39 Minn. 502 | Minn. | 1888
Lead Opinion
Citation issued by the district court for Hennepin county, addressed to A. T. Eand, L. S. Eand, Eufus E. Eand, and Kate Eand, requiring them to show cause why they should not pay certain taxes assessed against them for the year 1886, but remaining wholly unpaid. The citation was not served upon A. T. and L. S. Eand. Eufus E. and Kate Eand answered, alleging — First. That each had duly returned for assessment a list of personal property; that each had been duly taxed therefor, and had paid the amount of said taxes as by law required. Second. That the tax claimed in the citation had been unlawfully assessed against defendants, on account of certain facts quite fully set forth, but which may be stated briefly as follows: The four persons named in the citation were the heira-at-law of one Mary C. Eand,. deceased, whose _e_state was., being'probated in said Hennepin county, and who died seized of certain real property in said county; that as such heirs the defendants, on February 13, 1886, entered into a written contract, (a copy of which was made a part of the answer,) whereby they sold, and upon payment of the purchase price agreed to convey, to the “Minneapolis Club,” a corporation, the real property before mentioned, and that the tax referred to in the citation was that improperly assessed against said heirs, for and on account of the said contract with the club, as a credit belonging to said defendant heirs upon which they should pay taxes. From an inspection of the contract of sale it appears that it is in the common form, the defendant heirs giving immediate possession, and agreeing to convey by warranty deed upon being paid $2,500 cash in hand, which was acknowledged, $2,500, May 1,1886, (which had been paid when the assessment was made,) and $5,000, May 1, 1887. The purchaser covenanted and agreed to make the above-mentioned payments, and the further sum of $40,000, on or before May 1, 1897, with interest at 6 per cent., payable semi-annually; to pay all assessments and taxes which might be levied or imposed upon
The next question is whether the item listed by the assessor upon his own motion is a credit within the meaning of the constitution and the tax laws of this state. Section 3, art. 9, of the constitution provides that “laws shall be passed taxing all moneys, credits, investments in bonds,” etc. In obedience to this constitutional mandate the legislature has provided, through section 3 and the 23d subdivision of section 16, chapter 11, aforesaid, for the listing and assessment of that class of personalty ordinarily denominated as “credits.” If this be one, it is taxable, and those to whom it is payable must bear the burden which the framers of the constitution declared should be laid upon its species. The objections to this manner of creating revenue have often been stated by political economists, but no one now questions the abstract right of the people to exact, through their properly constituted representatives, tribute in this form for governmental purposes. The right so to do is not disputed here, but it is contended that the amount due appellants upon the contract of sale is not a credit; that the contract is wholly conditional, differing from the absolute obligation to pay evidenced by note; that it cannot be sold or assigned, and could not be collected except upon tender of a willingness, coupled with an ability, to convey; and that it is not certain, as no decree of distribution of the estate has been made, that they ever will be seized of the property mentioned in their contract, and thus able to perform. They sum up the many objections by asserting that, as they have no more property than was theirs the day before the contract was made, it results in double taxation. By means of section 4, chapter 11, supra, we are informed that “ the term ‘credits,’ wherever used in this act, shall be held to mean and include every claim and demand for money or other valuable thing, and every an
In the case at bar it will be observed that no notes were executed by the purchaser, nor did the vendors enter into a bond for a deed. The contract contains the bargain; the corporation covenanting absolutely, in words, upon its part to pay upon days certain, and the vendors in equally as formal and binding a manner agreeing to convey the premises upon receiving a part only of the purchase price. There were but two things which could possibly prevent the vendors from receiving their money: First, their own inability to give a perfect title to the premises; and, second, the insolvency of the vendee;
But the appellants insist that by this means they are doubly taxed: first, upon the realty mentioned in the contract; and again upon the sum of money therein promised by the Minneapolis Club. The field for discussion which may be gone into when duplicate taxation is claimed, is great, for it has been the subject of much contention among the political economists, as well as in the courts. The views of the latter have been quite uniform, and it will serve our purpose to call attention to Lamar v. Palmer, 18 Fla. 147; State v. Carson Savings Bank, 17 Nev. 146; Toll Bridge Co. v. Osborn, 35 Conn. 7; State v. Collectors, 25 N. J. Law, 315; Buchanan v. County Com’rs, 47
Recurring now to appellants’ claim of duplicate taxation, it is stated in Cooley, Tax’n, (2d Ed.) 220: “There is also sometimes what seems to be a double taxation of the same property to two individuals, as where the purchaser of property on credit is taxed on its full value, while the seller is taxed to the same amount on the debt.” While the learned writer seems to deplore the law which permits such unequal results, he admits that such taxation is not invalid; but there is a sense, he says, (page 225,) in which duplicate taxation may be understood “which would render it wholly inadmissible under any constitution requiring equality and uniformity in taxation. By duplicate taxation in this sense is understood the requirement that one person or any one subject of taxation shall directly contribute twice to the same burden, while other subjects of taxation belonging to the
But an objection is made to the judgment, (which is against the appellants alone, for the full amount of the tax levied on a credit owned by four persons,) which seems to us insurmountable, although respondent claims such a judgment to be warranted, upon the authority of Meyer v. County of Dubuque, supra. The case cited does not go to the extent claimed, for the assessment and proceedings were all against one person; no part thereof was against others, as in this case. We are not advised as to the maimer pointed out by the Iowa statute for listing personal property held in common, as was the credit now being considered. In Minnesota there is no method of listing in such cases expressly provided, but for many reasons each owner should list and return his share or interest of such a credit for taxation, and, if he fails so to do, the assessor may
Concurrence Opinion
I concur in the result reached, but dissent from so much of the opinion as holds that the contract by the Eands to convey, and of the club to pay or secure the price upon such conveyance, while it remained executory, constituted a credit, within the meaning of the statute requiring credits to be listed or assessed for taxation.