State ex rel. Buchanan County Power Transmission Co. v. Baker

• Decision Date: 02 October 1928
• Docket Number: 28672
• Parties: The State ex rel. Buchanan County Power Transmission Company v. Sam A. Baker et al., Members of State Board of Equalization, and J. T. Waddill et al., Members of State Tax Commission
• Court: Missouri Supreme Court

9 S.W.2d 589

320 Mo. 1146

The State ex rel. Buchanan County Power Transmission Company v. Sam A. Baker et al., Members of State Board of Equalization, and J. T. Waddill et al., Members of State Tax Commission

No. 28672

Supreme Court of Missouri

October 2, 1928

Record quashed.

Charles H. Mayer, Roscoe P. Conkling and Floyd M Sprague for relator.

(1) Under the pleadings and the agreed facts, relator is not a public utility. State ex rel. Danciger v. Pub. Serv Comm., 275 Mo. 483. (2) The State Tax Commission has no jurisdiction or authority of original assessment except over property of public utilities. Subdivision 6, Sec. 12847, R S. 1919; Laclede Land Co. v. State Tax Comm., 295 Mo. 298.

North T. Gentry, Attorney-General, and Smith B Atwood, Assistant Attorney-General, for respondents.

(1) The Laws of Missouri, 1923, page 372, confers upon the State Tax Commission power and authority to tax electric transmission lines as such, and such power does not depend upon their character as "public utilities." Sec. 13056, R. S. 1919, as amended Laws 1923, p. 372. (a) Said section nowhere mentions "public utilities," and the doctrine of ejusdem generis does not apply; consequently, the power exists solely by virtue of its being named in the section. (b) Said section confers powers of original addition to Sec. 12847, R. S. 1919. (2) Said section provides that such property shall be subject to taxation to the same extent as private property, but provides a different method of levying said taxes, i. e., the method provided for taxation of railroad property. Railroad property is subject to original assessment by the State Tax Commission. Secs. 13002, 13005, 13007, R. S. 1919, as modified by Sec. 12847, R. S. 1919. (3) Therefore, "electric transmission lines" are subject to such original assessment. State ex rel. v. Baker, 293 S.W. 401. For distinction as to property used as a "collateral facility" to a main business, see State ex rel. v. Ry. Co., 162 Mo. 391; State ex rel. v. Baker, 293 S.W. 404.

Gantt, J. White, C. J., and Ragland, and Walker, JJ., concur; Blair, J., concurs in the result; Atwood, J., dubitante; Gentry, J., not sitting.

OPINION

GANTT

Relator fairly states the case as follows:

"This is an original certiorari proceeding in which relator Buchanan County Power Transmission Company, seeks to quash the orders, judgments, records and proceedings of the State Tax Commission and the State Board of Equalization pertaining to relator's assessment for taxation purposes for the year 1927, on the ground that they are 'unauthorized, unjust, illegal and void, and without authority and beyond the jurisdiction' of respondents.

"Relator's petition alleged that it was a Delaware corporation duly licensed to do business in the State of Missouri, and that it was engaged in the business of buying, transmitting and selling electric energy, but not in such manner as to engage in the public utility business; that it owned and operated an electric transmission line located upon its privately owned right-of-way extending from East Atchison, Buchanan County, Missouri, to South St. Joseph, Buchanan County, Missouri; that it purchased electric energy delivered to it at East Atchison, Buchanan County, Missouri, from the Kansas Public Service Company, and that it sold said electric energy so purchased to only one customer, the St. Joseph Railway, Light, Heat & Power Company, which electric energy it delivered to the lastnamed company near the southern limits of the city of St. Joseph, Missouri; that relator had no other customer, had never had any other customer, refused to take any other customer, and had never sold said electric energy to any other corporation, partnership or person; that it had not devoted its property to any public use in any manner whatever; that it had never asserted the power of eminent domain, and had never sought any franchise of any kind or character from any state or any subdivision thereof or from any municipality; that its property consisted of a high tension electric transmission line, including poles, wires, cross-arms, appurtenances and appliances thereto belonging, which was located upon its privately owned right-of-way; that it had no other property and that it had no property in the State of Missouri except in Buchanan County, Missouri; that the respondents, who were members of and composed the State Tax Commission and the State Board of Equalization, attempted to and did assess, value and equalize for taxation purposes the relator's property; that the respondents' action in that respect was illegal, null and void; that relator was not a public utility, and that the respondents had no jurisdiction or authority of original assessment save and except as to public utilities; that the Assessor of Buchanan County had made a valid and legal assessment of relator's property for taxation purposes; that relator was without other remedy, stating the reasons therefor.

"The writ of certiorari was issued by the court as prayed.

"Respondents filed a return to the writ of certiorari admitting certain formal averments of relator's petition and admitting that the respondents, who were members of and composed the State Tax Commission, proceeded to and did assess and value for taxation purposes relator's property, and that the respondents, who were members of and composed the State Board of Equalization, proceeded to adjust and equalize the valuation of relator's transmission line and approved and adopted the assessment thereof as fixed by the State Tax Commission, and that the then secretary of the State Tax Commission certified to Buchanan County, Missouri, the assessment of said property as so assessed and valued. In their said return, the respondents also denied the allegations of relator's petition to the effect that there was no authority under the laws of Missouri for the procedure adopted and followed by respondents in making said assessment and equalizing the same, and denied that in making said assessment and equalizing the same the respondents disregarded the laws of Missouri, but averred that the respondents, who were members of and composed the State Tax Commission, acted within their proper jurisdiction and authority in assessing relator's property for taxation purposes in the manner therein set forth, and that the respondents, who were members of and composed the State Board of Equalization, acted within their proper jurisdiction and authority in adjusting and equalizing the value thereof in the manner therein set forth.

"Respondents further averred that the records so entered by the respondent boards, respectively, were lawful, binding and valid as to the relator. Attached to the return were full and complete copies of the findings and orders, entries and minutes of said State Tax Commission and said State Board of Equalization relevant to the assessment and valuation for taxation purposes of relator's property.

"The facts are set forth in an agreed stipulation of facts filed in this court. The stipulation is brief, and, for the convenience of the court, we herein set it out in full, except for the caption and signatures, which are omitted.

"'It is hereby stipulated and agreed by and between the parties hereto that the following may be taken and considered by the court as undisputed facts in this cause, as follows:

"'(1) That relator is a corporation organized and existing under the laws of the State of Delaware with its principal office in the city of Dover, State of Delaware; that it is duly licensed to do business in the State of Missouri, and has complied with all the laws of the State of Missouri with reference to the right of foreign corporations to engage in business in the State of Missouri, and maintains its principal office, for the transaction of its business in Missouri, at 802 Corby Building, St. Joseph, Missouri; that Exhibit A, attached to relator's petition, is a true and correct copy of the certificate and license issued to relator by the Secretary of State of the State of Missouri.

"'(2) That relator is engaged in the business of buying, transmitting and selling electric energy and that it owns and operates an electric transmission line located upon its privately owned right of way extending from East Atchison, Buchanan County, Missouri, to South St. Joseph, Buchanan County, Missouri.

"'(3) That it purchases electric energy, delivered to it at East Atchison, Buchanan County, Missouri, from the Kansas Public Service Company, and that it sells said electric energy so purchased to only one customer, the St. Joseph Railway, Light, Heat & Power Company; and that it delivers said electric energy so purchased and transmitted to the last-named company near to and outside of the southern city limits of St. Joseph, Missouri.

"'(4) That relator has no other customer and does not hold itself out as seeking or desiring other customers for the sale of its electric energy, and does not otherwise sell or dispose of the same to any other corporation, partnership or person; that on the contrary relator has refused to furnish the public or any other user of electricity except the one customer above named, and has disclaimed any right or authority to serve the public generally.

"'(5) That relator has never asserted the power or right of eminent domain and has never sought or obtained any franchise in the nature of a contract to serve the public from any state or municipality.

"'(6) That the relator's property consists of a certain high tension electric transmission line, poles, wires, cross-arms, transformers, appurtenances and appliances thereto belonging, and that it owns no other property; that all of its said property in Missouri is located in Buchanan County, Missouri.

"'(7)...