Morris Ice Company v. Adams

• Decision Date: 17 January 1898
• Citation: 22 So. 944,75 Miss. 410
• Court: Mississippi Supreme Court
• Parties: MORRIS ICE COMPANY v. WIRT ADAMS, STATE REVENUE AGENT

22 So. 944

75 Miss. 410

MORRIS ICE COMPANY v. WIRT ADAMS, STATE REVENUE AGENT

Supreme Court of Mississippi

January 17, 1898

December 1897

FROM the circuit court, first district, of Hinds county HON ROBERT POWELL, Judge.

This suit had its origin in the efforts of the state revenue agent to collect from the ice company taxes due to the city of Jackson for the years 1886, 1887, 1888, 1889 and 1890, and which he claimed said company had wrongfully escaped. Acting trader the statute [sec. 3, chap. 34, laws of 1894, p. 29] the revenue agent gave notice to the city tax assessor requiring him to make proper assessment of the ice company's property, by way of an additional assessment, and to notify said company and the municipal authorities of the city thereof. In pursuance of the notice, the city assessor made the assessment and gave the notices required. The question of the approval or disapproval of the assessment so made, came on to be heard before the municipal authorities of the city, the state revenue agent insisting upon its approval and the ice company urging its disapproval. Upon this hearing an agreed state of facts was entered into, from which it appeared: 1. That the ice company was a manufacturer of ice, and was taxable, if not exempt or released from city taxes, for the years above mentioned, on its capital stock of $ 10, 000, for each of said years. 2. That the ice company was a corporation of the state of Mississippi, domiciled in the city of Jackson. 3. That the city tax levy for each of said years was regular, and was 10 mills on the dollar for 1886 and 1887, 14 mills on the dollar for 1888, 15 1-2 mills on the dollar for 1889, and 13 1-2 mills on the dollar for 1890. 4. That the ice company had not previously been assessed or paid city taxes for said years. 5. That the municipal authorities of Jackson, on February 3, 1892, duly passed an ordinance in these words, viz.: "Whereas, under the construction of the laws of the state of Mississippi, that factories of all kinds were exempt from taxes, divers manufactories have been established within the corporate limits of the city, which would not have been done if such construction had not been placed upon the law; and, whereas, the city has invited such investments, desires to retain them within its borders, and has refrained from collecting any taxes therefrom, upon the belief that the same was exempt; and, whereas, good faith requires that the honest belief of both the manufactories and the corporate authorities should be carried out, therefore: Be it ordained by the board of mayor and aldermen of the city of Jackson, that all claims on the part of the city of Jackson for taxes due, or that might have been due if the same had been properly assessed prior to the fiscal year 1891, by the . . . Morris lee Company, . . . . and any other manufacturing company in said city, be, and the same is hereby, released and abated, and that said manufactories be, and they are hereby, required to pay the taxes for 1891, and all to grow due thereafter."

The assessment in dispute, aside, from the exemption and release, was in accordance with the agreed state of facts. The municipal authorities of the city disapproved the assessment, and the state revenue agent appealed to the circuit court. Upon the trial in the circuit court, the judgment was one approving the assessment, adding thereto the personal judgment referred to in the opinion. The ice company appealed to the supreme court.

Calhoon & Green, for appellant.

The power of taxation granted by the charter of 1840, was that the mayor and board, etc., "shall have power to levy a tax in each and every year, in a sum not exceeding fifty cents on every hundred dollars of value thereof, on all lots of ground, or lots and tenements, within said city; and they shall have full power and authority to levy taxes on all property and things not hereinafter specified in this act subject to. taxation in the city."

The constitution of 1832, in force when this charter was passed, did not contain the equality and uniformity taxation clause. So, under this charter, the municipality had "full power and authority to levy taxes on all property and things not hereinafter specified in this act, subject to taxation in the city." Capital stock of a corporation could be taxable under this clause. The word, "full, " "full jurisdiction, " implies that nothing is reserved. Bank v. Duncan, 52 Miss. 745. By this charter, then, unlimited power to levy taxes on all property and things is delegated to the board. Under this, the board would stand, as to the power and authority in matters of taxation on personal property in the city, in the same position as the legislature does in matters of general state taxation. This unlimited "power and authority" Would confer the right of selection of classes of personal property and things to be taxed.

"The legislature may select the subjects of taxation, and everything not designated as taxable is exempt for the time being, " and this under the equality and uniformity clause. Vicksburg Bank v. Worrell, 67 Miss. 57. Therefore, we conclude, if there was no ordinance taxing capital stock of corporations, and it is not pretended that there was, then this class of property and things, viz.: capital stock of corporations, was exempt because omitted. The power to tax, so far as concerns this case, is still that of the act of 1840. The repeal of this power, granted by the act of 1840, blotted out all rights except vested ones, and all proceedings pending or in fieri, to enforce any tax which might have been assessed under the act of 1840. Musgrove v. R. R. Co., 50 Miss. 677; Anding v. Levy, 57 Miss. 57; State v. Jenkins, 73 Miss. 525.

When the city assessor of the city of Jackson was notified to...