Tr.s For Support Of Pub. Sch. v. Murphy

• Decision Date: 16 August 1943
• Docket Number: Nos. 229, 232.,s. 229, 232.
• Citation: 33 A.2d 570,130 N.J.L. 434
• Parties: TRUSTEES FOR SUPPORT OF PUBLIC SCHOOLS v. MURPHY, Receiver of Taxes. MURPHY, Receiver of Taxes, v. ESSEX COUNTY BOARD OF TAXATION et al.
• Court: New Jersey Supreme Court

130 N.J.L. 434

33 A.2d 570

TRUSTEES FOR SUPPORT OF PUBLIC SCHOOLS

v.MURPHY, Receiver of Taxes.

MURPHY, Receiver of Taxes,

v.ESSEX COUNTY BOARD OF TAXATION et al.

Nos. 229, 232.

Supreme Court of New Jersey.

Aug. 16, 1943.

Proceedings for writs of certiorari by the Trustees for the Support of Public Schools to determine the validity of assessments of realty owned thereby for taxation by Vincent J. Murphy, Receiver of Taxes of the City of Newark, and by Vincent J. Murphy, as Receiver of Taxes, to review a determination of the Essex County Board of Taxation dismissing the city's petition to add such property to the tax rolls.

Assessments set aside, and writ allowed to the Receiver of Taxes dismissed.

May term, 1943, before CASE, DONGES, and PORTER, JJ.

David T. Wilentz, of Perth Amboy, for Trustees for Support of Public schools.

Raymond Schroeder and Joseph A. Ward, both of Newark, for Vincent J. Murphy, Receiver of Taxes.

DONGES, Justice.

Two writs of certiorari were allowed to have determined a single question, namely, whether certain real estate in the City of Newark, owned by the Trustees for the Support of Public Schools, is subject to taxation by the municipality. One writ issued out by the Trustees to have determined the validity of assessments for taxation of said property for the years 1935, 1936, 1937, 1941, 1942 and 1943. The claim of the city that the property is subject to taxation is based on R.S. 54:4-3.3, N.J.S.A., which sets forth certain classes of property which are exempt from taxation, and then provides: ‘But this exemption shall not include real property bought in for debts or on foreclosure of mortgages given to secure loans out of public funds or out of money in court, which property shall be taxed unless devoted to public uses.’

The other writ is sued out by the municipality to review a determination of the Essex County Board of Taxation dismissing the municipality's petition that said property omitted from the tax rolls of the City of Newark for the year 1940 be added to said rolls.

It is stipulated by the parties that on March 23rd, 1868, Joseph L. Hewes and John M. Phillips executed a mortgage to the Commissioners of the Sinking Fund of New Jersey for $25,000; on January 25th, 1869, another mortgage was executed by said parties to said Commissioners for $15,000; that on May 12th, 1903, the State Treasurer, who was vested with the powers of the Commissioners (P.L.1891, p. 136), assigned the two mortgages to the Trustees for the Support of Public Schools (P.L.1903, pp. 60, 366); after default, the mortgages were foreclosed, and by deed dated August 12th, 1935, the Sheriff of Essex County conveyed said property to said Trustees, who continue to own same.

This case is in all essential respects similar to State v. Rutherford, 98 N.J.L. 465, 120 A. 202, 203, where Mr. Justice Swayze, speaking for the Court of Errors and Appeals, said: ‘The substantial claim on the part of the prosecutor is that under the Constitution, article 4, section 7, paragraph 6 [N.J.S.A.],...