The Atchison v. The City of Humboldt

• Decision Date: 11 May 1912
• Docket Number: 17,192
• Citation: 87 Kan. 1,123 P. 727
• Court: Kansas Supreme Court
• Parties: THE ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY, Appellant, v. THE CITY OF HUMBOLDT et al., Appellees

123 P. 727

87 Kan. 1

THE ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY, Appellant, v. THE CITY OF HUMBOLDT et al., Appellees

No. 17,192

Supreme Court of Kansas

May 11, 1912

Decided January, 1912.

Appeal from Allen district court.

Judgment reversed and cause remanded.

SYLLABUS

SYLLABUS BY THE COURT.

1. TAXATION -- Excessive Levy -- "General Revenue Purposes." Where the officers of a city of the second class have made a levy of ten mills on the dollar for general revenue purposes they can not levy an additional tax to pay indebtedness incurred for the same purpose and payable out of the same fund, although designated by another name and placed in a different class.

2. ILLEGAL TAXES -- Paid under Protest -- Recoverable. Where an illegal tax is levied on the property of a taxpayer which he is compelled to and does pay, it is to be regarded as an involuntary payment which he may recover back, but if he pays the whole of such tax prior to December 20 of that year, including the second half, due in June of the following year, the advance payment made to obtain a rebate is deemed to be voluntary, and is therefore not recoverable.

William R. Smith, Owen J. Wood, and Alfred A. Scott, for the appellant.

G. A. Amos, city attorney, for the appellees; La Vergne Orton, of counsel.

JOHNSTON C. J. All the Justices concurring.

OPINION

JOHNSTON, C. J.:

The Atchison, Topeka & Santa Fe Railway Company brought this action against the city of Humboldt and the county treasurer of Allen county to recover $ 107.33 which it was required to pay as a tax on its property and which was paid under protest.

The city of Humboldt is a city of the second class, and in July, 1907, the following levies of city taxes were made:

"For payment of interest on waterworks bonds

Six Mills

For payment of bonds and interest thereon

Eight Mills

For street and alley fund

Four Mills

For payment of other interest

Two Mills

For general revenue

Ten Mills

For floating indebtedness

Eight Mills"

These levies were certified to the county clerk and extended on the tax rolls of the county for the year 1907. On December 20, 1907, when the railway company undertook to pay its taxes it discovered that eight mills had been levied for floating indebtedness in addition to a levy of ten mills for general revenue, and challenged the validity of the levy for floating indebtedness and the authority of the county treasurer to collect it. That officer insisted on payment, and the tax due at that time, as well as the second half payable in the following June, was paid under protest.

The only contention between the parties arises upon the eight-mill levy that was made to pay floating indebtedness. The indebtedness for which it was made consisted of a number of outstanding and unpaid warrants that had been issued from time to time. Except as to four of the warrants the nature of the claims for which they were issued was not shown. It did appear that one was for a judgment but the character of the claim which was the basis of the judgment was not stated. Two were issued for attorney's fees and one for improvement of the waterworks.

The railway company correctly contends that the levy of eight mills to pay outstanding warrants was unauthorized and illegal. The warrants for which this levy was made were probably such as might have been paid out of the general revenue fund of the city, but it appears that a levy to the full limit prescribed by statute for general revenue purposes had already been made for that year. A number of limitations upon the power of officers of a city of the second class in the levy of taxes have been fixed by the legislature. Among such restrictions there is a limit of ten mills for general revenue purposes, or what is usually spoken of as the ordinary current expenses, a five-mill limitation for the improvement of streets and alleys and the building of bridges, culverts and sewers (Gen. Stat. 1909, § 1374), and a ten-mill limitation for supplying the city and its inhabitants with electric light when it owns and operates the electric light plant. There is another limitation for the expenses of light and water in cities of the second class having more than 10,000 population and which do not operate their own plant or works. (Gen. Stat. 1909, § 1461.) After prescribing limits on levies for particular purposes there is an all-purpose limitation, and it was the manifest purpose that the total of all the levies for city taxes should be kept within this limitation unless expressly excepted from its operation by other statutes. It provides that "at no time shall the levy of all city taxes of the current year for general purposes, exclusive of school taxes, exceed four per cent of the taxable property of the city as shown by the assessment books of the preceding year." (Gen. Stat. 1909, § 1383.) It is not enough that the aggregate of the levies do not exceed this limitation, but none of the constituent levies can exceed the limit which applies to the particular class to which it belongs. So far as appears, the outstanding warrants for which the eight-mill levy was made are in part payable out of the general revenue fund. It is necessary, therefore, that the taxes imposed for this purpose shall not exceed the ten-mill limit applicable to ordinary current expenses and that it and the other legal levies for city taxes shall not exceed the four-per-cent limit. It has already been determined that there is no inconsistency between these provisions, and hence both limitations must be observed by the city authorities.

In Stewart v. Town Co., 50 Kan. 553, 32 P. 121, it was held that the ten-mill provision is a limitation on the ordinary current expenses of the city, and that expenses for...