Paxson v. Cresson Consol. Gold Min. & Mill. Co.

• Decision Date: 02 March 1914
• Citation: 56 Colo. 206,139 P. 531
• Parties: PAXSON, County Treasurer, et al. v. CRESSON CONSOL. GOLD MIN. & MILL. CO.
• Court: Colorado Supreme Court

139 P. 531

56 Colo. 206

PAXSON, County Treasurer, et al. v. CRESSON CONSOL. GOLD MIN. & MILL. CO.

Supreme Court of Colorado, En Banc.

March 2, 1914

Error to District Court, Teller County; J. W. Sheafor, Judge.

Action by the Cresson Consolidated Gold Mining & Milling Company, a corporation, in behalf of itself and all other corporations and persons similarly situated, against S.C. Paxson, as County Treasurer of the County of Teller, and the Board of County Commissioners. There was a judgment for plaintiff, and defendants bring error. Affirmed.

The Cresson Consolidated Gold Mining & Milling Company, a corporation, on behalf of itself and all other persons similarly situated, brought an action against the county treasurer and the board of county commissioners of the county of Teller, the purpose of which was to enjoin the sale of certain mines and mining claims of the parties plaintiff for delinquent taxes levied in 1910, and from attempting in any way or manner to collect them. The complaint attacked the validity of the taxes involved upon two grounds: (1) That the statutes under which such taxes were levied were unconstitutional; (2) that such taxes were not levied upon assessments made in conformity with the statutes. Other mining companies similarly situated joined as plaintiffs. The facts alleged in support of the second ground were to the effect that the assessed valuation of the mining properties involved was fixed at one-fourth of the gross value of the ores extracted without any deduction whatever. The issues made by the pleadings as to both questions of law and fact were whether the assessments had been made in conformity with the law. At the trial it was stipulated by the parties that during the year 1909 all of the ore mined, produced, and shipped by the plaintiffs was sold to ore buyers at the mines of the respective plaintiffs, and that such buyers paid all transportation charges upon the ore, and, after treatment thereof, deducted from its gross value the transportation and treatment charges, and remitted to the respective companies the balance left after making such reductions and that the only sums paid and received by the plaintiffs respectively for such ores were the amounts received from ore buyers after such deductions were made. According to the testimony, the mining properties of the respective parties were valued at one-fourth of the gross value of the ore extracted during the year 1909. Judgment was in favor of the plaintiffs and a decree rendered enjoining the defendants from collecting or attempting to collect the taxes involved. This judgment was based upon the conclusion of law that the assessor in valuing the properties for the purpose of taxation should have fixed the valuation at one-fourth of the sums received for the ores extracted instead of one-fourth of the gross value of such ores. The defendants have brought the case here for review on error, and by stipulation of the parties it is agreed the only question necessary for determination is one of law and relates solely to the construction and interpretation of the meaning of the term 'gross proceeds,' as employed in section 81c of the revenue act of 1902 (section 5620 of the Revised Statutes of 1908). The statutes relating to the assessment of producing mines are embraced in the following sections of the Revised Statutes of 1908:

'Sec 5619. Every person, or persons, corporation or association owning or operating any mines or mining claims which shall be a producing mine, as herein defined, shall, between the 1st and 15th days of January in each year, make out and deliver to the assessor of the county wherein such property is situate, a statement showing: First. The name of the mine or mining claim. Second. The name, or names, of the owner, or owners, thereof. Third. The number of acres contained in such mine or mining claims. Fourth. The number of tons of ore extracted, during the preceding year. Fifth. The gross value of any such ore extracted, in dollars and cents. Sixth. Actual cost of extracting same from mine, which shall not include the salaries of any officers or agents not actively and consecutively engaged in or about the mine. Seventh. Actual cost of transportation to place of reduction or sale. Eighth. Actual cost of treatment, reduction or sale. Ninth. The net proceeds, in dollars and cents, after deducting the above expenses. Which statement shall be signed and sworn to by such person or the superintendent or managing agent of such corporation or association.

'Sec 5620. The assessor, when he receives such statement, shall determine the gross proceeds of any such producing mine or mining claim for said preceding year, and shall, at the same time, determine the net proceeds as herein defined for said preceding year, and shall, for the purpose of assessment for taxation, value such producing mine, or mining claim at a sum equal to one-fourth of the said gross proceeds for said preceding year for any such mine or mining claim; provided however, that if the net proceeds as herein defined of any such producing mine or mining...