State v. Doster-Northington Drug Co.

• Court: Alabama Supreme Court
• Writing for the Court: THOMAS, J.
• Citation: State v. Doster-Northington Drug Co., 196 Ala. 447, 71 So. 427 (Ala. 1916)
• Decision Date: 10 February 1916
• Docket Number: 6 Div. 255
• Parties: STATE v. DOSTER-NORTHINGTON DRUG CO.

71 So. 427

196 Ala. 447

STATE v. DOSTER-NORTHINGTON DRUG CO.

6 Div. 255

Supreme Court of Alabama

February 10, 1916

Rehearing Denied March 30, 1916

Appeal from Circuit Court, Jefferson County; C.B. Smith, Judge.

Action by the State of Alabama against the Doster-Northington Drug Company. From an order sustaining a demurrer to the complaint, plaintiff appeals. Affirmed.

W.L Martin, Atty. Gen., and J.P. Mudd, Asst. Atty. Gen., for the State.

E.J Smyer and Charles E. Rice, both of Birmingham, for appellee.

THOMAS J.

The appellee, a corporation conducting its business in Jefferson county, Ala., was assessed by the county tax commissioner of said county on its escape solvent credits and credits of value, for the tax years running from October 1, 1908, to September 30, 1912, inclusive, to the amount of $10,000, and for the year beginning October 1, 1913, to the amount of $20,000.

This aggregate assessed value, for these years, of $70,000, was fixed on August 5, 1914, in pursuance of the provisions of section 2260 of the Code of 1907, by the county tax commissioners, and was agreed to by the taxpayer, appellee and said assessment was thereafter filed by the county tax commissioner with the tax collector of Jefferson county for collection.

On November 3, 1914, the state tax commission disregarded this assessment made and returned to the tax collector, and made a revaluation and reassessment of the same "solvent credits and credits of value" of appellee, for each of said years, fixing the excape value for each year at $25,000. In pursuance of such reassessment the state tax commission issued notice to said appellee company to appear before said commission on December 7, 1914, to show cause why the assessment should not be enforced, as on the valuation so fixed by that body.

By its attorney the Doster-Northington Drug Company, on December 7, 1914, made a special appearance before the state tax commission, and moved for the dismissal of the cause on the ground that the tax year in which the assessment was made by the county tax commissioner had expired on the 30th day of September, 1914, that the assessment became final on October 1, 1914, and that the state tax commission had no jurisdiction, power, or authority, after the expiration of the tax year (on November 3, 1914) to set aside and hold for naught the assessment made by the county tax commissioner. On December 28, 1914, the state tax commission overruled appellee's motion, and entered an assessment against it of $15,000 a year for each of said years, on its solvent credits and credits of value, making an aggregate valuation for said years of $90,000.

Appellee thereupon filed bond and appealed to the circuit court of Jefferson county, where the state filed a complaint containing two counts, setting up the facts in substance as we have stated them. In the second count of the complaint, in addition to the stated facts, there were allegations on the part of the state, by which it sought to raise appellee's assessed value over the amount so assessed by the state tax commission, to the extent of $5,000, or to the total sum of $95,000 for the years in question, whereas the total assessed valuation by the state tax commission, for such period, was $90,000.

Defendant demurred to each count of the complaint, and assigned as grounds, in substance, that the assessment made by the county tax commissioner became final on the 1st day of October, 1914, and that thereafter, and on November 3, 1914, the state tax commission had no jurisdiction or power to set aside the assessment made by the county tax commissioner, and reassess or revalue the property. The court sustained the demurrer. The state excepted, and takes this appeal.

This court has held that the tax year commenced on October 1st and ended with September 30th. Frost v. State, 153 Ala. 654, 45 So. 203; Hooper v. State, 141 Ala. 111, 37 So. 662. There are many statutes that fix this demarcation of the tax year. Taxes are declared to be due and payable on the 1st day of October of each year (Code, § 2091; Acts 1915, p. 392, § 8, page 399, § 18); and all property brought into the state after the 1st day of October, and before the assessor has completed his assessment, is subject to taxation, the same as if it had been held or owned in the state on the 1st day of October (Code, § 2092); the lien of state and county, for taxes, is fixed from and after the 1st day of October (Code, § 2093); and the tax assessments must commence on the 1st day of October in every year (Code, § 2102). When the Constitution required the payment of poll tax for the year 1901, before February 1st, it referred to the tax year as fixed by the statute of 1900-01--this poll tax having become fixed on October 1, 1900, and due on October 1st, succeeding. Const. § 178.

If the state through its duly constituted officers has exercised the final power of assessment and valuation of property, the determination is in its nature judicial (State Tax. Comm. v. Bailey et al., 179 Ala. 620, 627, 60 So. 913; Orr v. State, 3 Idaho [Hasb.] 190, 28 P. 416); and unless impeached for fraud or lack of jurisdiction, or reviewed by appellate authority, it is final (Anniston City Land. Co. v. State, 185 Ala. 482, 487, 64 So. 110; 37 Cyc. 1071).

The authority to make the assessment for escaped taxes was expressly conferred on the county tax commissioner by section 2260 of the Code of 1907; and it was his duty to assess, for "any preceding year not more than five years before that time," and to forthwith deliver the assessment to the clerk of the court of county commissioners, or other court of like jurisdiction, for hearing the taxpayer, unless the taxpayer, upon being notified by the tax commissioner that he had made such...