Illinois Central Gulf RR Co. v. Bair, Civ. No. 83-147-C.
| Decision Date | 20 December 1985 |
| Docket Number | Civ. No. 83-147-C. |
| Citation | 626 F. Supp. 747 |
| Parties | ILLINOIS CENTRAL GULF RAILROAD COMPANY, Plaintiff, v. Gerald D. BAIR, Director of the Department of Revenue of Iowa, Defendant. |
| Court | U.S. District Court — Southern District of Iowa |
Frank W. Davis, Jr., Gamble, Riepe, Webster, Davis & Green, Des Moines, Iowa, for plaintiff.
Thomas Miller, Iowa Atty. Gen., Gerald A. Kuehn, Asst. Atty. Gen., for defendant.
FINDINGS OF FACT, CONCLUSIONS OF LAW, DECLARATORY JUDGMENT, PERMANENT INJUNCTION AND ANCILLARY RELIEF
This matter is before the Court on the request of the parties for final relief in this case based upon prior decisions of this Court in the case of Burlington N. R.R. v. Bair, Civil No. 83-100-A BN case. See, 584 F.Supp. 1229 (S.D.Iowa 1984), aff'd. and , 766 F.2d 1222 (8 Cir.1985). The issue in this case is the personal property tax issue involved in the BN case. Plaintiff Illinois Central Gulf Railroad Company ICG seeks declaratory and injunctive relief. The parties have submitted their Stipulation of Relevant Facts which is attached hereto and marked Appendix 1.
Based upon the pleadings and the Stipulation, the Court makes the following findings of fact:
Findings of Fact
1. The Court accepts and finds as facts herein the facts contained in Appendix 1. Appendix 1 is incorporated herein by reference.
2. The Court finds that, based upon the findings and conclusions in the BN case, the correct 1983 assessment and actual value for the rail transportation property of the ICG which is subject to valuation and assessment by the Director should be and is $8,886,160.
3. The Court finds that, based upon the findings and conclusions in the BN case, the correct 1984 assessment and actual value for the rail transportation property of the ICG which is subject to valuation and assessment by the Director should be and is $13,255,699.
Based upon the foregoing, the Court makes the following conclusions of law:
Conclusions of Law
1. The Court has jurisdiction over the subject matter hereof pursuant to the provisions of 49 U.S.C. § 11503, 28 U.S.C. § 1337 and 28 U.S.C. § 1331.
2. The Court has jurisdiction over the parties hereto.
3. The ICG is a "rail carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of Chapter 105" of the Interstate Commerce Act, 49 U.S.C. §§ 10101, et seq.
4. The real and personal property of the ICG which is subject to valuation and assessment by the Director pursuant to the provisions of Iowa Code ch. 434 is "rail transportation property", as that phrase is defined in 49 U.S.C. § 11503; the Director performs an "assessment", as that word is defined in 49 U.S.C. § 11503, with respect to such property; and the State of Iowa is an "assessment jurisdiction", as that phrase is defined in 49 U.S.C. § 11503, with respect to such property.
5. For the reasons stated in the Ruling and Order on Personal Property Taxation Issue entered by this Court on April 20, 1984, in the BN case, 584 F.Supp. 1229, the Court concludes that, to the extent that the 1983 assessment of the rail transportation property of the ICG by the Director exceeds $8,886,160, the same unreasonably burdens and discriminates against interstate commerce in violation of 49 U.S.C. § 11503(b) and results in the imposition of a tax that discriminates against the ICG in violation of 49 U.S.C. § 11503(b)(4).
6. For the reasons stated in the Ruling and Order on Personal Property Taxation Issue entered by the Court on April 20, 1984, in the BN case 584 F.Supp. 1229, the Court concludes that, to the extent the 1984 assessment of the rail transportation property of the ICG by the Director exceeds $13,255,699, the same unreasonably burdens and discriminates against interstate commerce in violation of 49 U.S.C. § 11503(b) and results in the imposition of a tax that discriminates against the ICG in violation of 49 U.S.C. § 11503(b)(4).
Based upon the foregoing, the Court enters the following declaratory judgment herein:
Declaratory Judgment
IT IS ORDERED, ADJUDGED, DECREED AND DECLARED as follows:
1. To the extent that the 1983 assessment of the rail transportation property of the ICG by the Director exceeds $8,886,160, the same is null, void and of no force and effect. The 1983 revised assessment of the rail transportation property of the ICG is declared to be $8,886,160.
2. To the extent that the 1984 assessment of the rail transportation property of the ICG by the Director exceeds $13,255,699, the same is null, void and of no force and effect. The 1984 revised assessment of the rail transportation property of the ICG is declared to be $13,255,699.
Based on the foregoing, the Court enters the following permanent injunction herein:
Permanent Injunction
IT IS ORDERED, ADJUDGED AND DECREED as follows:
1. The Director is permanently enjoined from doing, or causing to be done, any act under the provisions of Iowa Code ch. 434 which would result in the valuation and/or assessment of the rail transportation property of the ICG for the year 1983 in excess of the amount of $8,886,160 or which would result in the valuation and/or assessment of the rail transportation property of the ICG for the year 1984 in excess of the amount of $13,255,699.
2. The Director shall forthwith transmit to the County Auditor of each county in which the rail transportation property of the ICG was located for the assessment year 1983 a revised statement showing the length of the main track within each such county, and the assessed value per mile of the same, as fixed by a ratable distribution per mile of an assessed value of the whole property of ICG.
3. The Director shall forthwith transmit to the County Auditor of each county in which the rail transportation property of the ICG was located for the assessment year 1984 a revised statement showing the length of the main track within each such county, and the assessed value per mile of the same, as fixed by a ratable distribution per mile of an assessed value of the whole property of ICG.
4. Upon receipt by the County Auditors of the revised statements required by paragraphs 2 and 3 hereof, they will forthwith present the same to their respective boards of supervisors in accordance with the provisions of Iowa Code § 434.22 and cause the same to be transmitted to their respective County Treasurers in accordance with the provisions of Iowa Code § 331.512(7).
5. Upon receipt by the County Treasurers of the revised statements required by paragraphs 2 and 3 hereof in accordance with the procedures described in paragraph 4 hereof, the County Treasurers shall forthwith cause to be prepared revised tax statements for the rail transportation property of the ICG located within their county for first half 1983 taxes, second half 1983 taxes and first half 1984 taxes. In no event shall the revised tax statements for 1983 taxes show amounts due in excess of 63.51% of the amounts originally billed, nor shall the revised tax statements for 1984 show amounts due in excess of 72.08% of the amounts originally billed. All revised tax statements shall reflect credits for amounts previously paid by the ICG. No revised tax statement shall contain any claim for interest or penalty. Revised tax statements for second half 1984 taxes shall be prepared and rendered in similar fashion.
6. The County Treasurers of each county in which rail transportation property of the ICG was located for the years 1983 and 1984 are permanently enjoined from doing, or causing to be done, any act which would result in the collection, or claim for collection, of any taxes on the rail transportation property of the ICG located in their respective counties in excess of 63.51% of the amounts originally billed for 1983 or 72.08% of the amounts originally billed for 1984. The County Treasurers are further permanently enjoined from doing, or causing to be done, any act which would result in the collection, or claim for collection, of any interest or penalty on any of the taxes specified herein except for the collection of interest on funds deposited in the Registry of the Court as hereinafter provided.
Based on the foregoing, the Court enters the following orders pertaining to ancillary relief herein.
IT IS ORDERED, ADJUDGED AND DECREED THAT:
1. The Clerk of this Court is directed to make the following disposition of monies deposited in the Registry of the Court:
a. Monies presently invested in certificates of deposit will not be reinvested and will be returned to the Registry at maturity.
b. Monies deposited in the Registry pursuant to the Consent Preliminary Injunction entered herein on September 20, 1984, shall be distributed as follows:
i. At maturity, the Clerk shall pay $27,005.50 in principal and $2,851.26 in accrued interest thereon to the ICG to be distributed to the County Treasurers.
ii. At maturity, the Clerk shall distribute $53,109.08 in principal and $5,607.27 in accrued interest thereon to the ICG. A check in the amount of $58,716.35 payable to the ICG shall be delivered to its counsel of record.
c. Monies deposited in the Registry pursuant to the Consent Preliminary Injunction entered herein on March 20, 1985, shall be distributed as follows:
i. At maturity, the Clerk shall pay $27,005.50 in principal and $1,519.92 in accrued interest thereon to the ICG to be distributed to the County Treasurers.
ii. At maturity, the Clerk shall distribute $53,109.08 in principal and $2,989.09 in accrued interest thereon to the ICG. A check in the amount of $56,098.17 payable to the ICG shall be delivered to its counsel of record.
d. Monies deposited in the Registry pursuant to the Consent Preliminary Injunction entered herein on September 27, 1985, shall be distributed as follows:
i. At maturity, the Clerk shall pay $15,111.07 in principal and $266.62 in accrued interest thereon to the ICG to be distributed to the County Treasurers.
ii. At maturity, the...
To continue reading
Request your trial
-
Goff v. Nix
... ... Fed.R.Civ.P. 52(a). We may not reverse the district ... ...