OPINION OP THE COURT.
-This is a proceeding by certiorari to-review the action of the State Board of Equalization in attempting to equalize the valuation of property for the purposes of taxation. It is admitted by counsel on both sides that the proceeding by certiorari in this jurisdiction is confined within the common-law limits; there being no-statute enlarging the scope of the remedy. The question. then, is whether the Board of Equalization had power or jurisdiction to do what it has done. If the board had the power and jurisdiction to do what was done, it will be assumed in this discussion that the aption was correct, at least that it is not subject to review for mere error.
The- state board made an order attempting to equalize the valuation of property throughout the State for the purposes of taxation. The order made decreases valuations in every County in the State save one; said decreases aggregating $1,585,590. They made increases in every County in the State; the said increases amounting to $9,233,673. This leaves a net increase of valuation of $7,648,083. The details of said action, in so far as they relate to increases, are best shown by the following table, viz.:
It is ordered by the board that the following raises be made on different classes of taxable property in the various Counties of the State; such percentage or raise being upon the valuation of properties now appearing upon the tax roll as follows:
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An analysis of this table discloses that the state board raised valuations of property according to classes, and by means of certain percentages in each instance. In the case of about half in number of the different classes of property, the valuations were raised in some counties, and not raised in others. For instance, in the Counties of Dona Ana, Grant, Guadalupe, and Lincoln, no raises were made upon agricultural lands, grazing lands, timber lands, coal lands, and city town lots, while in most of the other Counties the valuation of these classes of property, or-some of them, were raised in considerable amounts. The valuation of other classes of property was raised in every County in the State where any of said property had been returned and appeared on the tax rolls. This appears to be the case in regard to carriages and wagons, saddles and harness, merchandise, saloon and office fixtures, watches, clocks, jewelry, musical instruments, household goods, automobiles, and a general class listed as “other property.”
These raises of valuation are from 20 to 100 per cent This evidently presents two fundamental bases upon which the action of the board must have been taken, viz: First,, the board raised the valuation of a particular class of property in a given County, or Counties, to the same valuation at which it was listed for taxation, in some other-given County; second, the board raised the valuation of given classes of property to the same comparative valuation of other classes of property, both in. the same County and elsewhere throughout the State. This must be taken as the true effect of what the board did. For instance, when' they raised the valuation of agricultural lands 20 per cent, in Bernalillo, Chaves, Colfax, Currj’-, Eddy, Luna, Mora, Roosevelt, San Miguel, Santa Fe, and Taos Counties, and failed to raise the valuation of the same classes of property in the Counties of Dona Ana, Grant, Guadalupe, Lincoln, McKinley, Otero, Quay, Rio Arriba, Sandoval, San Juan, Sierra, Socorro, Torrance, Union, and Valencia, it is to be assumed that said raise-in said valuation was to equalize the valuation of said class of property in the Counties first named, with its valuation in the other Counties named. But when the board raised the valuation of carriages and wagons 20 per cent, in every County in tlie State, it necessarily .did so for the purpose of equalizing the valuation of this class of property with the valuation by it put upon agricultural lands, for instance, throughout the State.
We have, then, a case where the board has equalized the valuation of property between classes, and having fixed thereby a comparative standard of valuation, they have attempted to bring up to that same standard all other classes of property in the State. Whether this is exactly the method employed by the board in arriving at this conclusion does not specifically appear in the return, but, at any rate, this is the necessary consequence of what was done.
This state of affairs would seem to present two questions for discussion, viz: (1) Has the State Board of Equalization power to adjust and equalize the valuation of property by classes for the purposes of taxation? (2) If so, and the action results in increasing the total valuation in Counties or in the State at large, is the action justified?
We do not understand counsel on either side of this case to rely upon any of the provisions of legislation prior to the adoption 'of the State Constitution, and the passage of two acts at the session of the State Legislature of 1913.
The pertinent constitutional provisions are as follows:
“Section 1. The rate of taxation shall be equal and uniform upon all subjects of taxation.”
“Sec. 5. A State Board of Equalization is hereby created which shall consist of the Governor, Traveling Auditor, State Auditor, Secretary of State and Attorney General. Until otherwise provided, said board shall have and exercise all the powers now vested in the Territorial Board of Equalization.”
“Sec. 9. All property within the territorial limits of the authority levying the tax, and subject to taxation, shall be taxed therein for State, County, municipal and other purposes: Provided, that the State Board of Equalization shall determine the value of all property of railroad, express, sleeping car, telegraph, telephone and other transportation and transmission companies, used by such 'Companies in the operation of their railroad, express, sleeping car, telegraph, or telephone lines, or other transportation or transmission lines, and shall certify the value thereof as so determined to the County and municipal taxing authorities.” Const., art. 8.
At the session of 1913, the State Legislature passed two .acts, which are chapters 81 and 84 of that session. Section 1 of chapter 81 follows- the constitutional provision heretofore quoted, and confers power upon the state board to fix values upon transportation and transmission companies, and adds banks and trust companies, and live stock. Section 3 of that act directs the state board to fix the valuation of the property mentioned in section 1, a one-third ■of the true value thereof, for taxation purposes. Section 4 of that act expressly confers power upon boards of •County commissioners' to fix values upon all taxable property, exeépt that mentioned in section 1, and is as follows: “The boards of County commissioners of the several Counties shall meet on the second Monday in February of each year and shall proceed in like manner as the State Board of Equalization to ascertain the true value of property of different classes subject to taxation within their respective Counties other than property mentioned in section one hereof, and shall fix a valuation thereof for taxation purposes of thirty-three and- one-third per centum of the true value so ascertained.” Section 5 of that act directs the assessors of the respective Couties to extend upon the tax rolls the values so fixed by said boards and to list all other property, the valuation of which shall not have been specifically fixed by such County boards, at the same proportionate and uniform valuation .■as fixed by said boards upon other property. Section 7 of that act confers upon the State board and County boards the same powers and duties of equalization as formerly possessed under the Territorial and State laws.
Chapter 84, joassed one day later than chapter 81, is a more comprehensive act than the latter, and deals more in detail with the assessment, levy equalization, and collection of taxes. Section 1 of that act repeals most of the previous legislation under the Territorial government. Section 2 of the act reiterates the duty of the assessor to fix the valuation for purposes of taxation in accordance with the standards fixed by the County board. Section 12 of that act provides for an appeal from the action of the assessor to the County board, sitting as a board of equalization, and for an appeal from said County board to the State Board of Equalization for the re-examination and revision of the assessment of any taxpayer. Section 13 of the act confers the powers upon the State Board of Equalization, and is as follows: ‘‘The State Board of Equalization shall at its said meeting on the first Monday in July examine the assessment roll of each County of the State, for the purpose of ascertaining the rate of assessment and valuation of property therein, and the board shall have the power to adjust and equalize the said assessment rolls so that the valuation of property for purposes of taxation shall .be of substantial uniformity throughout the State. Such board at this meeting shall also have power to hear and determine any appeals taken as hereinbefore provided, and any other appeals from the action of any County board, which may be taken by the State, or by any County, or by not less than ten taxpayers of any County, acting through a District Attorney.; and in case of any such appeal the appellant must file with the secretary of said board a complete transcript of the appeal case in time for consideration by said board at said meeting in July.” Section 14 confers the power on the state board to prescribe the form of assessment books. Section 15 requires the assessors to forward one copy of the completed assessment book or roll to the seat of government for examination by the State board. Section 19 requires the State Auditor, at the conclusion by the State board of its duties as to the revision and correction of the assessment books, and the hearing and .determination of appeals, to make the-levy of said taxes and to certify the same to the County boards. Section 20 requires the County boards, as soon as practicable after receiving the Auditor’s certificate, to make all levies of necessary taxes for the ensuing fiscal year, and to certify the same and the rates thereof to the County Assessor.
Before proceeding to an examination of the specific objections urged by petitioners to the action of the State Board of Equalization, a correct interpretation of our taxing laws will be sought, and in that connection certain fundamental considerations may first be mentioned.
It is to be seen, from the foregoing provisions of the Constitution and statutes, that uniformity throughout the State of the burdens of taxation is to be maintained. In fact, it would be an anomaly in America if discrimination in taxation were to be contemplated in Constitution or statute. This consideration, it seems to us, should be constantly borne in mind in determining the true intent and meaning of the legislation involved.
The second consideration, of equal' importance, is the fact that the basis of taxation has been clearly fixed by the statute, viz., the actual value of property. The statute provides that one-third of this actual value shall be taken as the sum upon which the tax of each taxpayer in the State shall be computed. It therefore becomes the duty of each of the three taxing agencies of the State, viz., assessors, board of County commissioners, and the State Board of Equalization, in exercising any of their respective powers, to adhere at all times to this standard of valuation. Any departure therefrom is a violation of the letter and spirit of the taxing laws.
Another consideration, likewise important, is. the fact that the taxing statutes authorize and require the classification ofproperty for the purposes of taxation. The state board is granted the power to prescribe the forms of the tax rolls, which necessarily includes the power to provide that property shall be listed for taxation in such classes as may be prescribed in these forms. The boards of county commissioners are specifically required to meet before the tax lists are actually returned by the taxpayer, and proceed in the same manner as the state board is to proceed, to ascertain the true value of property of different classes subject to taxation, within their respective Counties, and to fix a valuation thereof for taxation purposes. Section 4-, c. 81, Laws of 1913. The assessors are required by section 5 of the same act to extend these valuations on the tax rolls, and to list other property, the value of which has not been so fixed, at the same proportionate valuation. It is therefore clear that the taxation in this State was intended to be by classes of property within Counties, and that valuations for taxation purposes were not otherwise to be ascertained and fixed, at least as to property which by its nature is susceptible of classification.
Another consideration is the fact that the power to-equalize taxation necessarily includes the power to value-property. Taxation consists of three things, viz., assessment, levy, and collection of the tax. Asessment consists-of two things, viz., the listing of the property and the-valuing of the same for taxation purposes. When the valuations are fixed in the first instance by county boards,, on given classes of property, as agricultural or grazing-lands, for instance, it is the exercise of one part of the-assessing power. When the county board sits as a board of equalization, and fixes values, it is still in the exercise of the same assessing power, and when the state board equalizes the valuation of property throughout the State, either by classes or bjr Counties, increasing or decreasing-the said valuation, this same part of the assessing power is necessarily exercised. It is true that boards of equalization, either County or State, ordinarily have no power to perform one of the powers of assessment, namely, the-finding and listing of the property belonging to the individual taxpayer. This part of the power, under our system, devolves upon the assessors or, in some contingencies, upon the collectors. But it is nevertheless true that whenever valuations are fixed by any taxing agency, whether originally or by way of equalization, the other portion of' the assessing power is exercised.
In this connection it is to be observed that there is no-reference in the taxing laws to the question of increase or decrease of the total valuation in the State, by reason of' the action of the state board. Its plain duty is stated to-be to equalize the burdens of taxation throughout the-State, and whether that action results in -increase or decrease of valuations would seem to be entirely immaterial, and to have been so regarded by the legislative department. To hold that the state board has power only to adopt some intermediate standard to which all valuations-must be brought, both from above and below it, is to compel the exercise by the Board of Equalization in a manner contrary to the letter and spirit of the taxing laws.. As before stated, the ba§is of taxation, is actual value of property. To bring the valuations of classes of property in any County, or the total value in said County, which has been properly fixed, down to some intermediate line, to which line valuation in other Counties should be raised, would defeat the expressed object of the taxing laws and. compel the state board to depart from its plain duty in this regard.
If the preceding statement is fully warranted, as we believe it to be, it becomes unnecessary, perhaps, to discuss another important consideration, viz., the rule of interpretation of taxing laws. If the power to equalize includes, without limitations, the power to assess values, then there is no question concerning the application of the so-called strict or liberal rule of interpretation to our taxing statutes. The power is necessarily included under either rule. But if the power- to value property is not necessarily included in the power to equalize valuations, and may or may not be included, according to whether a strict interpretation of the terms used is applied, it then becomes important to determine the true rule of interpretation in such cases.
It is frequently said in the reported cases and by the text-writers that taxes are involuntary contributions, levied by the sovereign upon the citizen for the -support of government, and that laws for such purposes, consequently, should be construed strictly in favor of the taxpayer. This is upon the theory that the taxation, in case the tax is not paid, may result in a forfeiture of the citizen’s property. It is further often said that the legislature is always at. hand to express, in terms requiring no interpretation, its intent as to the extent and manner of .exercise of the-powers of taxation by the several taxing agencies which may be established by law. In this connection it is further sometimes said that the legislature, having plenary power over the subject, will be deemed'to have expressly-refrained from granting powers not specifically enumerated. Therefore it is frequently held that no tax shall be laid, and no power shall be exercised, unless the same-is within the express letter, as well as the spirit of the taxing statutes.
As applied to questions as to whether a tax shall be laid on any given class of property or any given occupation of a citizen, there is reason for the rule of strict construction. The legislature has plenary power, and, if it has declined to speak, it is presumed that it is intended that the tax shall not be laid. But no such proposition is involved in this case. The laws being considered are the general tax laws of the State for raising the necessary revenues to support the state government. Every subject of taxation which was dealt with by the state board was clearly within the letter and spirit of the taxing laws. It taxed no property which was not admittedly subject to taxation. Nor is any question of the visiting of penalties upon the taxpayer involved. In such cases there is clearly reason for strict construction. But this case involves the simple question of the administration of the general taxing laws, to the end that the burdens of taxation may be equally distributed among the people. In such case there is no reason for strict interpretation and narrow and technical definitions of terms. In this connection we cannot do better than to quote somewhat at length from Cooley, the great judge and author, as follows:"'
“The underlying principle of all construction is that the intent of the legislature should be sought- in the words employed to express it, and that when found it should be made to govern, not only in all proceedings which are had under the law, but in all judicial controversies which bring those proceedings under review. Beyond the words employed, if the meaning is plain and intelligible, neither officer nor court is to go in search -of the legislative intent; but the legislature must be'understood to intend what is plainly expressed, and nothing then remains but to give the intent effect. If the words -of the law seem to be of doubtful import, it may then, perhaps, become necessary to look beyond them in order to ascertain what was in the legislative mind at the time the law was enacted; what the circumstances were, under which the action was taken; what evil, if any, was meant to be redressed; what was the leading object of the law; and what the subordinate and relatively unimportant objects.” Cooley on Taxation (3rd ed.) 450. ■
‘‘The question regarding the revenue laws has generally been whether or not they should be construed strictly. To express it in somewhat different language, the -ques-' tion is whether, when a question of doubt arises in the application of a statute to its subject-matter or supposed subject-matter, the doubt is not to be solved in favor of the citizen, rather than in favor of the State upon whose legislation the doubt arises, and whether such solution is not most in accord with the general principles applied in other cases. Strict construction is the general rule in the case of statutes which may divest one of his freehold by proceedings not in the ordinary sense judicial, and to which he is only an enforced party. It is thought to be only reasonable to intend that the legislature, in making provision for such proceedings, would take unusual care to make use of terms which would plainly express its meaning, in order that ministerial officers might not be left in doubt in the exercise of unusual powers, and that the citizen might know exactly what were his duties and liabilities. A strict construction in such cases seems reasonable, because presumptively the legislature has given, in plain terms, all the power it has intended should be exercised. It has been very generally supposed that the like strict construction was reasonable in the case of tax laws.” Id. 453.
“There may and doubtless should be a distinction taken in the construction of those' provisions of revenue laws which point out the subjects to be taxed, and indicate the time, circumstances, and manner of assessment and collection, and those which impose penalties for obstructions .and evasions. There is no reason for peculiar strictness in construing the former. Neither is there reason for liberality. The difference in some cases is exceedingly important. The one method squeezes everything out of the statute which the unyielding words do not perforce retain; the other reaches out by intendment, and brings the statute whatever can fairly be held embraced- in its beneficent purpose. The one narrows the statute as it is studied; the other expands it. Every lawyer knows how much easier it is to find a remedy in a statute than an-offense. There must surely be a just and safe medium between a view of the revenue laws which treats them as-harsh enactments to be circumvented and defeated if possible, and a view under which they acquire an expansive quality in the hands of the court, and may be made to-reach out and bring within their grasp, and under the discipline of their severe provisions, subjects and cases-which it is only conjectured may have been within their intent. Eevenue laws are not to be construed from the-standpoint of the taxpayer alone, nor of. the government alone. Construction is not to assume either that the taxpayer, who raises the legal question of his liability under the -laws, is necessarily seeking to avoid a duty to the-State which protects him, nor, on the other hand, that the government, in demanding its dues, is a tyrant, which, while too powerful to be resisted, may justifiably be obstructed and defeated by any subtle device or ingenious sophism whatsoever. There is no legal presumption either that the citizen will, if possible, evade his duties, or, on the other hand, that the government will exact unjustly or bejmnd its needs. All construction, therefore, which assumes either the one or the other, is likely to be mischievous, and to take one-sided views, not only of the laws, but of personal and official conductt. , The government in its-tax legislation is not assuming a hostile position towards the citizen, but, as we have elsewhere said, is apportioning, for and as the agent of all, a duty among them; and the citizen, it is to be presumed, will perform that duty when it is clearly made known to him,.and when the-time of performance has arrived.” Id. 460, 461.
“If there should be any leaning in such cases, it would seem that it should be in the direction of the presumption that everything is expressed in the tax laws which was intended to be expressed. The laws are framed by the government for its own needs, and, if imperfections are found to exist, the legislature, in the language of Mr. Dwarris, ‘is at hand to explain its own meaning, and to express more clearly what has been obscurely expressed.’ But there can be no propriety in construing such a law either with exceptional strictness amounting to hostility, or with exceptional favor.beyond that accorded to other general laws. It is as unreasonable to sound a charge upon it as •an enemy to individual and popular rights as it is to ■seek for sophistical reasons for grasping and holding by its authority every subject of taxation which the dragnet of the official force has brought within its supposed compass. The construction, without bias or prejudice, should seek the real intent of the law; and, if the leaning is to ■strictness, it is only because it is fairly and justly presumable that the legislature, which was unrestricted in its authority over the subject, has so shaped the law as, without ambiguity or doubt, to bring within it everything it was meant should be embraced.” Id. 463. See, also, ■37 Cyc. 768.
Judge Cooley cites with approval the case of Cornwall v. Todd,
perhaps the only, objection that can be urged against this rule is that w"e cannot say in strictness that the deceased or his estate is a resident of the district. This objection ■assumes that the statute is to be strictly construed. But we do not think that the doctrine of strict construction ■should apply to it. Statutes relating to taxes are not penal statutes, nor are they in derogation of natural rights. Although taxes are regarded by many as burdens, •■and many look upon them even as money arbitrarily and unjustly extorted from them by government, and hence .justify themselves and quiet their consciences in' resorting to questionable means for the purpose of avoiding taxation, yet, in point of fact, no money paid returns so good ■and valuable a consideration as money paid for taxes laid for legitimate purposes. They are just as essential and important as government itself, for without them, in some form, government could not exist. The small pittance we thus pay is the price we pay for the preservation of all our property, and the protection of all our rights. But there is not only a necessity for taxation, but it is eminently just and equitable that it should be as nearly equal as possible. Hence it is the policy of the law to require all property, except such as is specially exempted, to bear its proportion of the public burdens. Not only so, but the law manifestly contemplates that property rated in the list shall be liable for all taxes, toym and school district taxes alike. This is evident from the provision that the district taxes shall be laid on the town list, with special provision for certain changes rendered necessary in order to tax all the real estate situated within the district, and none situated without, and also to assess the tax in each instance upon the right person. In construing statutes relating to taxes, therefore, we ought, where the language will permit, so to construe them as to give effect to the obvious intention and meaning of the legislature, rather than to defeat that intention by a too strict adherence to the letter.” Id. 462.
In Singer Mfg. Co. v. Wright,
In Big Black Creek Improvement Co. v. Commonwealth,
In London & Northwest American Mortg. Co. v. Gibson,
In Salisbury v. Lane,
In Aggers v. People,
In State v. Taylor, 35 N. J. Law, 184, 190, without disclosing in the opinion just what was involved in regard to which the statement was made, the report lays down the rule as follows: “A liberal construction must, therefore, be given to all tax laws for public purposes, not only that the officers of the government may not be hin clered, but also that the rights of all taxpayers may br equally preserved.”
In White v. Walsh,
In Baltimore, C. & A. Ry. Co. v. Com’rs.,
These cases and many others which might be cited, as well as the text of Judge Cooley, would seem to establish clearly the proper rule of construction of taxing statutes, to the effect that a reasonable and fair construction whereby the intent of the legislature is fully carried out should be adopted, and that neither a so-called strict construction nor, perhaps, a liberal construction should be adopoted. As stated by Judge Cooley, it is more properly a middle ground which should be taken, fair alike to the citizen and to the State. Under such a rule, the powers of tlie State Board of Equalization, to adjust and equalize tlie burdens of taxation throughout the State, would seem to authorize-the definition of those terms as including the power to value property, if, indeed, i't .is not necessarily included within those terms.
In view of what has been heretofore stated, there would seem to be no difficulty in concluding that the action of the state board is entirely justifiable in so far as it has dealt with classes of property. Its action is presumed to be intended to equalize the burdens of taxation throughout the State, and all of its acts would seem to fall plainly within the terms of its grant of power.
When the state board took the tax rolls of the several Counties for examination, it found them tó contain a list •of the property of the respective Counties arranged by ■classification, as provided by law. When it raised the valuation of a given class of property in certain Counties and did not raise the valuation of the same class of property in other Counties, it simply equalized the valuations of that class of .property in all the Counties of the State. When the state board raised the valuation of certain classes of property in every County in the State, it simply equalized the valuation of those classes of property with the valuation upon other classes of property throughout the State. In this action the state board was adhering to its plain duty, namely, to value property at one-third of its actual value for taxation purposes. In no instance, so far as appears, did the state board increase the valuation of any class of property in any County beyond one-third of its actual value, or beyond what some one or more classes of property in some one or more Counties had been valued by the County taxing authorities. The •question, then, as to whether the state board has power to revise and correct the tax rolls, as they come up from the yarious Counties, and, as an original proposition, to value all of the property in the “State at what it deems to be one-third of its actual value, is not involved in this ■case. The state board has simply brought up to a standard, which had been fixed by the taxing authorities of •some Counties in the State upon some classes of property, the valuation of all other classes of property in the State-In so doing, it has pursued its power in the only efficient and intelligent manner possible under our law, and has,, it is to be presumed, accomplished the purpose for which-it was created, namely, to equalize the burdens of taxation upon all of the citizens. While it is alleged in the petition for the writ in this case, that the property of the petitioners had already been fully valued, and had been assessed at one-third thereof for taxation purposes,, and that the action of the state board in increasing said valuations resulted in an overvaluation of the property of petitioners, still in this proceeding, as we have before-seen, this fact must be deemed not to be established. The state board are necessarily presumed to have acted upon evidence and to have reached a correct result, and their judgment is not open to review.
A construction fair to the taxpayer, and fair to the-State, .neither unduly strict nor unduly liberal, authorizes-the holding that it was the intention of the legislature that the State Board of Equalization should have the power which it has attempted to exercise, at least in so far as it relates to the increase of valuation óf classes of property throughout the State. As against this conclusion, counsel for petitioners present the following propositions: (1)-The action of the state board is not authorized because it amounts to assessment by increasing the total valuation of property in the State; (2) even if the board has powers-of assessment, the power has been- illegally exercised in-acting upon classes of property. The argument in .support of these propositions proceeds upon several grounds. It is. first argued that the word "equalization” has a well-defined meaning throughout the country, which has necessarily excluded all asserting power. In support of the-argument, several cases are cited.
Poe v. Howell,
In comparison with this language, we again quote the-language from section 13, c. 84, Laws 1913, as follows: “The State Board of Equalization shall at its said meeting on the first Monday in July, examine the assessment roll of each County of the State, for the purpose of ascertaining the rate of assessment and valuation of property therein, and the board shall have the power to adjust and equalize the said assessment rolls so that the valuation of property for purposes of taxation shall be of substantial uniformity throughout the State.”
It may be argued with some force that, under the language of section 2636, C. L. 1897, the territorial board was required to deal with Counties as units, although this was denied by the Territorial Supreme Court, in Territory v. Bank, 10 N. M. 283,
Judge McMillen’s second proposition, that "equalization” has a well-defined meaning throughout the country and necessarily excluded all forms of assessing power, however, is more doubtful.
We have therefore pointed out that to equalize the valuation of one thing, which has been undervalued, with that of another, which has been truly valued, necessarily included a portion of the assessing power. If an increase in total valuations results from the action, it is merely incidental, and, as we have before seen, would seem to be immaterial and to have been so considered by the legislature.
Previously, in August, 1900, the Territorial Supreme Court, in Territory v. Bank, 10 N. M. 283,
In Poe v. Howell, supra, Judge McMillen attempted to distinguish that case from the case of Territory v. Bank, supra, in that in the latter it did not appear that the action of the territorial board resulted in any increase of valuations in the Territory as a whole. In this we think he was,in error, because it appears, at least inferentially, from the statement of the facts in the case, that the action taken must have resulted in increase of valuations.
Poe v. Howell was never appealed, to the Supreme Court of the Territory. Territory v. Bank, 10 N. M. 283,
The holding in Territory v. Bank, 10 N. M. 283,
In Chamberlain v. Walter (C. C.)
In Appeal of McNeal,
Under this statute it was held in Gray v. Stiles,
In Bardrick v. Dillon,
These Oklahoma cases are certainly authority for one phase of our holding in the case at bar, viz., that the result of increase or decrease of total valuations is immaterial in defining the power of the equalization under a statute quite similar to ours.
In State v. Nichols,
In Utah they had a constitutional provision providing for the valuation of property for taxation purposes at its actual value, and for the equalization of values in Counties by county boards and in the State by state boards.
In Salt Lake City v. Armstrong,
In State v. Thomas,
In Arizona the same question has been considered. There they had no statute specifically authorizing equalization by classes of property, but, like ours, their statute required the listing of property by classes. They had no express statutory authority to increase the total valuations within the Territory nor to equalize valuations to actual value. Their statute, while not in the exact terms of ours, gives the territorial board no more or different powers than is possessed by our state boards. The Arizona Court, in Copper Queen M. Co. v. Territorial Board of Equalization,
Counsel for petitioners rely principally upon the' Colorado, Montana, and California cases, aside from Poe v.. Howell, supra. The leading case in Colorado, and a much cited case elsewhere, is People v Lothrop,
They had a constitutional provision in Colorado creating the office of County Assessor. The decision of this case is made to turn largely upon this last mentioned provision of the Constitution. The Court saj^s: “The Constitution provides (section 8, art. 14) for the election in each County, each • alternate jear, of a County Assessor. He is thus a constitutional officer, and, though his duties are left unprescribed, the essential duties of an assessor must be presumed to have been contemplated. Is there not here a plain intention on the part of the people to preserve local control over the valuation of property for purposes of taxation? This local control existed undo the territorial form of government under which they had been living, and is this not an effort to secure it beyond contingency? In view of this provision and of other constitutional limitations, it may be gravely doubted whether it is competent for 'the legislative authority to take from County Assessors the substantial control of valuations of property for State taxation, and vest it in a central authority.”
It thus clearly appears that the Colorado Court believed that all assessing power had been vested in the County Assessors by the Constitution of the State itself, and that therefore the State Board of Equalization could necessarily exercise no such power. The Court further says: “The Assessor is thus made an integral part of the reve? nue system which not only thus specifies and defines his duties, but assigns to other officers and boards equally well-defined and separate duties. The Assessor shall list and value. The board of commissioners shall equalize, adjust, increase and diminish, supply omissions, and correct errors, and hear complaints. The County Clerk shall prepare assessment rolls and compute and extend the tax therein. The State Board of Equalization shall adjust and equalize valuations, and, lastly, the County Treasurer shall collect the tax.”
As before stated, this case is much relied upon throughout the western country. But we must say that in our opinion it is not authority for what it is often cited. The substance and effect of this case is that, by reason of the constiututional provisions of the State, it was not competent for the State legislature to confer the assessing power upon any other person or body than Assessors, as provided for in the Constitution, and that, in view of cueh constitutional provisions, the sections of the statute which were under consideration were given a more limited and restricted interpretation than they would have been given, had they been considered purely as a statute standing alone. The Court also founded its argument somewhat upon the fact that they had a limitation upon the rate of taxation in their Constitution in Colorado, and that, if the power to increase valuations existed in the state board, this limitation might be easily annulled. The Court says: ‘‘Under this construction of the statute the efforts of the people to establish and maintain legitimate restraints on the power to tax will have been unavailing, and the checks, and guards which they have embodied in their Constitution to that end cease to be of practical force or value. The spirit of the law and not ‘the letter which destroys must prevail. We cannot believe that any such grant of power of the State Board of Equalization was within the intent of the legislative authority.” Just how the taxing-power in the hands of the state board is more unsafe than in the hands of the Assessors is not pointed out, nor can we understand.
In People v. Ames,
Thus it clearly appears that the Colorado decisions interpreting, their statute are largely based upon the fact that the three taxing agencies, viz,, Assessors, county boards, and state board, are all constitutional offices or bodies, and have granted to them certain specific powers which prevent the legislature from extending to the state board any part of the assessing power.
The constitutional provisions of Montana are copied from Colorado. Two cases from Montana are cited. State v. Board of Equalization,
In Wells Fargo & Co. v. State Board of Equalization,
In Orr v. State Board of Equalization, 3 Idaho, (Hasb.) 190,
The power of the state boards to equalize the burdens of taxation includes the power to deal with classes of property, unless, by reason of the terms of the taxing statute, or constitutional provisions, the power is restrained. Where'the mode of the exercise of the power of equalization is pointed out in the statute, it must, of course, be followed. Where the mode is not pointed out, any reasonable and efficient mode may be adopted to accomplish the end in view. Unless controlled by statutory terms, the power to equalize includes the power to increase or decrease valuations, and such result is immaterial.
If we are correct in our deductions from the authorities, there would seem to be no difficulty in sustaining the action of the state board, in so far as they dealt with classes or property and increased total valuations in the State. Even if these deductions from the cases are not wholly warranted, we believe the considerations mentioned in the earlier part of this opinion amply justify our conclusions that under our statutes, and considering them as a whole, such action of the state board was justified.
We have a statute covering the matter as follows: “The assessment book, when delivered to the County collector of taxes, properly verified by the affidavit of the County Assessor, and properly certified by the county commissioners, as required by law, shall constitute his authority to collect the taxes therein set forth, and he shall not be held liable for any irregularity or illegality in any of the proceedings prior to his receiving said assessment book; and the amounts to be paid as taxes as shown by said assessment book, shall not be altered, reduced or in any manner changed, except by direction of the District or Supreme Court; but this prohibition shall not extend to the correction of obvious clerical errors in names, description of property, or computation of amount of taxes. If the collector shall discover any errors of other kinds in said assessment book by which any injustice would be done to any taxpayer, it shall be his duty to report the same to the District Attorney, and any taxpayer complaining of any such injustice may submit his complaint to the District Attorney; and if the District Attorney is satisfied that correction or change should be made so as to avoid injustice to the taxpayer, it shall be his duty to submit the matter to the District Court and ask for an order of that court that such change or correction should be made, without cost to the taxpayer injuriously affected.” Chapter 84, par. 23, Laws 1913.
Judge Cooley, in discussing this question, sa}^: “A tax founded on a fraudulent assessment will be enjoined. An assessment is not fraudulent merely because of being excessive, if the assessors have not acted from improper motives ; but if it is purposely made too high through prejudice or reckless disregard to duty in opposition to what must necessarily be the judgment of all competent persons, or through the adoption of a rule which is designed to operate unequally upon-a class and to violate the constitutional rule of uniformity, the case is a plain one for the equitable remedy of injunction."
It is not our purpose to discuss critically or in detail' in this case the remedies of taxpayers against unequal or-excessive assessments, because the question is not involved and cannot be decided. What has been said is for the purpose of demonstrating that the argument offered against the action of the state board is not well founded.
Counsel for petitioners argue further that ever since the-decision of Poe v. Howell, supra, neither the Territorial Board of Equalization nor the state board has assumed to. exercise power of equalization by classes of property, nor to increase total valuation, until the action of the present state board was had. A sufficient answer to the argument may be pointed out in the fact that the legislation, as we have before seen, under which the present state board took its action, is entirely different in terms and effect from that heretofore existing. It does not follow that even assuming Poe v. Howell to have been properly decided under the statute then existing, the state board has .not now the authority exercised under the present legislation.
Counsel further argue that at the time of the decision of Poe v. Howell and Territory v. Bank, supra, county boards had no power to fix valuations by classes, and that, now, under the present legislation, they have such power. Therefore it is argued, even if Territory v. Bank were correctly decided, that now, under the present legislation, the county commissioners having the power expressly granted to them, the power in their hands is exclusive as. against the state board.
A comparison of the two sections of the statute upon which argument is founded, and which heretofore have-been set out, shows clearly that the argument is unsound. It is true, that county boards are required to fix valuations by classes. But it is likewise true that the state-board are authorized and required to examine these valuations as they appear upon the assessment rolls, and to adjust and equalize the.valuations therein shown, so that the valuation of property for purposes of taxation shall be of substantial uniformity throughout the State. This power to adjust and equalize these valuations necessarily includes, we think, the power to deal with the valuations as they appear in classes on the tax rolls.
There remains, however, another proposition which involves one phase of the action taken by the state board, which would seem to be of doubtful authority. It appears that the board made certain exemptions of individuals from the effect of the various raises of valuations in the several Counties, upon one or more classes of property. For instance, in Santa Fe County, some 29 persons , were exempted from the order of the board raising the valuatioon of city lots, in the city of Santa Fe.
In almost every County in the State certain named persons were exempted from the order raising the values on stocks of merchandise, and in 12 of the Counties certain named persons were assessed by the board on stocks of ’merchandise at various amounts. In one of the Counties ■a large number of persons and corporations had returned various areas of land as grazing land at $1.80 per acre, >and the state board made an order changing the classification of these lands from grazing lands to coal lands, and fixed the valuation thereof at $12 per acre. This action was clearly in the nature of original assessment of property.
As before stated, the action of the state board in making -original assessments of individuals and exempting •others from general orders affecting classes of property would seem to be questionable. The power to deal with individuals would seem to be conferred exclusively on the County taxing officers by the various provisions of the statute, except in cases of direct appeal to the state board. But we' cannot decide this question because it is not involved. We simply decide that petitioners are not in a position to raise the question.
There is no error in the action of the State Board of Equalization of which the petitioners can complain in this-proceeding, and, for the reasons stated herein, the petition and writ of certiorari will be dismissed, and it is so ordered.