Hover Motors, In re

• Decision Date: 13 March 1950
• Docket Number: No. 16265,16265
• Citation: 121 Colo. 439,217 P.2d 863
• Parties: In re HOVER MOTORS, Inc. CITY AND COUNTY OF DENVER et al. v. HOVER MOTORS, Inc.
• Court: Colorado Supreme Court

Page 863

217 P.2d 863

121 Colo. 439

In re HOVER MOTORS, Inc. CITY AND COUNTY OF DENVER et al. v. HOVER MOTORS, Inc.

No. 16265.

Supreme Court of Colorado, en Banc.

March 13, 1950.

J. Glenn Donaldson, Denver, Charles, H. Haines, Denver, for plaintiffs in error.

Harry A. King, Denver, Emory L. O'Connell, Denver, for defendant in error.

HAYS, Justice.

Defendant in error, a licensed automobile dealer, is engaged principally in the business of buying, exchanging, selling, and trading in motor vehicles, trailers and semitrailers. Its stock of merchandise was assessed for the year 1948 upon the average amount of money invested in merchandise during each calendar momth of the taxable year in accordance with the following statute:

Sections 6 and 7, chapter 158, S.L. '43, under which the above assessment was made, provide:

'Section 6. Section 54, of Chapter 142, 1935 Colorado Statutes Annotated, is hereby amended to read as follows:

'Section 54. Average of Merchandise and Manufactures. In ascertaining the amount of moneys of any taxpayer invested in merchandise or in manufactures, the assessor shall ascertain the average amount during the fiscal year for which the tax is to be levied; and the average amount of money invested in such merchandise or manufactures during twelve months ending with the last day of February of such fiscal year shall be taken as a true measure of the value of such merchandise or manufactures for such fiscal year.

'Section 7. Section 55, of Chapter 142, 1935 Colorqado Statutes Annotated, is hereby amended to read as follows:

'Section 55. Average of Moneys Invested--Manufacturer Defined. In listing the credits and moneys invested in merchandise or manufactures, the person making the list shall state the average of such moneys and credits invested in such merchandise or manufactures, during each calendar month of the year ending with the last day of February of the then current year. * * *'

Section 4, Article X, of the Constitution, exempts from taxation, 'The property, real and personal, of the state, counties, cities, towns and other municipal corporations and public libraries * * *.' Section 5 of said article exempts real and personal property 'that is used solely and exclusively for religious worship, for schools or for strictly charitable purposes, also cemeteries not used or held for private or corporate profit.' Section of said article, as amended November 3, 1936, S.L. '37, p. 326, provides:

'Section 6. All laws exempting from taxation, property other than that hereinbefore mentioned, shall be void: Provided however, that the General Assembly shall enact laws classifying motor vehicles, trailers and semi-trailers and requiring the payment of a graduated annual specific ownership tax thereon, which said tax shall be in addition to, and payable to the proper county officer at the same time as state registration or license fees.

'Said graduated annual specific ownership tax shall be in lieu of all ad valorem taxes upon such property, and shall be distributed, apportioned, credited and paid over to the State and its political subdivisions as provided by law with reference to ad valorem taxes; Provided further, that such laws shall not exempt from ad valorem taxation motor vehicles, trailers and semitrailers in process of manufacture, or held in storage, or which constitute the stock of manufacturers, or distributors thereof or of dealers therein.' (Emphasis supplied.)

Chapter 127, S.L. '47, in so far as pertinent, provides:

'Section 1. Sub-section 108(a)(4), Chapter 16, 1935 Colorado Statutes Annotated, as amended by Section 1, Chapter 94, Session Laws of Colorado of the year 1937, and as further amended by Section 5, chapter 80, Session Laws of Colorado of the year 1941, be and the same is hereby amended to read as follows:

'(4) Upon any motor vehicle, trailer or semi-trailer purchased in any registration year, there shall be paid only such portion of such fee as the number of calendar months remaining in such registration year after date of...