Article XVI, may be self-executing and cannot be changed by legislative enactment. Lummus v. Florida-Adirondack School, Inc., 123 Fla. 810, 168 So. 232; Lummus v. Miami Beach Congregational Church, 142 Fla. 657, 195 So. 607.

Added section 7, Article X, adopted November, 1934, provides:

'There shall be exempted from all taxation, other than special assessments for benefits, to every head of a family who is a citizen of and resides in the State of Florida, the homestead as defined in Article X of the Constitution of the State of Florida up to the valuation of $5,000.00; provided, however, that the title to said homestead may be vested in such head of a family or in his lawful wife residing upon such homestead or in both. (Additional section, House Joint Resolution 20, Acts 1933, adopted at general election, November 6, 1934.)'

See also amended sec. 7, Art. X, adopted November, 1938, and amended sec. 9, Art. IX, 1940; Perm.Supp.1940, C.G.L., pp. 412, 418.

See also amended Sec. 11, Art. IX Constitution.

Added section 7, Article X, by implication amended the provisions forbidding exemption of homesteads from taxation contained in section 1, Article X, and exempted from all taxation except special assessments for benefits, homestead real estate up to the valuation of $5,000. Such organic exemption of homesteads from taxation, thereby created a new State policy as to exemptions of homestead real estate, by adding to previous stated exemptions from forced sale, exemptions from all taxation except special assessments for benefits to a stated extent, later extended by the 1938 amendment to section 7.

Original added section 7, Article X, was held to be valid except as to statutory contract rights of creditors acquired prior to the organic amendments, when county, municipal and district bonds had been legally issued and sold for duly authorized purposes pursuant to statutory requirements that taxes should be annually levied and collected upon all the taxable property in the taxing unit sufficient to pay the bonds, and such subsequent exemption of homesteads, being a large percentage of the taxable property, would materially impair the obligation of the public bond contract in violation of the contract clause of the Federal Constitution, where no adequate and certain and binding provision had been made and carried into effect and continued for supplying ample funds for meeting the contract obligations, as had been provided by law when the bond contracts were issued and sold. See Gray v. Moss, 115 Fla. 701, 156 So. 262; Gray v. Winthrop, 115 Fla. 721, 156 So. 270, 94 A.L.R. 804; Folks v. County of Marion, 121 Fla. 17, 163 So. 298, 102 A.L.R. 659; State v. Port of Palm Beach District, 121 Fla. 746, 164 So. 851; State v. Carey, 121 Fla. 515, 164 So. 199; State v. Borning, 121 Fla. 781, 164 So. 859.

In 1930 and 1934 the State policy of exempting property from all ad valorem taxation was by constitutional amendments extended with definite limitations to what is generally called 'new industries' established in this State, the purpose being to encourage new enterprises to increase the business activities of the State with consequent additions to the population and the development and utilization of the natural resources of the State for the general welfare.

The organic amendments are as follows:

'Section 12. For a period of fifteen years from the beginning of operation, all industrial plants which shall be established in this State on or after July 1, 1929, engaged primarily during said period in the manufacture of steel vessels, automobile tires, fabrics and textiles, wood pulp, paper, paper bags, fiber board, automobiles automobile parts, aircraft, aircraft parts, glass and crockery manufacturers and the refining of sugar and oils, and including by-products or derivatives incident to the manufacture of any of the above products, shall be exempt from all taxation, except that no exemption which shall become effective by virtue of this amendment shall extend beyond the year 1948.

'The exemption herein authorized shall not apply to real estate owned and used by such industrial plants except the real estate occupied as the location required to house such industrial plants and the buildings and property situated thereon, together with such lands as may be required for warehouses, storage, trackage and shipping facilities and being used for such purposes. (Additional section, Senate Joint Resolution 89, Acts 1929; adopted at general election, November 4, 1930.)' Added section 12, Art. IX, Fla. constitution of 1885; 1936 Perm.Supp. to C.G.L., p. 3415.

'Section 14. For a period of fifteen years from the beginning of operation, motion picture studios and plants which shall be established in this State on or after July 1st, 1933, including all lands, buildings and chattels utilized in connection therewith, and all raw materials going into the finished products of such studios and plants, as well as the finished products or films, shall be exempt from all ad valorem taxation, except that no exemption which shall become effective by virtue of this amendment shall extend beyond the year 1943.

'The exemption herein authorized shall not apply to real estate owned by such motion picture studios and plants except the real estate occupied as the location required to house such motion picture studios and plants and other buildings incidental to the operation of such studios and plants, together with such lands as may be required for housing officers and employees, and for warehouses, laboratories, cutting rooms, projection rooms, storage, trackage, shipping facilities, sets and locations. (Additional section, House Joint Resolution 1441, Acts 1933; adopted at general election, November 6, 1936.)' Added sec. 14, Art. IX, Fla. constitution of 1885; 1936 Perm.Supp. to C.G.L., p. 3416.

The organic amendments exempting homestead real estate up to the assessed value of $5,000 from all taxation except special assessments for benefits, covered a considerable percentage of the long previous taxable real estate in all the counties of the State; the exemption is continuous, and is designed to encourage the acquisition of homes in this State without reference to attracting new industries.

The 1930 and 1934 amendments, added sections 12 and 14, Article IX, are primarily designed to induce new enterprises and industries to be established in different parts of the State where they could be successfully operated for the growth, development and general welfare of the State; the period of exemption is limited, and the property covered by the exemptions will naturally be in a few counties of the State; and a relatively small percentage of the taxable property in the State will be exempted from all taxation under Section 12 and from all ad valorem taxation under section 14 of Article IX of the State constitution.

Section 12 quoted above has been judicially construed and applied in the following cases: City of Jacksonville v. Continental Can Co., 113 Fla. 168, 151 So. 488; City of Jacksonville v. Glidden Co., 124 Fla. 690, 169 So. 216; City of Tampa v. Tampa Shipbuilding & Engineering Co., 136 Fla. 216, 186 So. 411; Burnett v. American Welding & Tank Co., 143 Fla. 740, 197 So. 458. See also National Container Corp. v. State, 138 Fla. 32, 189 So. 4...