State ex rel. Nelson v. Iverson

• Decision Date: 20 February 1914
• Docket Number: 18,585 - (312)
• Citation: 145 N.W. 607,125 Minn. 67
• Parties: STATE ex rel. N. A. NELSON v. SAMUEL G. IVERSON
• Court: Minnesota Supreme Court

145 N.W. 607

125 Minn. 67

STATE ex rel. N. A. NELSON v. SAMUEL G. IVERSON

Nos. 18,585 - (312)

Supreme Court of Minnesota

February 20, 1914

Upon the relation of N. A. Nelson, the auditor of Washington county, the district court for that county granted its alternative writ of mandamus directed to Samuel G. Iverson as state auditor of the state of Minnesota, commanding him to draw his warrant upon the state treasurer for the balance of the amount of the gross-earnings tax of the Minneapolis, St Paul & Suburban Railroad Co. due to the county of Washington and to each of the towns and taxing districts of Grant Stillwater and Oakdale, and the city of Stillwater, for the years 1909, 1910, 1911 and 1912, or show cause why he had not done so. The respondent moved to quash the writ on the ground that the facts stated in it did not constitute a cause of action and were insufficient to justify the allowance of any writ of mandamus. The matter was heard before Stolberg, J who made findings denying respondent's motion and directed judgment that a peremptory writ issue. From the judgment entered pursuant to the order for judgment, respondent Iverson appealed. Affirmed.

SYLLABUS

Constitution -- payment of money from state treasury.

Section 9 of article 9 of the state Constitution prohibiting the payment of money out of the state treasury, except in pursuance of an appropriation by law, has no application to the issuance by the state auditor of a warrant on the state treasury for the distribution of the gross-earnings tax imposed upon and collected from suburban railroad companies, as authorized by chapter 454, Laws 1909.

Lyndon A. Smith, Attorney General, and William J. Stevenson, Assistant Attorney General, for appellant.

Reuben G. Thoreen, County Attorney, for respondent.

OPINION

BROWN, C.J.

The Minneapolis, St. Paul & Suburban Railroad Co. is subject to the payment of a gross-earnings tax, in lieu of other taxes, as provided for by chapter 454, p. 552, Laws 1909. The tax is paid to the state treasurer and by the statute referred to becomes the property of and is distributed to the municipalities and taxing districts through which the line of railroad extends. The report of gross earnings is made in conformity with the provisions of the general statutes upon the subject (section 1003, et seq., R.L. 1905), and the tax collected by the state treasurer. Chapter 454, supra, provides that the money when so reported and paid shall be by the state tax commission apportioned to the different municipalities as nearly as may be in accordance with the earnings of the company in each. The apportionment is required to be made in triplicate, one copy being filed with the state auditor, one with the state treasurer, and one with the county auditor of the county in which the railroad may be situated. Upon the filing of the apportionment the county auditor is required to report to the state auditor what the per cent of the state tax in each municipality or taxing district through which the road extends is to the entire taxes of such municipality or taxing district. Thereupon the state auditor is required to deduct from the total amount apportioned to each municipality or taxing district the amount due the state as shown by the statement, and that thereupon he "shall draw his warrant upon the state treasury for the balance of the amount of such taxes due to each county and to each of the cities, villages, towns and taxing districts of such county in favor of the treasurer of such county, and shall transmit the same to each county treasurer and shall advise the county auditor of each such county of the payment thereof."

The money is then distributed by the county auditor to the municipal subdivisions entitled to it and in accordance with the apportionment made by the tax commission. The railroad company duly reported its gross earnings for the years 1909, 1910, 1911 and 1912, in compliance with the statute, and paid the tax computed thereon to the state treasurer. The apportionment thereof was duly made by the tax commission, and the amount due to the municipalities of Washington county fixed and determined. The county auditor reported the per cent of the state tax assessed in such municipalities, and thereafter demanded of the state auditor a warrant on the state treasury for the amount of the earnings tax due that county, after...