Illinois Cent. R. Co. v. Miller

• Decision Date: 04 January 1926
• Docket Number: 25160
• Citation: 106 So. 636,141 Miss. 223
• Court: Mississippi Supreme Court
• Parties: ILLINOIS CENT. R. Co. v. MILLER, STATE REVENUE AGENT. [*]

106 So. 636

141 Miss. 223

ILLINOIS CENT. R. Co. v. MILLER, STATE REVENUE AGENT. ^[*]

No. 25160

Supreme Court of Mississippi

January 4, 1926

(In Banc.).

1 TAXATION. Legislature held authorized by Constitution to provide

for special mode of assessment and valuation of railroads. Section 112 of the Constitution of 1890, providing for equality and uniformity of taxation, authorizes the legislature to provide for a special mode of assessment and valuation of railroads, and by section 7021 et seq. Hemingway's Code, chapter 247, Laws 1914, chapter 138, Laws 1918, and sections 77691 and 7769m, Hemingway's Code Supp. 1921, is provided a special scheme for the taxation of railroads.

2 TAXATION. Assessment by state board of railroad assessors held binding on both state and railroad.

Where a railroad makes the return provided by the above statutes bringing all of its property to the attention of the state assessors of railroad property, and such assessment is made on such return by the state board of railroad assessors, the assessment is res adjudicata and binding on both the state and the railroad.

3 TAXATION. Certiorari lies from state board of railroad assessors to circuit court to review assessments by it and to test legality thereof.

Sections 72 and 73, Hemingway's Code (sections 90 and 91, Code 1906), provide the method of reviewing assessments made by the state board of railroad assessors; and certiorari lies to the circuit court to review such assessments and test the legality thereof.

4. TAXATION. Railroads are assessed as a unit; specific property not shown on assessment roll, if shown in railroad's return, not subject to separate assessment or back assessments.

Railroads are assessed as a unit, and specific property, not shown on the assessment roll, if shown in the railroad's return under the above statutes, are not subject to separate assessment or back assessments.

HON. C. W. THIGPEN, Special Judge.

APPEAL from circuit court of Hinds county, first district, HON. C. W. THIGPEN, Special Judge.

Application by W. J. Miller, state revenue agent, before the state tax commission, to back-assess property of the Illinois Central Railroad Company. From a judgment of the circuit court on certiorari the railroad company appeals, and the revenue agent brings a cross-appeal. Reversed, and judgment entered for railroad company. Affirmed on cross-appeal.

See, also, 106 So. 635, and preceding case in this volume.

The state revenue agent, on the 15th day of March, 1924, filed a request with the state tax commission to back-assess the Illinois Central Railroad Company. The property listed for back assessment reads as follows:

"Additional assessment of the I. C. R. R. Co. of its capital it has engaged in the railroad business in -- county, state of Mississippi, for taxes due the municipalities and districts named below in said county, and due said county and the state of Mississippi, as below indicated, on its said capital it has engaged in said railroad business in the years below enumerated."

The notice contained assessments for each of the counties in the state through whose territory the Illinois Central Railroad runs and is operated, and was for the years 1917, 1918, 1919, 1920, 1921, and 1922. The tax commission gave the notice required by statute, and the railroad company protested against such assessments in the numerous counties, contending that it had been assessed and had paid taxes upon all of the property operated by it in the state of Mississippi. It further contended that the notice was insufficient to give it information as to what specific property it was claimed had escaped taxation. On motion of the appellant, the years 1918, 1919, and 1920 were eliminated, as the road was operated during these years by the Director General.

There was an agreed statement of facts before the tax commission as follows:

(1) Illinois Central Railroad Company is a railroad corporation, organized and existing under the laws of the state of Illinois. It was incorporated by an Act of the Illinois legislature, approved February 10, 1851. The Illinois Central Railroad Company has never been incorporated under the laws of the state of Mississippi, nor otherwise become a domestic corporation of the state of Mississippi.

"(2) In 1882 Illinois Central Railroad Company and the Chicago, St. Louis & New Orleans Railroad Company, a Mississippi corporation, entered into a contract of lease, a copy of which lease may be introduced into evidence in this proceeding without further proof or identification, except the indorsement of the secretary of state tax commission showing that it has been filed. This lease was entered into pursuant to an Act of the legislature of the state of Mississippi, approved March 1, 1882 (Laws 1882, c. 559), authorizing Illinois Central Railroad Company to lease the line of the Chicago, St. Louis & New Orleans Railroad Company. The terms of this lease have been faithfully carried out by the respective parties. The Chicago, St. Louis & New Orleans Railroad Company has not, since the execution of the said lease, operated any line of railroad in the state of Mississippi, or elsewhere, nor has the said Chicago, St. Louis & New Orleans Railroad Company ever owned any property in Mississippi, since the execution of the said lease, except that which is covered by the terms of the said lease. Illinois Central Railroad Company, since the execution of the said lease, has operated the railroad property owned by the Chicago, St. Louis & New Orleans Railroad Company, and has no connection as lessee or otherwise with any tangible property located in Mississippi, except such as is used in the operation of the railroad property of the said Chicago, St. Louis & New Orleans Railroad Company.

"(3) During the years 1918, and 1919, and for the months of January and February, 1920, the said railroad, and all the property pertaining thereto, including that part of the line located in the state of Mississippi, was under federal control pursuant to the proclamation of the President of the United States, and the terms of the Federal Control Act, the same being an Act of Congress approved March 21, 1918 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, sections 3115 3/4a-3115 3/4p). Pursuant to the terms of this act, a contract was entered into on the 9th day of June, 1919, between Illinois Central Railroad Company and the Director General of Railroads. A copy of this contract may be offered in evidence in this proceeding without further proof or identification other than the indorsement of the secretary of the state tax commission, showing that it has been filed. During the period of federal control all of the said railroad was operated solely by the Director General of Railroads, and Illinois Central Railroad Company had nothing whatever to do with such operation during the federal control period.

"(4) During the period covered by the back tax assessment involved in this proceeding, to-wit, the years 1917, 1918, 1919, 1920, 1921, and 1922, Illinois Central Railroad Company for all of this period, except the period of federal control, and the director general of railroads for the period of federal control, filed with the board of state railroad assessors, upon forms prescribed by such board, and in the manner required by such board, complete schedules relating to the said railroad operated by the Illinois Central Railroad Company and the director general of railroads, respectively, which schedules are of record in the office of the state tax commission and shall be considered as having formally offered and received in evidence in this proceeding. These schedules embrace all the property of the Chicago, St. Louis & New Orleans Railroad Company located in the state of Mississippi during the period of years mentioned, including the railroad leased to the Illinois Central Railroad Company, as aforesaid. Upon receiving the assessment rolls above referred to, the commission entered orders of assessment for each of said years. The orders of assessment so made by the tax commission, the assessment rolls pertaining thereto, and all orders, notations, and entries on such rolls and on the minute books and other records of said board are to be considered as having been offered and received as evidence in this proceeding. The assessment so made for each of the years 1917-1922, inclusive, were, in due course and as required by law, duly certified by the secretary of the board of state railroad assessors to the clerks of the boards of supervisors in each county where any of the said railroad property was situated, and such proceedings were thereafter had in each such county as led to the payment by Illinois Central Railroad Company for all the said period, except the period of federal control, and by the director general of railroads for the period of federal control, of all taxes of whatsoever kind, character, and description as were due under such assessment. It is expressly agreed that for the period of federal control the director general paid, and, for the balance of the period, Illinois Central Railroad Company paid, in full to the proper county, municipality, road district, school district, drainage district, and other taxing districts all taxes of every kind which were assessed against said property.

"The amount of the said assessments and the amount of taxes paid thereon for each of the years involved are as follows:

1917

$ 17,714,14

$ 446,720.3

1918

18,771,455

513,045.78

1919

17,822,445

570,445.42

1920

19,236,186

877,008.92

1921

19,467,045

837,368.00

1922

19,468,993

816,496.41

For these years Illinois Central Railroad Company paid in privilege taxes the sum of one hundred six thousand five hundred ninety-two dollars...