State v. Austin & N. W. R. Co.

• Decision Date: 23 May 1901
• Citation: 62 S.W. 1050
• Parties: STATE v. AUSTIN & N. W. R. CO.
• Court: Texas Supreme Court

Page 1050

62 S.W. 1050

STATE v. AUSTIN & N. W. R. CO.

Supreme Court of Texas.

May 23, 1901.

Application for writ of error to court of civil appeals of Third supreme judicial district.

Action by the state of Texas against the Austin & Northwestern Railroad Company to recover money alleged to be due as taxes. A judgment in favor of defendant was affirmed by the court of civil appeals (60 S. W. 886), and plaintiff applies for a writ of error. Refused.

George Calhoun, T. W. Gregory, Fiset & Miller, S. B. Dabney, Lackey & Lewright, and C. K. Bell, Atty. Gen., for the State.

GAINES, C. J.

We are of the opinion that the application for the writ of error in this case should be refused. The trial court held that the franchise of the railroad company, as separate from its tangible property, was not assessable under our statutes; and the court of civil appeals, without passing upon that question, affirmed the judgment upon the ground that the franchise was not properly assessed as a whole in the county of Travis. One of the judges dissented from that conclusion. We do not find it necessary to pass upon the latter question. We are of opinion that it was not the intention of the legislature to authorize a direct tax upon the franchises of a railroad company, as a separate entity from its tangible property. In reference to the taxation of the property of railroad companies, the Revised Statutes of 1895 contain these provisions:

"Art. 5073. All railroad, telegraph, plank-road and turnpike companies shall list all of their real and personal property, giving the number of miles of road-bed and line in the county where such road-bed and line is situated, at the full and true value, except when such company may own personal property or real estate in an unorganized county or district, then they shall list such property to the comptroller."

"Art. 5082. It shall be the duty of every railroad corporation in this state to deliver a sworn statement, on or before the first day of June of each year, to the assessor of each county and incorporated city or town, into or through which any part of their road may run or in which they own or are in possession of real estate, a classified list of all real estate owned by or in possession of said company in said county, town or city, specifying: (1) The whole number of acres of land, lot or lots, exclusive of their right of way and depot grounds owned, possessed or appropriated for their use, with a valuation affixed to the same. (2) The whole length of the railroad and the value thereof per mile, which valuation shall include right of way, road-bed, superstructure, depots and grounds upon which said depots are situate, and all shops and fixtures of every kind used in operating said road. (3) All personal property of whatsoever kind or character, except the rolling stock belonging to the company or in their possession in each respective county, listing and describing the said personal property in the same manner as is now required of citizens of this state."

Article 5062 provides that "real property, for the purpose of taxation, shall be construed to include the land itself, whether laid out in town lots or otherwise, and all the buildings, structures and improvements, or other fixtures of whatsoever kind thereon, and all the rights and privileges belonging or in any wise appertaining thereto, and all mines, minerals, quarries and fossils in and under the same." It seems to us the plain purpose of the article last quoted to require that in assessing real estate for taxation, whether held by a natural person or a corporation, there shall not only be included in the valuation the value of the land itself merely as land, together with the improvements thereon, but also all franchises and privileges appurtenant thereto, and all the advantages for a profitable prosecution of the business to which it is appropriated. As a rule, the value of improved real estate is proportionate to the net income which it will yield. The value...