118 Ind. 214 | Ind. | 1889
The facts, as stated by counsel for appellants, and not controverted by counsel for appellee, are : The Indianapolis and Evansville Railway Company was building a railroad from Evansville to Washington, Indiana. In order to build the road, the president and manager of the corporation imported steel rails from London to Evansville, via New York. Not being able to pay the freight and duties, the rails were warehoused, under the warehouse system of the Treasury Department, under the provisions of chapter 7, of the U. S. R. S.; in lieu of an actual warehouse or place of storage, they were stored on the grounds of the E. & T. H. Railway Company, who had the rails in charge, with a lien for the carriage. They were taken charge of by the surveyor of the port, as unclaimed goods, under section 2965, IT. S. R. S., and, by consent of all the parties, stored in the yard of the Evansville & Terre Haute Railway Company, and guarded by a watchman of the surveyor. While in that position an attempt was made to make an assessment upon them for State and county taxes for the year 1882. The railroad corporation being insolvent, the steel rails afterwards went into the hands of a receiver, and were sold, with the roadbed and other property, to the appellant, the Evansville and Indianapolis Railroad Company, a corporation organized by the shareholders and bondholders of the old corporation, who bought the road-bed, steel and fixtures, and assumed the payment of all liens. The appellee, being treasurer of the county, filed his claim, by an intervening petition, for the taxes which were alleged to be assessed. The intervening petition was pending when the property was sold, and there was a stipu
It was then proved by parol testimony, over the objection of the appellants, that, at the meeting of the Vanderburgh county board of equalization, the matter of railroad iron in the yard was brought to the attention of the board, and the question of valuation was brought up; and the board, ascertaining the value from the surveyor, or some other person not an officer of the railroad company, ordered it assessed; and the auditor, by direction of the board, made the entry on the assessor’s roll as hereinbefore set out, no entry being made in the minutes of the proceedings of the board.
There are two questions presented: First. Were the steel rails in controversy subject to taxation ? and, Second. Were they properly assessed for taxation for State and county purposes for the year 1882 ? If they were not subject to taxation, or were not properly assessed for taxation, the appellee can not recover; and, in view of the opinion we entertain in regard to the latter question, it will not be necessary to consider the first. There is no controversy as to the fact that the only attempt to assess the property was made by the board of equalization; that, by the direction of the board, the auditor made the entry on the assessor’s'roll, and afterwards entered it upon the treasurer’s books. In the case of Kuntz v. Sumption, 117 Ind. 1, this court held that the statutory provisions concerning the authority of the county board of equalization to increase the valuation of the property of an individual taxpayer, listed by him for taxation, are unconstitutional. In that case this court says: “ We do not affirm that the provisions of the statute conferring authority upon the county board to change the general levy are invalid, nor do we affirm that they are invalid in so far as they confer authority to make orders affecting taxpayers generally. We do, however, affirm that they are invalid in so far as they assume to confer
Cooley on Taxation (2d ed.), chapter 12, pp. 351, 352, 353, speaking of assessments, says: “ It does not, therefore, of itself lay the charge upon either person or property, -but it is a step preliminary thereto, and which is essential to the apportionment.” Again the same author says: “An assessment, when taxes are to be levied upon a valuation, is obviously indispensable. It is required as the first step in the proceedings against individual subjects of taxation, and is the foundation of all which follow it. Without an assessment they have no support, and are nullities. The assessment is, therefore, the most important of all the proceedings in taxation, and the provisions to insure its accomplishing its office are commonly very full and particular. The assessment being so important, the statutory provisions respecting its preparation and contents ought to be observed with particularity. They are prescribed in order to secure equality and uniformity in the contributions which are demanded for the public service, and if officers, instead of observing them, may substitute a discretion of their own, the most important
In this case there was no attempt made to assess the property, except by the board of equalization, and the action taken by the board, under the authority we have cited, was void and of no effect. It does not appear from the record that any person connected with the railroad company had any knowledge that the board was inquiring into the matter or attempting to make any assessment. We express no opinion as to whether the property assessed is not railroad property, subject to being listed and assessed under the statutes-regulating the listing and assessment of railroad property. The court erred in overruling the motion for a new trial.
Judgment reversed, at costs of appellee, and for further proceedings not inconsistent with this opinion.