129 Minn. 30 | Minn. | 1915
The state seeks to enforce the collection of taxes due from the defendant as a freight line company under chapter 250, p. 339, Laws of 1907, and amendatory acts. The taxes involved are for the years 1907 up to and including 1912. The state prevailed and defendant appeals.
The facts are stipulated. If defendant during the years mentioned
Chapter 250, p. 339, Laws of 1907, is “an act to provide for the taxation of freight line companies.” Such companies are defined thus by section 1: “That any person or persons, joint stock association or corporation, wherever organized or incorporated, engaged in the business of operating cars, not otherwise listed for taxation in Minnesota for the transportation of freight (whether such freight be owned by such company or any other person or company), over any railway line or lines, in whole or in part, within this state, such line or lines not being owned, leased or operated by such company, whether such cars be termed box, flat, coal, ore, tank, stock, gondola, furniture or refrigerator car, or by some other name, shall be deemed a freight line company.” The other sections of the chapter relate to the imposition and enforcement of a tax upon the gross
Concededly the gross-earnings tax is based upon the right to tax the property out of which the earnings are derived. It is a practical method adopted to reach the property for taxing purposes. Corporations engaged in the transportation business have plants or systems combining tangible and intangible property. The business of common carriers considered as a whole, and embracing rights, franchises, ■equipment and property of every nature, may be taxed as such. Adams Express Co. v. Ohio State Auditor, 17 Sup. Ct. 305, 41 L. ed. 683, 165 U. S. 194. And no doubt this state may now classify for taxation purposes property devoted to transportation by shippers having so extensive shipments of their products that it is deemed .necessary to have a transportation business'of their own. We cannot ;say that it is the same property on which the railroad companies paid the full taxes. We think the state may tax upon the gross-earnings basis both the railroad companies upon its property as a whole .and the freight line companies upon the cars devoted to its transportation business. This is countenanced by the decision in State v. Minnesota & International Ry. Co. 106 Minn. 176, 118 N. W. 679, 1007, 16 Ann. Cas. 426. There can be no claim of attempted double
The contention that the tax demanded is not a fair equivalent of a tax upon the cars or property itself, does not appear to have sufficient merit to require discussion; and the proposition that the tax is an unlawful burden on interstate commerce is answered by State v. United States Express Co. 114 Minn. 346, 131 N. W. 489, 37 L.R.A. (N.S.) 1127, affirmed in 223 U. S. 335, 32 Sup. Ct. 211, 56 L. ed. 459.
The judgment must be affirmed.