51 Barb. 352 | N.Y. Sup. Ct. | 1868
The statute of this state relating to, and designating the subjects of, taxation, provides in general terms, that, “ All lands and personal estate within this state, whether owned by individuals or by corporations, shall be liable to taxation, subject to the exceptions ” afterwards “specified.” (1 R. S. 5th ed. 905, § 1.) And the object of the subsequent legislation had upon the subject was not to enlarge the description thus given of taxable property, but for the purpose of more clearly specifying and describing it. When, therefore, it was afterwards, enacted that “ Every person shall be assessed in the town or ward where he resides when the assessment is made, for all personal estate owned by him, including all personal estate in his possession or under his control as agent, trustee, guardian, executor of administrator, and in no case shall property so held under either of these trusts be asses-
In order to determine whether the relator was liable to he assessed and taxed for his capital invested in loans in the states of Wisconsin and Illinois, for which securities were taken and held in those states by his agents, it will be necessary to ascertain whether the property"can be properly and legally held to have been in this state at the time when the assessment was made. If it were within this state at that time, then the assessment was legal and proper ; if not, the assessment was illegal, and the assessors had no jurisdiction over that part of the property assessed.by them. For, as has been already shown, the statute only renders such personal property liable to taxation as may be within this state.
In order to avoid the consequences of this exposition of the statutes, the same learned counsel very earnestly urged upon the consideration of the court, that as this property consisted of what the law denominates choses in action, being obligations of an intangible nature, it was within the state, because the relator was its owner. That from its nature it must follow the person of him to whom the obligations are owing. By a legal fiction the personal estate of the owner has, for some purposes, been deemed to follow its owner. But in the adjustment of systems of taxation this fiction has been very generally rejected, on the ground that it was productive of unjust consequences. And other cases exist where, for a like reason, its application has been denied. As to visible and tangible personal property capable of having an actual situs, this fiction has not been allowed to prevail, so as to render such property liable to taxation when it was not within this state, even though the owner was here. (The People v. The Commissioners of Taxes, 23 N. Y. Rep. 224.) And the reasoning of the
In the case of Catlin v. Hull, (21 Verm. Rep. 152,) this precise question was presented, under similar statutory provisions to thos.e existing in this state. In that case the moneys were loaned on promissory notes by an agent residing in the state of Vermont, the principal residing in the city of New York, but the securities were kept in the possession of the agent The Supreme Court of the state of Vermont held the property taxable in that state, rejecting the application of the legal fiction that the situs of the property followed that of the owner. This case was
Daniels, Marvin, Davis and BarJcer, Justices.]
The present controversy must be disposed of upon the authority of the principle sanctioned and settled by the decision made in the case of Hoyt v. The Commissioners of Taxes, (supra,) within the reasoning of which it is plainly included, and of Catlin v. Hull, which the Court of Appeals, on that, as well as a subsequent occasion, adopted, as containing the true rule of law applicable to the disposition of questions of this description. "Within these authorities the assessment now complained of was unauthorized by the statutes under which it was made, and it should, therefore, be reduced in conformity to the application which the relator made to the defendants for that purpose. This, according to the return made to the writ, will reduce the assessment of the relator’s personal property to the sum of $8000.
Judgment accordingly.
Marvin, J. dissented.