Town of Arlington v. Central of Georgia Ry. Co.

• Decision Date: 18 February 1907
• Citation: 56 S.E. 1015,127 Ga. 721
• Parties: TOWN OF ARLINGTON v. CENTRAL OF GEORGIA RY. CO.
• Court: Georgia Supreme Court

56 S.E. 1015

127 Ga. 721

TOWN OF ARLINGTON v. CENTRAL OF GEORGIA RY. CO.

Supreme Court of Georgia

February 18, 1907

Syllabus by the Court.

Following the ruling in City Council of Augusta v. Central Railroad, 78 Ga. 119, there is no authority vested in any municipality in this state to levy and collect an occupation tax upon a commercial railroad doing business in such municipality.

A commercial railroad, which maintains a warehouse merely for the purpose of receiving goods for shipment and storing goods shipped to such point and does not seek or solicit goods for storage, but merely stores in such warehouse the goods of consignees, for the reason that such consignees fail or refuse to call for and receive the same, and charges only for such storage the amount authorized by the railroad commission of the state, and for the time so authorized, is not subject to the provision of a municipal ordinance levying an occupation tax upon warehousemen. When a municipality is prohibited by law from taxing the general business of a commercial railroad as a common carrier, it cannot segregate from such business a necessary incident and classify it as an occupation and tax it as such.

Error from Superior Court, Calhoun County; W. N. Spence, Judge.

Action by the Central of Georgia Railway Company against the town of Arlington. Judgment for plaintiff. Defendant brings error. Affirmed.

Jesse W. Walters, for plaintiff in error.

Wooten & Hofmayer and Donalson & Donalson, for defendant in error.

COBB P.J. (after stating the facts).

1. In the case of City Council of Augusta v. Central Railroad, 78 Ga. 119, it was held that a municipal corporation of this state had no power to levy an occupation tax upon what is known as a "commercial railroad company," as distinguished from a "street railroad company." In that case the city authorities of Augusta had embraced in their ordinance levying specific taxes the following item: "On all railroads, $500." Mr Justice Blandford says: "The ordinance of the city taxing railroads, is not a tax on business occupations. A railroad itself does not carry on any business occupation. It is merely property. It is not a person or an individual, so as to be an inhabitant or resident of the city of Augusta. If a railroad company, which is a corporation, should carry on a business in the city of Augusta, such as warehouseman broker, drayage, or commission business, etc., it would be liable to be taxed as any other person carrying on a like business. But, if the railroad company merely does such business as they are authorized to do under their charter as carriers of freight and passengers, then there is no authority in the city of Augusta to levy a specific tax against them for such business or occupation; but the right to tax such corporations is reserved to the state by Acts Leg. 1874, p. 103. This act provides that a return shall be made by the presidents of all railroad companies in this state to the Comptroller General, and that the property be taxed as the property of other people of this state. There is no authority vested in any city in this state to levy and collect such tax, except there be property in such city owned by a railroad company disconnected with the operation of such road." This ruling has never been followed, and the case has never been referred to in specific terms of approval. In Atlanta National Ass'n v. Stewart, 109 Ga. 94, 35 S.E....