28 A.2d 485 | N.J. | 1942
This writ of certiorari brings up for review a distress and notice of sale of certain properties stored on premises of Independent Warehouses, Inc., in the Township of Saddle River, to satisfy unpaid personal property taxes assessed against Pennsylvania Coal Co.
Prosecutor filed nine reasons why it believes the proceedings of the Township by its collector of taxes were erroneous. We need consider but one of them. Reason Seven reads: "The coal alleged in said notice to have been assessed and taxed was, at the time of the assessment, stored in the warehouse of the Independent Warehouses, Inc., which is a corporation engaged in the business of storing goods for hire, and, therefore, exempt from taxation under section 54:4-3.20 of the Revised Statutes of 1937."
The factual situation discloses that Pattison Bowns, Inc., together with a number of other coal companies, stored coal *136
with Independent Warehouses, Inc., which was engaged in the business of storing goods for hire. In furtherance of the business, it leased from Pennsylvania Coal Company, a tract of 56 acres, upon which there were tracks, derricks and other paraphernalia necessary to unload and load large stocks of anthracite coal. The coal is stored in piles fifty to seventy feet high, each pile surrounded by a wooden fence six to eight feet high. Necessarily, the storage area is not roofed over. Defendants argue that to come within the exemption statute R.S.
54:4-3.20 it is necessary to show that the coal was stored in a warehouse of one engaged in the business of storing goods for hire. In Halligan McLellan, Inc., v. State Board of TaxAppeals,
Defendants next urge that "no charge is made for storage" and therefore Independent Warehouses, Inc., is not "engaged in the business of storing goods for hire." In this argument, defendants fall into error. The storage charges are included in the tariff rates charged by the Erie Railroad, whose trackage feeds the yard in question. It clearly appears *137 that the fourteen cent charge per ton for unloading at the yard and a like charge for loading is in fact the charge of the warehouse company, although it is collected by and included in the tariff rates of Erie Railroad.
The constitutionality of R.S. 54:4-3.20 is not here discussed; it having been held to be free of constitutional infirmity in Schwartz v. Essex County Board of Tax Appeals,
For the reasons stated, we conclude that the coal sought to be taxed was exempt and therefore the notice of distress and sale under review are set aside, with costs to the prosecutor.