91 N.Y.S. 136 | N.Y. App. Div. | 1904
The action is to cancel and set aside taxes on certain real estate of the plaintiff in the borough of Brooklyn, consisting of five lots with houses thereon, given by Mr. Charles Pratt to the plaintiff after its incorporation. The realty is not connected with the property of the plaintiff directly devoted to its educational and charit
The plaintiff alleges that on the second Monday of January, 1902, the value of its property did not exceed $3,000,000, and that the taxes laid cloud its title. The defendant’s demurrer that the complaint does not state facts sufficient to constitute a cause of action was sustained.
We think that Matter of Huntington (168 N. Y. 399) is conclusive on the question of exemption. Although the question in that case arose upon a transfer tax, yet the court, in reaching its judgment, held that the Tax Lax is such a revision and substitute for all former exemption statutes, general and special, as to supersede and repeal them by implication. (See, too, People ex rel. Catholic Union v. Sayles, 32 App. Div. 203; affd. on opinion below, 157 N. Y. 679.) We think that the general rule thus expressed by the Court of Appeals must obtain, and that there is no warrant in this case for following the first department of this court in its judgment in People ex rel. New York University v. Wells (94 App. Div. 271).
But it is contended that this construction of the Tax Law, applied to the charter of the plaintiff, is repugnant both to the 5th amendment of the Constitution of the United States and to article 1, section 10 thereof. The 5th amendment has no application, inasmuch as it is exclusively restrictive upon Federal powers. (Barron v. Mayor and City Council of Baltimore, 7 Pet. 243; Fox v. State of Ohio, 5 How. [U. S.] 410, 434; Spies v. Illinois, 123 U. S. 131.) The Constitutions of New York of 1846 and 1894 contain this provision : “ Corporations may be formed under general laws; but shall not be created by special act, except for municipal purposes, and in cases where, in the judgment of the
In Asylum v. New Orleans (105 U. S. 362), cited by the learned and able counsel for the appellant, the court points out that there was no full and unqualified reservation that the Legislature might alter or amend the charter (p. 366). And furthermore, Bradley, J., says that the cases cited by the counsel for the city (Tucker v. Ferguson, 22 Wall. 527, and West Wisconsin Railway Co. v. Board of Supervisors, 93 U. S. 595) do not apply in that the Constitutions of Michigan and Wisconsin reserved in their respective Legislatures the power to alter and to repeal. Stearns v. Minnesota (179 U. S. 223) is well discriminated by the learned and able counsel for the
The plaintiff’s practical criticism is that the State will receive all the benefits originally derived from the institution, and yet be relieved of its obligation of exemption. It is, of course, true that whatever benefits such an institution may confer upon certain inhabitants of the State, and, doubtless, they, are many, will still be conferred so long as the institution continues, even if this exemption from local taxation be withdrawn. On the other hand, it may
This particular property is not exempt under that general law (Tax Law, § 4, subd. 7), for although the profits are applied to tjhe purposes of the plaintiff, the property is not of the foundation of the institution, but is leased out to individuals, and, presumably, for totally foreign purposes. (People ex rel. Young Men's Assn. v. Sayles, 32 App. Div. 197; affd. on opinion below, 157 N. Y. 677.)
The judgment should be affirmed, with costs.
All concurred.
Final judgment affirmed, with costs.
Sic.
See 1 R S. 600, § 8, revised in Gen Corp. Law (Laws of 1892, chap. 687), 40, added by Laws of 1895, chap. 672.— [Rep,
Laws of 1896, chap. 908, as amd. by Laws of 1897, chap. 871.— [Rep.