German Gym. Ass'n of Lville. v. City of Lville
| Decision Date | 26 March 1948 |
| Citation | 306 Ky. 810 |
| Parties | German Gymnastic Ass'n Of Louisville v. City Of Louisville et al. |
| Court | United States State Supreme Court — District of Kentucky |
1. Taxation. — A gymnastic association, where regular gymnastic exercises are taught and a teacher in physical culture is constantly employed, is not an "institution of education," within Constitution exempting such institution from taxation. Const. sec. 170.
2. Judgment. — An adjudication, not involving tax exemption under a contract or franchise between taxing authority and taxpayer, upon the question of liability for taxes for one year, is no bar to an action for taxes assessed for a subsequent year; the taxes for each year representing a different cause of action.
3. Taxation. — Liability for taxes of a gymnastic association previously held within the constitutional exemption from taxation of "institutions for education" began as of the effective date of a subsequent Court of Appeals decision overruling the previous determination. Const. sec. 170.
Appeal from Jefferson Circuit Court.
Oldham Clarke, James M. Cuneo, Alfred C. Krieger, Allen, McElwain, Dinning, Clarke & Ballantine and Krieger & Huffaker for appellant.
Gilbert Burnett and Alex P. Humphrey for appellees.
Before W. Scott Miller, Judge.
Affirming in part, reversing in part.
This appeal is from a judgment holding the German Gymnastic Association of Louisville liable for taxes imposed by the City for the years 1942 to 1946 inclusive. Three propositions are urged for reversal: (1) The Association is an educational institution within the meaning of Section 170 of the Constitution, and therefore is exempt from taxation; (2) the judgment of this Court in 1904, holding that the Association is an educational institution within the meaning of Section 170 of the Constitution, is res adjudicata, and bars any subsequent taxation of its property; and (3) if the Association is subject to taxation, its liability would begin with the effective date of the decision in the case at bar.
In the case of German Gymnastic Association v City of Louisville, 117 Ky. 958, 80 S.W. 201, 65 L.R.A. 120, 111 Am. St. Rep. 287, decided in 1904, this Court held that the Association was an educational institution, not employed for gain, within the meaning of Section 170 of the Constitution, and therefore was exempt from taxation. In the recent case of Kesselring v. Bonnycastle Club, 299 Ky. 585, 186 S.W. 2d 402, wherein we held the Club subject to taxation, we had occasion to comment upon the ruling in the Association's case decided in 1904. In fact we said the opinion should be overruled. But such a statement was not necessary to uphold the ruling in the Bonnycastle Club case. The methods of operation of the two organizations were discussed and distinctions drawn. There appear to have been no material changes in the Association's methods of operation since 1904. Counsel for the Association have sought diligently to show that its activities are such as to warrant its exemption from taxation, and also that the statement in the Bonnycastle Club case overruling the opinion in the case of 1904 is dictum. From what has already been said it may be conceded that the opinion in the Bonnycastle Club case would have no binding effect upon the Association, insofar as any tax liability is concerned. However, we think the general principles discussed in the Bonnycastle Club case are applicable here and we now reaffirm them and thereunder hold that the Association should no longer be classed as an educational institution.
In support of the Association's proposition that this Court's ruling in the former case is res adjudicata, and therefore bars any subsequent taxation of the Association's property, it cites the...
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