108 Ky. 351 | Ky. Ct. App. | 1900
Opiniow op the court by
Reversing.
By the original charter of the city of Middlesboro, which became a law March 14, 1890' (Sess. Acts 1889-90, vol. 1, p. 688, section 116), it was provided: “The provisions of this charter as to ad valorem taxation shall not apply to any tools or machinery belonging to manufac-tories or to any raw material for manufacture or goods manufactured, in said city, for a space of five years from
It is insisted for appellee that the exemption under the original charter ceased with the adoption of the present act for the government of cities of this class, and that by virtue of this act it is entitled to an exemption of all its property for five years; it being only partially established at the time the ordinance above quoted was passed. It is insisted, however, for the city, that the constitutional provision, as well as the statute and ordinance ■made by virtue of it, are prospective in their operation, and do not refer to manufactories already established in the city. After appellee located its plant at Middlesbo-ro, and acted on the original charter granting it a certain exemption from taxation for five years-, the State could not withdraw the exemption, to its prejudice. Com. v. Burnside & C. R. Co., 95 Ky. 60, [23 S. W. 868;] 12 Am. & Eng. Enc. Law (2d Ed.) p. 385. The appellee is therefore entitled to the exemption conferred by the original charter for the five years therein provided for.
'But it does not follow that it is also entitled to the additional exemption provided for under the new law for the government of the city. The Constitution authorizes this exemption to manufacturing establishments, "as an inducement to their location.” The statute empowered
The board of supervisors had no power to determine whether appellee’s property was subject to taxation, and
It appears from the record that appellee has within the city 9XV acres of land, valued, with the improvements, at $20,000, and personal property valued at $500. It also appears that the collector, when enjoined, had levied upon the real property, machinery, and manufacturing plant, and was proceeding to sell same. This was unwarranted, as he had no authority to levy upon the realty without exhausting the personal property, and to this extent the injunction was proper. But so much of the judgment as enjoined the city or its officers from collecting the tax for the year 1894 was erroneous.
The fact that appellee had only partially established, though it had for several years operated, its establishment, did not affect its liability.
Judgment reversed, with directions to the court below to enter a judgment discharging the injunction enjoining the city or the tax collector from collecting or attempting to collect from appellee municipal taxes on its manufacturing establishment or plant for the year 1894, and adjudging all its property liable to assessment and taxation for municipal purposes for the year 1894, except the tools and machinery belonging to the manufactory, raw material for manufacture or goods manufactured in the city, and for further proceedings not inconsistent with this opinion.