Pidgeon-Thomas Iron Co. v. Shelby County
| Decision Date | 09 December 1965 |
| Docket Number | PIDGEON-THOMAS |
| Citation | 21 McCanless 288,397 S.W.2d 375,217 Tenn. 288 |
| Parties | , 217 Tenn. 288 IRON COMPANY et al., Appellants, v. SHELBY COUNTY, Tennessee, et al., Appellees. |
| Court | Tennessee Supreme Court |
John M. Heiskell, Memphis, Montedonico, Gilliland, Heiskell, Davis, Canale & Glankler, Memphis, and Donald W. Pemberton, Memphis, Boone, Boone, Langschmidt & Pemberton, Memphis, of counsel, for appellants.
Eugene Greener, James M. Manire, Jack Petree, James W. Watson, William H. Williams, Memphis, Milton P. Rice, Asst. Atty. Gen., Nashville, Buchignani & Greener, Memphis, Chandler, Manire, Chandler & Johnson, Memphis, Evans, Petree, Cobb & Edwards, Memphis, Laughlin, Watson, Garthright & Halle, Memphis, of counsel, for appellees.
The original bill was filed herein by a number of corporations doing business in Shelby County against the defendants named therein, praying for a declaratory judgment under the authority of T.C.A. § 23-1101 et seq., with reference to the validity of a resolution passed by the Shelby County Quarterly Court authorizing a referendum on the question of the imposition of a local sales tax, applicable to Shelby County only, to be collected and distributed in accordance with the provisions of Chapter 329, of the Public Acts of 1963, now T.C.A. § 67-3049 et seq.
The Resolution adopted by said Quarterly Court providing for a referendum on the question of the imposition of the said local sales tax called for a county-wide referendum to be held within sixty days from the date of the adoption of said Resolution
* * * to determine whether or not the citizens of Shelby County wish to impose upon themselves a local sales tax on the same privileges covered by 'THE RETAILERS' SALES TAX ACT,' being Chapter 30, Title 67, Tennessee Code Annotated, as amended, and at the rate of one-third (1/3) of the rate levied in the Retailers' Sales Tax Act but in no event to exceed one percent (1%) of the taxable amount.
It was further provided in said Resolution that
* * * in the event the electorate decides to impose the local sales tax upon themselves, then and in that event the tax shall be collected by the Department of Revenue, State of Tennessee, concurrent with the collection of the state tax in the same manner that the state tax is collected; provided that said department has determined that such collection of said tax is feasible and has promulgated rules and regulations governing such collection.
It is then provided that said Department of Revenue shall remit the amount of tax so collected, less a reasonable amount of percentage as determined by the Department to cover the expense of administration and collection.
The Resolution also provides for a levy
* * * subject to the approval of the people of the referendum on Local Option Sales Tax on the same privileges subject to taxation under the Tennessee Retailers' Sales Tax Act.
Acting under the direction of said Resolution, an election was conducted by the proper officials of Shelby County to determine whether the tax should be imposed, the wording on the ballot being as follows:
Resolution of Shelby County Court levying tax on same privileges subject to 'THE RETAILERS' SALES TAX ACT' under Chapter 30, Title 67, Tennessee Code Annotated, as amended, which are exercised within Shelby County to be levied and collected in the same manner and on all such privileges, but not to exceed one-third (1/3) of the rates levied therein; provided that the tax so levied shall not exceed Five Dollars ($5.00) on the sale or use of any single article of personal property, and exempting from such tax consumption or distribution of electric power or energy, natural or artificial gas, or coal and fuel oil.
A space was provided on each voting machine for the elector to vote 'FOR' or 'AGAINST'. The referendum carried by a substantial vote and the present bill was brought for the purposes aforesaid; that is, to secure a declaration:
(1) That the Resolution of the Quarterly County Court of Shelby County, Tennessee, is invalid on the ground that said Resolution does not in unequivocal language impose a tax; (2) That no proper election was held as required by T.C.A. § 67-3053 for the reason that the Resolution was not copied in toto upon the ballot, and that the summary as copied on the ballot did not fairly state the provisions of the Resolution; and (3) In the event the Court should find contrary to the contentions of the complainants, then the certain regulations promulgated by the Commissioner of the Department of Revenue, one of the defendants, be declared to be broader than the enabling statute, and that the Commissioner be directed to conform the regulations to the enabling statute.
The defendants filed demurrers raising principally the following questions:
(1) The complainants do not have the necessary legal standing to entitle them to the declaration sought.
(2) The subject matter (the assessment and collection of a tax) is not a proper one for declaratory relief.
(3) The complainants are not entitled to have a declaration against the Commissioner of the Department of Revenue, either as to the validity of the regulations as written, or as to the proper regulations which might be issued under the enabling statute.
It has been repeatedly held that by demurring the defendant confesses the truth of all properly poeaded facts as set forth in the complaint and relevant inferences of fact deductible from such alleged facts. Southall v. Billings, 213 Tenn. 280, 375 S.W.2d 844 (1963); Zager v. Cobb, 192 Tenn. 79, 237 S.W.2d 560 (1951); Williams v. McElhaney, 203 Tenn. 602, 315 S.W.2d 106 (1958).
In view of our disposition of this case, we find it unnecessary to specifically pass upon the standing of the complainants to maintain this cause. The determinative issues are: (1) Whether the County Resolution is valid; (2) Whether the ballot, as submitted to the voters, was a valid ballot; (3) Are the regulations as promulgated by the Commissioner of the Department of Revenue pursuant to the adoption of said Resolution by the voters valid; and (4) If the local sales tax is valid, has the court the power to make a declaration as to the meaning of the term 'single article of personal property?'
On the questions presented, material assistance has been presented to us through briefs filed by counsel of record. From our review of them, and from our independent research, we find that the Resolution of the Quarterly County Court is a carefully drawn document...
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Jordan v. Knox County
..."[w]hen citizens vote in a referendum, they are presumed to know the issue on which they are voting." Pidgeon-Thomas Iron Co. v. Shelby County, 217 Tenn. 288, 397 S.W.2d 375, 378 (1965). Generally, referendum results are entitled to a presumption of The people once having voted the courts g......
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Wallace v. Metro. Gov't of Nashville & Davidson Cnty.
...knowledge of the consequence of his vote." Rodgers v. White, 528 S.W.2d 810, 813 (Tenn. 1975) ; see Pidgeon-Thomas Iron Co. v. Shelby Cnty., 217 Tenn. 288, 397 S.W.2d 375, 378 (1965). The Commission, in its motion to dismiss in the trial court, asserted that "[t]his summary was approved by ......
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Pidgeon-Thomas Iron Co. v. Garner, PIDGEON-THOMAS
...The Supreme Court in that cause held the local tax was legally enacted in Shelby County, see: Pidgeon-Thomas Iron Co., et al v. Shelby County, et al (1965) 217 Tenn. 288, 397 S.W.2d 375. The present lawsuit was apparently held in abeyance pending the decision in the other lawsuit. Thereafte......
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...or contrary to statute, a court should not substitute its judgment for the Commissioner's. Pidgeon-Thomas Iron Co. v. Shelby County, 217 Tenn. (21 McCanless) 288, 297, 397 S.W.2d 375, 378-79 (1965). However, it is fundamental that the Commissioner cannot enlarge the scope of a taxing statut......