Ex Parte Emerald Mountain Expressway Bridge
William H. Pryor, Jr., atty. gen.; and Ron Bowden, chief counsel and asst. atty. gen., and Keith Maddox, asst. counsel and asst. atty. gen., Alabama Department of Revenue.
Thomas T. Gallion III and Constance C. Walker of Haskell, Slaughter, Young & Gallion, L.L.C., Montgomery, for respondent Sarah G. Spear, Revenue Commissioner of Montgomery County.
PER CURIAM.
Emerald Mountain Expressway Bridge, L.L.C., Alabama River Parkway, L.L.C., and Black Warrior Parkway, L.L.C. (hereinafter referred to collectively as “the taxpayers“), petitioned this Court for a writ of certiorari to review the judgment of the Court of Civil Appeals reversing the trial court‘s judgment declaring that
Factual & Procedural History
The facts are undisputed. The taxpayers operate toll bridges in Elmore, Montgomery, and Tuscaloosa Counties and own real property used in connection with the operation of the toll bridges. The taxpayers are licensed to operate the toll bridges pursuant to
The dispute in this case involves the interpretation of
“To amend Section 23-1-81, Code of Alabama 1975, to allow the Department of Transportation or a county commission to issue licenses for the establishment and operation of toll roads, toll bridges, ferries or causeways; and to provide that no further tax or fees shall be imposed upon any of the toll roads, toll bridges, ferries or causeways after licensure.”
(Emphasis added.) As amended,
“After a license is issued pursuant to subsection (b) or (c) by a county commission or the State Department of Transportation, no further license of any type from any governmental body or agency, including, but not limited to, a business license, shall be required to construct, own, or operate the toll road or the toll bridge, ferry or causeway and no further license, tax, or fee may be imposed by any governmental body or agency.”
Pursuant to
Both the taxpayers and the revenue commissioners filed motions for a summary judgment. The trial court entered a summary judgment in favor of the taxpayers and stated that the language of
The revenue commissioners appealed to the Court of Civil Appeals; that court reversed the trial court‘s judgment, holding that
“First, we agree with the revenue commissioners that § 23-1-81 is a statute that regulates the licensing of operators of toll roads and bridges. The word ‘tax’ appears in § 23-1-81(d) in the phrase ‘no further license, tax, or fee may be imposed by any governmental body or agency.’ ... [Section] 23-1-81(c) grants the State Department of
Transportation the authority to license a private entity to operate a toll road or a toll bridge. We interpret § 23-1-81(d) as providing that the license issued by the State Department of Transportation in this case for the operation of a toll bridge is the only license needed for the operation of the toll bridge, and the phrase containing the word ‘tax’ prohibits any other governmental entity from requiring any further ‘license, tax, or fee’ for the operation of the toll bridge. Furthermore, the word ‘ad valorem’ is not used at all in Title 23—‘Highways, Roads, Bridges, and Ferries.’ Therefore, we conclude that § 23-1-81(d) does not express a clear legislative intent to exempt the taxpayers’ property from ad valorem taxation. “Our conclusion is further buttressed by § 40-9-1, Ala.Code 1975, which states: ‘The following property and persons shall be exempt from ad valorem taxation and none other ...’ (emphasis added). The property and persons subsequently listed in subsection (1) through (26) do not include the taxpayers’ or their real property. The taxpayers counter this reasoning by pointing out in their brief that Code sections other than § 40-9-1 provide for exemptions from ad valorem taxation.
“The taxpayers are correct that other provisions of Alabama law provide exemptions from ad valorem taxation; however, all those provisions contain an express exemption from ad valorem taxation.”
Standard of Review
We review a summary judgment de novo, viewing the evidence in the light most favorable to the nonmoving party while applying “the same standard as that of the trial court in determining whether the evidence before the court made out a genuine issue of material fact.” Bussey v. John Deere Co., 531 So.2d 860, 862 (Ala. 1988). A summary-judgment motion is to be granted only when the evidence demonstrates that no genuine issue exists as to any material fact and that the moving party is entitled to a judgment as a matter of law.
To defeat a properly supported summary-judgment motion, the nonmoving party must present substantial evidence creating a genuine issue of material fact. “[S]ubstantial evidence is evidence of such weight and quality that fair-minded persons in the exercise of impartial judgment can reasonably infer the existence of the fact sought to be proved.” West v. Founders Life Assurance Co. of Florida, 547 So.2d 870, 871 (Ala.1989).
Analysis
We first address the taxpayers’ argument that because the plain language of
The revenue commissioners argue that the Court of Civil Appeals applied the appropriate rules of statutory construction
All real property in this State is subject to ad valorem tax unless it is specifically exempt by a statute or a constitutional provision.
“’ “The ‘universal rule of construction is that exemptions from taxation, whether statutory or constitutional, are to be strictly construed, against the exemption and in favor of the right to tax, and that no person or property is to be exempted unless the intention to exempt such person or property clearly appears in some statute or constitutional provision.“’ State v. Bridges, 246 Ala. 486, 489, 21 So.2d 316, 317 [ (1945) ], 159 A.L.R. 678.
“‘It has long been the rule in this state that one seeking an exemption from taxation assumes the burden to clearly establish the right. In all cases of doubt as to legislative intention, the presumption is in favor of the taxing power. Title Guarantee Loan and Trust Co. v. Hamilton, 238 Ala. 602, [604,] 193 So. 107, 108 [1940]; Curry v. Reeves, 240 Ala. 14, 15, 195 So. 428, 430 [1940].’ ”
Flav-O-Rich, Inc. v. City of Birmingham, 476 So.2d 46, 48 (Ala.1985) (emphasis added) (quoting Brundidge Milling Co. v. State, 45 Ala.App. 208, 210, 228 So.2d 475, 477 (1969)). See also Brown, 188 Ala. at 169, 66 So. at 47 (stating that a tax exemption must be expressed in “clear and unambiguous terms” and “ought not to be deduced from language of doubtful import....“). The taxpayers, therefore, have the burden to “clearly establish” an exemption from ad valorem taxation. Flav-O-Rich, 476 So.2d at 48. However, we will not strictly construe
The taxpayers are seeking a tax exemption from a Code section whose subject is not taxation or exemption. Section 23-1-81 is included in Title 23 of the Code, entitled “Highways, Roads, Bridges, and Ferries.” That the Legislature knew how to clearly express a tax exemption within this title is evident by its enactment of
The taxpayers contend that because the Legislature deleted language from
We cannot read into
Even if we were to view the taxpayers’ failure to shoulder their burden of clearly establishing the right to an exemption as the basis for resorting to rules of construction, the taxpayers fare no better. Section 23-1-81(d) provides:
“After a license is issued pursuant to subsection (b) or (c) by a county commission or the State Department of Transportation, no further license of any type from any governmental body or agency, including, but not limited to, a business license, shall be required to construct, own, or operate the toll road or the toll bridge, ferry or causeway and no further license, tax, or fee may be imposed by any governmental body or agency.”
(Emphasis added.) As a rule of statutory construction, we have held that where a clause relating to the same subject matter is repeated throughout an act, each such clause should receive consistent construction. Ex parte Jackson, 625 So.2d 425, 428 (Ala.1992). The two clauses “no further license of any type” and “no further license, tax, or fee” both relate to conditions occurring after a license is issued pursuant to the statute. This is clear because the statute begins with the phrase “[a]fter a license is issued,” and then proceeds to explain the events that can occur only after a license is issued. Because both clauses relate to the same subject matter—events occurring after a license is issued—both should receive consistent construction within the statute. The use of the word “further” in both clauses ties the clauses to the initial event of obtaining a license to construct, own, and operate a toll road or a toll bridge.
The dissenting opinion to the Court of Civil Appeals’ opinion in Patterson, supra, relies upon the rule of statutory construction that provides that where a word, such as “further,” is repeated in a statute, “’ “and in one instance its meaning is definite and clear, and in the other it is susceptible of two meanings, it will be presumed to have been employed in the former sense.“‘” Patterson, 856 So.2d at 834 (quoting House v. Cullman County, 593 So.2d 69, 72 (Ala.1992), quoting in turn State v. Skeggs, 154 Ala. 249, 46 So. 268 (1908)). We agree that the first clause, “no further license of any type,” clearly indicates that after a license is obtained, no further license, either additional or existing, is required before one can construct, own, or operate a toll road or a toll bridge. Patterson, 856 So.2d at 833. We disagree, however, with the dissent‘s interpretation of the word “further” in the second clause to also mean that the taxpayers are exempt from all future additional taxes as well as those taxes in existence at the time
The taxpayers rely upon this Court‘s broad definition of the word “tax” as including all governmental charges, whether revenue or regulatory. See State v. Commercial Loan Co., 251 Ala. 672, 675, 38 So.2d 571, 573 (1949). In this case, however, the broad interpretation of the word “tax” as used in the second clause conflicts with other rules of statutory construction. The principle of “ejusdem generis” provides that “general words, following the enumeration of particular classes of persons or things, are construed to apply only to persons or things of the same general nature or class as those specifically enumerated.” Lambert v. Wilcox County Comm‘n, 623 So.2d 727, 731 (Ala.1993); Flav-O-Rich, 476 So.2d at 51 n. 5; Ross Jewelers v. State, 260 Ala. 682, 687, 72 So.2d 402, 405 (1954).
In Lambert, this Court considered whether the phrase, “any other legal entity,” as it is used in the definition of the word “business” in
The word “license” is defined as a “certificate or document” evidencing permission “to commit some act that would otherwise be unlawful.” Black‘s Law Dictionary 931 (7th ed.1999). Within the scope of
In strictly construing the word “tax,” we also embrace the doctrine of “noscitur a sociis.” See Winner v. Marion County Comm‘n, 415 So.2d 1061, 1064 (Ala.1982). This doctrine provides that “where general and specific words which are capable of an analogous meaning are associated one with the other, they take color from each other, so that the general words are restricted to a sense analogous
By reading the second clause as exempting taxpayers from only those additional and existing licenses, taxes, and fees dealing with the charges associated with the licensing of private toll roads and toll bridges, we can interpret both clauses using a consistent construction within the statute without violating the rule of construction relied on in the dissenting opinion to the Court of Civil Appeals’ opinion. The word “further” as used in both clauses means that the taxpayers are exempt from additional or existing licenses, taxes, and fees associated with the subject matter of the statute—the licensing of private toll roads and toll bridges. To construe the provision as providing a general exemption from ad valorem taxes would change the statute under a guise of construing it—an infringement upon the Legislature‘s prerogative.
This narrow construction is buttressed by the fact that we may ascertain the meaning of words by their context. See Sparks v. West Point Mfg. Co., 274 Ala. 102, 103, 145 So.2d 816, 817 (1962); Brown, 188 Ala. at 175, 66 So. at 49 (“what the Legislature intends by the use of a particular word or phrase is to be determined, not merely by the ordinary meaning of the word, but also by its context“); Brock v. City of Anniston, 244 Ala. 544, 549, 14 So.2d 519, 523 (1943) (the meaning of the words in a statute are to be construed within the context of the statute). The context of § 23-1-81 concerns only licensing for private toll roads and toll bridges, and the licenses, taxes, and fees associated with constructing, owning, and operating a toll road or a toll bridge. Therefore, the clauses within the section should be given the definition and construction that is “reasonable and just” when considered in connection with the subject matter of the section—the issuance of a license to establish or to operate private toll roads and toll bridges. See Brown, 188 Ala. at 176, 66 So. at 50.
We recognize that the rules of statutory construction are only aids in ascertaining legislative intent where a statute is ambiguous. See Moore v. City of Mobile, 248 Ala. 436, 440, 28 So.2d 203, 206 (1946). For example, if, upon consideration of the context and the subject matter of a statute, it is clear that the Legislature “intended the general words to go beyond the class specifically designated, the [ejusdem generis] rule [of statutory construction] does not apply.” Id. at 440, 28 So.2d at 206. Here, the subject of the entire statute deals only with licensing those who establish or operate toll roads, toll bridges, ferries, and causeways. Nothing in the statute indicates an intention by the Legislature to exempt the taxpayers from ad valorem taxes.
Conclusion
The provision in § 23-1-81(d) that no further tax can be imposed upon a private toll road or toll bridge after it is licensed applies only to taxes dealing with the actual licensing of those who establish or operate private toll roads and toll bridges. We affirm the judgment of the Court of Civil Appeals.
AFFIRMED.
SEE, LYONS, JOHNSTONE, HARWOOD, and STUART, JJ., concur.
MOORE, C.J., concurs in the result.
HOUSTON, BROWN, and WOODALL, JJ., dissent.
HOUSTON, Justice (dissenting).
I respectfully disagree with the per curiam opinion of the Court, and I adopt Judge Thompson‘s dissent in Patterson v. Emerald Mountain Expressway Bridge, L.L.C., 856 So.2d 826, 829 (Ala.Civ.App. 2002), as my dissent.
I authored IMED Corp. v. Systems Eng‘g Assocs. Corp., 602 So.2d 344 (Ala. 1992), and DeKalb County LP Gas Co. v. Suburban Gas, Inc., 729 So.2d 270 (Ala. 1998); I would be ignoring the holdings of those cases if I did not conclude that the plain and unambiguous language of
Notes
In his dissenting opinion, Justice Houston cites IMED Corp. v. Systems Eng‘g Assocs. Corp., 602 So.2d 344 (Ala.1992), and DeKalb County LP Gas Co. v. Suburban Gas, Inc., 729 So.2d 270 (Ala.1998), for the proposition that the plain and unambiguous language of § 23-1-81(d) exempts the taxpayers from the payment of ad valorem taxes. However, neither case deals with a tax exemption. See IMED, 602 So.2d at 346 (interpreting a statute dealing with the misappropriation of trade secrets); DeKalb County LP Gas, 729 So.2d at 276 (interpreting a statute dealing with the enumerated powers of an electric cooperative).
This Court‘s holding in Crim v. Phipps, 601 So.2d 474 (Ala.1992), however, is more closely analogous to the issue now before this Court. In Crim, this Court acknowledged that tax exemptions must clearly appear in a statute or constitutional provision and held that a lease for profit to a religious, educational, or charitable entity was not a use of the property entitling the taxpayer to an exemption as provided by statute or the Alabama Constitution. Id. at 476-77. See also Ex parte Fleming Foods of Alabama, Inc., 648 So.2d 577, 578 (Ala.1994) (holding that the use tax assessment did not violate the Commerce Clause and stating that “exemptions from taxation are to be strictly construed against the person or party claiming the exemption and in favor of the right to tax“).