In re Fuller

• Decision Date: 05 March 1924
• Docket Number: No. 29.,29.
• Citation: 197 N.W. 552,226 Mich. 170
• Parties: Petition of FULLER, Auditor General.
• Court: Michigan Supreme Court

226 Mich. 170

197 N.W. 552

Petition of FULLER, Auditor General.

No. 29.

Supreme Court of Michigan.

March 5, 1924.

Appeal from Circuit Court, Kent County, in Chancery; Major L. Dunham, Judge.

In the matter of the petition of Oramel B. Fuller, Auditor General, for and in behalf of the State, for the sale of certain lands for taxes assessed thereon. From a decree as prayed, the Union Benevolent Association of Grand Rapids appeals. Decree affirmed as modified.

Argued before CLARK, C. J., and McDONALD, BIRD, SHARPE, MOORE, STEERE, FELLOWS, and WIEST, JJ. Philip H. Travis, of Grand Rapids (Travis, Merrick, Warner & Johnson, of Grand Rapids, of counsel), for appellant.

Cornelius Hoffius, of Grand Rapids (Emil B. Gansser, of Grand Rapids, of counsel), for appellee.

SHARPE, J.

In 1915 the village of East Grand Rapids caused a sanitary sewer system and sewage disposal plant to be constructed at a cost of $50,000. By appropriate action the council determined that 40 per cent. of the cost thereof should be borne by the property in a special assessment district and the balance by the village at large.

The Union Benevolent Association of Grand Rapids was organized under sections 10900-10902, 3 Comp. Laws 1915, as a benevolent and charitable association. In 1915 it began the erection of a hospital building on land owned by it in said village. This land was included in the special assessment district, and the tax levied therefor has been paid by it. Its property, valued in that year at $250,000, was placed on the general assessment roll, and its proportion of the 60 per cent. then levied in said village was assessed to and paid by it. In 1916 the valuation was increased to $600,000, and a tax again spread for such purpose. This was not paid. It was included in the Auditor General's petition for a decree for the sale of lands in the county for taxes delinquent for that year. The trial court granted a decree as prayed for over objection that it was not subject to such a tax, and the association appeals.

Section 7 of the General Tax Law (1 Comp. Laws 1915, § 4001) provides:

‘The following real property shall be exempt from taxation:

* * *

‘Fourth. Such real estate as shall be owned and occupied by library, benevolent, charitable, educational and scientific institutions incorporated under the laws of this state, with the buildings and other property thereon while occupied by them solely for the purposes for which they were incorporated: Provided, That such exemption shall not apply to fraternal or secret societies, but all charitable homes of such societies shall be exempt.’

It is conceded that the association is entitled to the benefit of this exemption, and that it applies to all ordinary taxes levied in the village. It is insisted by the petitioner that the taxes here levied are not general taxes within the meaning of the exemption provision. He invokes the well-established rule that statutes exempting property from taxation are in derogation of equal rights, and must be strictly construed. Detroit Young Men's Soc. v. Detroit, 3 Mich. 172;St. Joseph's Church v. Detroit, 189 Mich. 408, 155 N. W. 588;McConnell v. Township of Lake, 191 Mich. 544, 158 N. W. 1;Woodmere Cem. Ass'n v. Detroit, 192 Mich. 553, 159 N. W. 383;Tucker v. Ferguson, 22 Wall. (89 U. S.) 527, 22 L. Ed. 805;East Saginaw Mfg. Co. v. East Saginaw, 19 Mich. 259, 2 Am. Rep. 82. It is well settled that there can be no implied exemption as to this class of property. Big Rapids v. Supervisors, 99 Mich. 351, 58 N. W. 358. That the exemption applies only to general taxes admits of no doubt. Big Rapids v. Sup'rs, supra; Newberry v. City of Detroit, 164 Mich. 410, 129 N. W. 699,32 L. R. A. (N. S.) 303.

It seems clear to us that a tax levied for the benefit of the taxpayers of a municipality as a whole is a general tax. It is spread upon the property assessed upon the general tax roll. The provisions of the tax law relating to the making of assessments are indicative of the legislative intent. Section 4004 provides that--

‘An assessment of all the property in the state, liable to taxation, shall be made annually in the several townships, villages and cities thereof by the supervisors.’

Section 4018 requires the supervisor on or before the first Monday in June to-- ‘make and complete an assessment roll, upon which he shall set down the name of every person liable to be taxed in his township or assessment district, with a full description of all the real property therein liable to be taxed.’

Section 4023 authorizes the board of review to add to the roll the names of persons and the descriptions and value of property ‘liable to assessment’ omitted from the roll. Under these provisions, the hospital property should not have been placed upon the roll, because it is not ‘liable to taxation’ under the provision for its exemption. And, unless so listed by the assessing officer and its valuation fixed by the board of review, there was no basis on which to spread a tax...