House v. City of Saginaw, No. 70

CourtSupreme Court of Michigan
Writing for the CourtDETHMERS; NORTH
Citation54 N.W.2d 314,334 Mich. 241
Decision Date27 June 1952
Docket NumberNo. 70
PartiesHOUSE et al. v. CITY OF SAGINAW et al.

Page 314

54 N.W.2d 314
334 Mich. 241
HOUSE et al.
v.
CITY OF SAGINAW et al.
No. 70.
Supreme Court of Michigan.
June 27, 1952.

[334 Mich. 242] W. Vincent Nash, Russell A. Schafer, R. James Harvey, Saginaw, for defendants and appellants.

Murphy & Murphy, Saginaw, for plaintiffs and appellees.

Richard H. Paulson, City Atty. of Kalamazoo, amicus curiae for Muskegon and other cities.

Roscoe O. Bonisteel, Ann Arbor, Ballard, Jennings, Bishop & Frazer, Lansing, amicus curiae.

Before the Entire Bench.

DETHMERS, Justice.

The city of Saginaw is a home rule city. On February 5, 1951, Section 45 of Chapter VII of its charter entitled 'Adoption of Budget, Tax Limit' provided:

'The council shall, by resolution, determine and adopt the budget and make the appropriations for the next fiscal year and shall provide, by resolution, for a tax levy of the amount necessary to be raised [334 Mich. 243] by taxation, which shall not exceed one and one-half per cent (1 1/2%) of the assessed value of all real and personal property subject to taxation in the city, in conformity with and subject to Section 21, Article 10, of the Constitution of Michigan and the state law pertaining thereto.'

The council adopted a resolution proposing to amend said section as follows:

'Adoption of Budget, Tax Limit, Excise Tax

'Section 45(a) The Council shall, by resolution, determine and adopt the budget and make the appropriations for the next fiscal year. It shall provide, by resolution, for a tax levy of the amount necessary to be raised by taxation, for city purposes, on real and personal property, which shall not exceed one per cent (1%) of the assessed

Page 315

value of all real and personal property subject to taxation in the city.

'Section 45(b) For a period of ten (10) years beginning January 1, 1952, the Council may, by ordinance, provide for the levy and assessment of a specific excise tax of not to exceed one per cent (1%) per annum upon the following: (1) All salaries, wages, commissions and other compensation earned (a) by residents of the city and (b) by non-residents of the city for work done or services performed or rendered in the city; (2) the net profits of all businesses, professions or other activities (a) conducted by residents of the city and (b) conducted in the city by non-residents; and (3) that part of the net profits earned as a result of work done or services performed or rendered and business or other activities conducted in the city by corporations having an office or place of business in the city.

'The council may prescribe by ordinance all things it may deem necessary to exercise effectively the authority herein granted, including but not limited to the following: a penalty of not to exceed five per cent (5%) of the amount of any unpaid tax for each month or fraction of a month for the first five (5) months of nonpayments; interest on any tax not paid when due at not more than the rate of one-half of one per cent (1/2 of 1%) per month; the [334 Mich. 244] collection of any tax, including interest and penalties, herein authorized without respect to said ten (10) year period and by any method available for the collection of a debt owed to the city; and the examination of books, records and paper necessary to determine tax liability thereunder.' (Section 45[c]. This subsection defined 'association', 'business', 'corporation', 'net profits', 'non-resident' and 'resident'.)

'Section 45(d) The net receipts from the tax authorized by Section 45(b) hereof, after providing for all costs of collection, shall be accumulated in each fiscal year until March 31, and as soon thereafter as possible such net receipts shall be distributed as follows:

'First, an amount equal to three-tenths of one per cent (3/10 of 1%) of the assessed valuation of the real and personal property subject to taxation in the city shall, insofar as funds are available, be transferred to the General Fund, and the tax limit created by Section 45(a) hereof...

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3 practice notes
  • Dooley v. City of Detroit, Nos. 53
    • United States
    • Supreme Court of Michigan
    • May 9, 1963
    ...submission to electors of a proposal authorizing an income tax was declared invalid by this Court in 1952 in House v. City of Saginaw, 334 Mich. 241, 54 N.W.2d 314, for failure of compliance with procedural requirements. The issues presented to us in this appeal are, therefore, issues of fi......
  • Graham v. Miller, No. 207
    • United States
    • Supreme Court of Michigan
    • June 29, 1957
    ...an amendment submitted as a single question, citing 15 McQuillin on Municipal Corporations (3d ed.), § 40.09, House v. City of Saginaw, 334 Mich. 241, 54 N.W.2d 314, and Livingstone v. Board of Election Commissioners of Wayne County, 174 Mich. 485, 141 N.W. 122. Livingstone holds merely tha......
  • Henry v. City of Pontiac, No. 16
    • United States
    • Supreme Court of Michigan
    • June 28, 1961
    ...Mich. 212, 242 N.W. 891; Michigan Public Service Co. v. City of Cheboygan, 324 Mich. 309, 37 N.W.2d 116, and House v. City of Saginaw, 334 Mich. 241, 54 N.W.2d 314. In the Kelly case it was said generally of said section Page 837 21, referring to the section as it stood at the time (C.L.192......
3 cases
  • Dooley v. City of Detroit, Nos. 53
    • United States
    • Supreme Court of Michigan
    • May 9, 1963
    ...submission to electors of a proposal authorizing an income tax was declared invalid by this Court in 1952 in House v. City of Saginaw, 334 Mich. 241, 54 N.W.2d 314, for failure of compliance with procedural requirements. The issues presented to us in this appeal are, therefore, issues of fi......
  • Graham v. Miller, No. 207
    • United States
    • Supreme Court of Michigan
    • June 29, 1957
    ...an amendment submitted as a single question, citing 15 McQuillin on Municipal Corporations (3d ed.), § 40.09, House v. City of Saginaw, 334 Mich. 241, 54 N.W.2d 314, and Livingstone v. Board of Election Commissioners of Wayne County, 174 Mich. 485, 141 N.W. 122. Livingstone holds merely tha......
  • Henry v. City of Pontiac, No. 16
    • United States
    • Supreme Court of Michigan
    • June 28, 1961
    ...Mich. 212, 242 N.W. 891; Michigan Public Service Co. v. City of Cheboygan, 324 Mich. 309, 37 N.W.2d 116, and House v. City of Saginaw, 334 Mich. 241, 54 N.W.2d 314. In the Kelly case it was said generally of said section Page 837 21, referring to the section as it stood at the time (C.L.192......

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