In re Opinions of the Justices

• Decision Date: 17 June 1937
• Docket Number: 43
• Citation: 175 So. 690,234 Ala. 358
• Parties: In re OPINIONS OF THE JUSTICES.
• Court: Alabama Supreme Court

175 So. 690

234 Ala. 358

In re OPINIONS OF THE JUSTICES.

No. 43

Supreme Court of Alabama

June 17, 1937

The statute exempting homesteads from state ad valorem taxes construed as applying to taxes for the year 1936-37, does not violate the constitutional provision that all taxes levied on property shall be assessed in proportion to its value. Gen.Acts 1936-37, Sp.Sess., p. 113, § 2; p. 142; Gen.Acts 1935, p. 274, § 29; p. 275, § 31, as amended by Gen.Acts 1936, p. 4, § 1; p. 280, § 45; p. 286, § 58; pp. 289, 292, §§ 67, 72; p. 292, § 73; p. 566, § 374; p. 574, § 411; Const.1901, §§ 100, 211.

Response to questions propounded by Governor.

Questions propounded by the Governor to the Justices of the Supreme Court, under Code, 1923, §§ 10290, 10291.

Questions answered.

January 15, 1937.

To the Honorable Chief Justice and Associate justices of the Supreme Court of Alabama.

Gentlemen:

As Governor of Alabama, I hereby respectfully request, in writing, the opinion of the Justices of the Supreme Court on the following important constitutional question, to-wit:

Does section 100 of the Constitution of Alabama prevent the exemption of homesteads in Alabama from state ad valorem taxes due October 1, 1937, and delinquent January 1, 1938, as provided by an act of the Legislature approved February 20 1937, entitled "An Act to define homesteads as herein used and to exempt such homesteads from such State ad valorem taxation"?

Copy of said act is hereto attached.

In connection with this request, your attention is respectfully called to an act approved March 12, 1936, found in General and Local Acts of Alabama, Extra Session 1936, page 4 entitled "An Act to amend Section 31 of an Act entitled 'An Act to provide for the general revenue of the State of Alabama,' " providing for the separate assessment of homesteads; and also an act approved February 23, 1937, entitled, "An Act to set up in the State Treasury a Property Tax Relief Fund and to provide for its distribution," a copy of which is hereto attached.

This request is made under the authority of sections 10290-10291 of the Code of Alabama, as amended.

Respectfully submitted,

Bibb Graves, Governor.

The following are the acts referred to in the foregoing communication from the Governor:

AN ACT

To define homesteads as herein used and to exempt such homesteads from such State ad valorem taxation.

Be it Enacted by the Legislature of Alabama:

Section 1. The word "homestead" as herein used is the "homestead" as now defined by the Constitution and Laws of the State of Alabama.

Section 2. Homesteads, as herein defined, are hereby exempted from all State ad valorem taxes beginning October 1, 1937.

Section 3. In no case shall the exemption herein made apply to more than one person, head of the family, nor shall said exemption exceed Two Thousand Dollars ($2,000.00) in assessed value, nor one hundred sixty (160) acres in area.

Approved February 20, 1937.

AN ACT

To set up in the State Treasury a Property Tax Relief Fund and to provide for its distribution.

Be it Enacted by the Legislature of Alabama:

Section 1. That there is hereby set up in the State Treasury a Property Tax Relief Fund to be used to reimburse the State General Fund, the State Soldiers' Relief Fund and the Public School Fund by such amounts as are lost to such funds by reason of exemption of homesteads, in whole or in part from the payment of the State levy of twenty-five cents (25c) on each One Hundred Dollars ($100.00) of taxable property for the State General Fund; ten cents (10c) on each One Hundred Dollars ($100.00) of taxable property for the State Soldiers' Relief Fund and thirty cents (30c) on each One Hundred Dollars ($100.00) of taxable property for the Public School Fund.

Section 2. That the surplus over and above Seven Hundred and Fifty Thousand Dollars ($750,000.00) in the State General Fund, after all State appropriations now or hereafter payable from the State General Fund are paid in full on September 30th of each fiscal year beginning September 30, 1937, shall be transferred from the State General Fund into and become a part of the Property Tax Relief Fund.

Section 3. Any surplus in the Special Educational Trust Fund on September 30th of each fiscal year, beginning September 30, 1937, remaining after all appropriations now or hereafter payable from the Special Educational Trust Fund have been paid in full, shall be transferred into and become a part of the Property Tax Relief Fund.

Section 4. The State Comptroller, with the approval of the Governor, is hereby directed to draw warrants payable out of the Property Tax Relief Fund payable to the State General Fund, the State Soldiers' Relief Fund and the Public School Fund in amounts sufficient to reimburse each of said Funds for revenues lost by the exemption of homesteads, in whole or in part, of State ad valorem taxation.

Section 5. The State Comptroller shall ascertain the commissions due the Tax Assessors and Tax Collectors of the several counties lost by the exemption of homesteads as otherwise provided, and shall, with the approval of the Governor, draw his warrant payable out of the Property Tax Relief Fund and payable to each Tax Assessor and Tax Collector in each county in the State of Alabama the amount of his commission so ascertained. Provided, however, that in counties in which the Tax Assessors and Tax Collectors are on a salary basis, the State Comptroller shall ascertain the commissions due the Tax Assessors and Tax Collectors of such counties and lost by the exemption of homesteads as otherwise provided and shall, with the approval of the Governor, draw his warrant payable out of the Property Tax Relief Fund and payable to such county the amount of the commission so ascertained as earned by the Tax Assessor and Tax Collector of such county and due such county for its general fund.

Section 6. Should any surplus remain in the Property Tax Relief Fund after the charges hereinabove set out have been paid off or discharged in accordance with the provisions of this Act, then the Governor is directed, by proclamation, to reduce pro rata the State levy on all State ad valorem tax assessments, and the Tax Collectors and Tax Assessors are authorized and required to enter such reduction pro rata in the assessment and collection of all State ad valorem taxes.

Section 7. All laws and parts of laws in conflict with the provisions of this Act be and the same are hereby expressly repealed.

Approved February 23, 1937.

Hon. Bibb Graves,

Governor of Alabama,

Montgomery, Alabama.

Dear Sir:

Replying to your inquiry of June 15, 1937, we respectfully submit the following:

The act of February 20, 1937, was by its terms and contents, and by the companion act, approved February 23, 1937, effective from the date of its approval. The act in question contained the provision, "Homesteads, as herein defined, are hereby exempted from all State ad valorem taxes beginning October 1, 1937." In common parlance, the terms thus employed mean that the exemption declared was to apply to the taxes of the current tax year, 1936-37, and the taxes to become payable on and after October 1, 1937. Such is the legislative intent.

The question being dealt with, and the state revenue system, and its administration affected by the act, are to be taken in pari materia. When so considered, the immediate operation and effect of the act are shown.

The companion act of February 23, 1937, (Mooneyham, S.16--No. 127), provided for the depletion of the several funds by reason of the immediate effect of the Homestead Exemption Act. It was declared that there was hereby set up in the State Treasury a "Property Tax Relief Fund" to reimburse (1) the "State General Fund," (2) the "State Soldiers' Relief Fund" and (3) the "Public School Fund" by such "amounts as are lost to such funds by reason of the exemption of homesteads, in whole or in part from the payment of the state levy"; that the sums provided "are paid in full on September 30 of each year, beginning September 30, 1937." It is further provided in section 6 of this act, as follows: "Section 6. Should any surplus remain in the Property Tax Relief Fund after the charges hereinabove set out have been paid off or discharged in accordance with the provisions of this Act, then the Governor is directed, by proclamation, to reduce pro rata the State levy on all State ad valorem tax assessments, and the Tax Collectors and Tax Assessors are authorized and required to enter such reduction pro rata in the assessment and collection of all State ad valorem taxes."

Thus the exemption of the homestead is declared, and the available funds appropriated to meet the deficit in the several "earmarked" funds and the fees of officers. The act provides that "the Tax Collectors and Tax Assessors are authorized and required to enter such reduction pro rata in the assessment and collection of all State ad valorem taxes." Section 6, supra.

It is further provided that $750,000 shall be transferred from the State General Fund into and become a part of the Property Tax Relief Fund, and section 4 states that, "The State Comptroller, with the approval of the Governor, is hereby directed to draw warrants payable out of the Property Tax Relief Fund payable to the State General Fund, the State Soldiers' Relief Fund and the Public School Fund in amounts sufficient to reimburse each of said Funds for revenues lost by the exemption of homesteads, in whole or in part, of State ad valorem taxation."

Does the construction of the immediate effect of this act, when applied to ad valorem taxes for the year 1936-37, as an exemption of the homestead, collide with our decisions? Pullman Car & Mfg. Corporation v....