12 Colo. 497 | Colo. | 1889
delivered the opinion of the court.
The Colorado Seminary having been organized as a corporation, and having proceeded in the performance of its appointed work under the special charter granted by the territorial legislature, the provision of this charter allowing exemptions from taxation became a part of the contract existing between it and the state. This contract could not be impaired by subsequent legislation, constitutional or statutory. Cooley, Const. Lim. 415, and cases cited; Railway Co. v. McClure, 10 Wall. 511; White v. Hart, 13 Wall. 649; Delmas v. Insurance Co.
The wisdom and propriety of exempting from taxation certain property devoted to education are not questioned; but the foregoing principles are nevertheless to be applied in construing statutes granting such immunity.
The charter provision under which exemption in the present case is claimed reads: “Such property as may be necessary for carrying out the design of the seminary in the best manner, while used exclusively for such purpose, shall be free from all taxation.” If the land referred to in this action is exempt from taxation by virtue of- the foregoing statute, it follows logically that all real estate owned by the corporation is favored with a like immunity; for the seminary is only authorized to acquire.
Thus, under the view of counsel for appellee, ownership becomes the test of exemption from taxation. But if the legislature had intended to establish this test that body would doubtless have so declared, thereby simplifying the provision, and avoiding the present and like controversies. Instead, however, of saying that property owned by the institution should be exempt from taxation, the legislature enacted that property necessary for carrying out the design thereof, “ while used exclusively for such purpose,” should enjoy this immunity. The thought that ownership was intended to be the test is expressly negatived. The. clause, “while used exclusively for such purposes,” especially when coupled with the preceding expression, “such property as may be necessary,” etc., denotes an intention to make something else besides ownership the criterion. If this be not so, '• then the clause in question is meaningless. The word “used” embodies a different thought from the word “owned.” The phrase “used exclusively ” is clearly a limitation upon the general ownership. It is here employed in contradistinction to “'ownership.” It designates a specific part or portion of the property owned. It will not do to say that ownership implies use, because-either may exist without the other. There may be an ownership only, independent of a use, and there may be a use not coupled with ownership.
We are aware of no instance where use, and not ownership, was by constitution or statute made the test of exemption, in which it has been held that property situated like the land here in question was exempt from tax-; ation. In Washburn College v. Commissioners, supra. the constitutional provision construed read: “All prop-
The decision in University v. People, 99 U. S. 309, so confidently relied upon by counsel for appellee, is not in conflict with the foregoing view. The constitution of Illinois adopted in 1848, which is there construed, reads: “And such other property as the general assembly may deem necessary for school * * * purposes may be exempt from taxation.” The court holds that there is a broad distinction, so far as this question is concerned, between property “necessary for school purposes” and property “used for schools.” And the opinion expressly declares that had the latter phrase, or its equivalent, been employed, the court would have agreed with the supreme bench of Illinois in denying the exemption where the property was not in actual use. Mr. Justice Miller, who writes the opinion, for the purpose of showing the marked difference in this respect between the constitutional pro
The language employed in the statute before us is perhaps not so plain as it might be; but a fair construction thereof points to the conclusion that it was the intention to relieve from taxation only such property as should be in actual use, viz., the seminary buildings, campus, and the like. We certainly- cannot say that the purpose to exempt property situated like the land here referred to appears with that degree of clearness required in this class of cases by the authorities cited at the commencement of this opinion.
The judgment of the court below will be reversed and the cause remanded, with directions to dismiss the complaint.
Reversed.