36 Misc. 2d 772 | N.Y. Sup. Ct. | 1962
This action for a declaratory judgment seeks a declaration to the effect that Local Law No. 1,1962, of the City of Glen Cove is invalid for the reason that it transcends the delegations of power granted by the State Legislature in chapter 278 of the Laws of 1947, as amended. The additional point is made that section 1 of article XYI of the State Constitution which provides in part that ‘ ‘ Any laws which delegate the taxing power shall specify the types of taxes which may be imposed” prohibits giving the enabling act an interpretation which would sustain the local law.
The facts are not in dispute and they have been stipulated to by the attorneys for the respective parties.
It appears that the plaintiffs are the owners of three theatres in Glen Cove and that the new law subjects them to a 5% tax on admissions, which they are directed to collect from their patrons. A good deal more has been shown, for example, that 90% of plaintiffs’ patronage comes from outside the City of Glen Cove, that there was local pressure to put the major tax burden on nonresidents and that it was the probable motive of the City Council to tailor the law to accomplish this result.
In the field of legislation, motive and intent have different connotations and, in the instant case, each must be separately considered for a proper disposition of some of the arguments propounded. The former may be defined as the impelling force or reason which induces action and precedes it. The latter signifies the intendment and meaning of the enactment, the purpose it seeks to accomplish, its construction, all as gathered from the text of the law itself, legislative studies, etc.
In directing their attack upon the local enactment because of an alleged improper motive, plaintiffs point in the record to a transcript of what was said by members of the City Council and by persons attending the public hearings held prior to the law’s passage.
To fortify their position as to the interpretation to be given the enabling act they direct attention to a subsequent amendment which was proposed by a local legislator but which never reached the floor of the Legislature for discussion.
Neither of these arguments can be given any weight in the consideration of the issues for, as will be pointed out later, the motive behind legislation is not, generally speaking, within the Judicial orbit and, as to the second argument, whatever a particular legislator had in mind when he proposed an amendment some years later is no evidence of the legislative intent when the original bill was passed.
As to the latter point, see Matter of Delmar Box Co. (Ætna Ins. Co.) (309 N. Y. 60, 67) where it is stated: “ Reliance is placed upon the views expressed by the assemblyman who introduced the bill in 1952, but those views cannot serve as a reliable index to the intention of the legislators who passed the bill. It is sufficient to note that they were stated, not in the course of debate on the floor of the legislature, but in a memorandum submitted to the governor after the passage of the bill, and there is no showing that the other legislators were aware of the broad scope apparently intended for the bill by its sponsor. (Cf. Matter of Morse [Bank of America], 247 N. Y. 290, 302-303; Woollcott v. Shubert, 217 N. Y. 212, 221-222; 2 Sutherland on Statutory Construction [3d ed., Horack, 1943], § 5011.) ” As to the first preliminary argument, it is generally acknowledged that the motives of a legislature body, absent corruption, are beyond the pale of judicial inquiry, and therefore of no relevance or consequence. Bacon v. Miller (247 N. Y. 311, 318-319) contains the following apt quotation: “ With the motives which actuated the Board of Aldermen, we have nothing to do at all events in the absence of fraud or corruption.” The court in Kittinger v. Buffalo Traction Co. (160 N. Y. 377, 388) went much further and states: ‘ ‘ After considerable investigation of the subject I feel warranted in saying that there is no case in any court of last resort in this country holding that the motive of legislation may be inquired into by the courts and the legislation set aside, if in
However, none of these cases suggest that££ motive ” as such is a proper field of inquiry in assessing whether a legislative body has stayed within its powers, or that a selfish, ignoble motive can convert an otherwise legal act into one that is illegal. The nearest approach to this is the Stahl Soap case (supra) which sustained a complaint where the officially disclosed purpose showed that an ostensible taking of land for a public purpose was in fact a taking for a private purpose.
Neither is it discrimination in a legal or objectionable sense, that the practical effect of a law is to collect most of the tax
Having disposed of these antecedent questions, we now come to the heart of the issue, viz., what taxing power was granted by the State to the municipalities by chapter 278 of the Laws of 1947, as amended, and is the local law violative of that delegation of power. What limitations, if any, did the Legislature intend to place upon the taxing powers of municipalities and what is the meaning of the enabling act H
Section 1 of chapter 278 of the Laws of 1947 authorizes counties outside New York City (and § 2 of chapter 278, as amended, gives like authority to a city such as Cien Cove) power to impose “ any or all of the following types of taxes ”. There then follow nine subdivisions labeled (a) to (i). Some of these are divided into many paragraphs which have numerous clauses of their own which fix with meticulous care what may be taxed: witness subdivision (a) which has an exception to an exception to an exception; first, food products are excepted from the tangible personal property tax; then beverages sold at bars are excepted from food products; finally' coffee, tea and beer are excepted from bar beverages, except when taxable under two other subdivisions. Emerging from this confusion seems to be a plan to cover a different type of tax under each subdivision, e.g., sales taxes on tangible personal property under subdivision (a), a restaurant tax under subdivision (b) [called paragraph (b) below], a utility tax under subdivision (c), a liquor license tax under subdivision (d), an amusement tax under subdivision (e) which is the topic which concerns us in this case, and others. In relevant part, subdivision (e) [called paragraph (e) below] reads as follows: “ Taxes not in excess of five per cent on admissions or subscriptions to and charges for entertainment, amusement or use of facilities therefor, including theatres, operas, athletic fields, sporting arenas, bowling alleys, billiard, pool and ping pong tables and other similar places or facilities of entertainment or amusement, except race tracks, boxing,
The local law follows this classification only in part. It covers “ theatres, operas, athletic fields, sporting arenas, billiard, pool and ping pong tables and other similar places or facilities of entertainment or amusement in the city, including admission by season ticket or subscription, but excluding admissions or subscriptions to and charges for race tracks, boxing, sparring or wrestling matches or exhibitions and coin operated amusement devices.”
It will be observed that of the three categories set forth in subdivision (e), two are omitted entirely from the local law, to wit, the tax on dues and membership fees and the tax on roof gardens and cabarets. In addition bowling alleys have been excised from the first category.
The question now presents itself — Did the Legislature when it said “ any or all types of taxes,” mean to delegate to the municipality the right to further subdivide the types, or to pick and choose at its discretion, omitting those businesses within a type that it chose not to tax; or did they mean to allow a choice only as between the nine types as standardized by it, requiring a tax to cover in toto every tax object specified in any particular type or subdivision?
Of importance too is the fact that the model local law which was prepared by the State Tax Commission pursuant to the mandate of section 10 of chapter 278 of the Laws of 1947 (as amd. by L. 1948, ch. 651, § 2) for the purpose of effectuating uniform administration and distribution of such taxes, in contrast with Local Law No. 1, follows the State statutory scheme and includes, without exception, every tax object listed in subdivision (e).
It should also be noted that section G46-2.0 of the New York City Administrative Code, the authority for which is this same subdivision (e) of section 1 of said chapter 278 of the Laws of 1947, being made applicable to cities of over 1,000,000 by section 3 of chapter 278 of the Laws of 1947, as amended, and which was passed upon in R. K. O.-Keith Orpheum Theatres v. City of New York (308 N. Y. 493, revg. 285 App. Div. 374, revg. 206 Misc. 602) follows the model law, although the point we have here to decide was not discussed in that case.
Accordingly, judgment is granted in favor of the plaintiffs and against the defendants, without costs.