95 So. 451 | Ala. | 1923
Lead Opinion
The act "to provide for the general revenue of the state of Alabama," approved September 15, 1919 (Gen. Acts, pp. 282-451), declares (section 2) that all solvent credits shall be exempt from ad valorem taxation. Defining the subjects of taxation, "except as exempted by existing laws," subdivision "d" of section 5 of the act says:
"All stocks of goods, wares and merchandise, the assessment to be on the average amount on hand during the preceding year, but the amount so assessed shall in no case be less than the capital actually employed in the business. * * * "
The Seals Piano Company is a partnership engaged in the business of selling musical instruments and owned at the time of the assessment in question bills receivable in the shape of lease-sale contracts, assessed at a large cash value, which was considered by the board of adjusters in fixing the value of the stock of merchandise for taxation. In the circuit court on appeal it was considered that the board of adjusters was in error in so estimating the assessable value of the company's stock of goods, and from the judgment rendered in accordance with that view the state has appealed.
The paramount purpose is to ascertain the legislative intent and to that end certain *94
elementary rules of construction are to be consulted: A taxing statute is to be strictly construed against the taxing power (State v. Roden Coal Co.,
This court has held that, in general, the conditional vendor's interest in property sold is a special property, which, if not exempted by law, is taxable at the value of the purchase-money debt regarded as a solvent credit (State v. White Furniture Co.,
Reversed and remanded.
ANDERSON, C. J., and SOMERVILLE, GARDNER, THOMAS, and MILLER, JJ., concur.
McCLELLAN, J., concurs specially.
Concurrence Opinion
The record here is quite meager. It appears, however, that the assessment in question is of the stock of goods, wares, and merchandise under subdivision "d" of section 5 of the Revenue Act of 1919 (Gen. Acts 1919, p. 285), reproduced in the opinion ante. The circuit court, trying the cause de novo on appeal, declared in its judgment "that bills receivable are not to be considered in fixing the value of the stock of merchandise"; so upon the theory, evidently, that, since "solvent credits" (represented by the bills receivable described in this record) were exempt from ad valorem taxation by section 2 of the Revenue Act of 1919, recourse to such "bills receivable" could not be had in order to ascertain the minimum valuation for assessment of the stock of goods, etc., which subdivision "d," noted ante. prescribes should not be "less than the capital employed in the business." This proceeding — to assess the stock of goods, wares, and merchandise in a value not less than the capital actually employed — does not intend or effect the assessment for taxation of exempt "solvent credits." "Bills receivable," as described in this record, may be accepted as within the category of exempt "solvent credits"; but that concession does not conclude to the denial of the service such "bills receivable" may afford, as evidence only, to determine the elements or items of stock of goods, wares, and merchandise subject to assessment and taxation, nor forbid the consideration of such "bills receivable," as evidence only, in ascertaining and determining this subordinate inquiry of fact, viz. whether the value of the stock of goods, wares, and merchandise is "not less than the capital actually *95
employed in the business." Definitions of "capital actually employed" in a business are readily accessible; some of them being noted on the brief for appellee. See, also, Bailey v. Clark, 21 Wall. 284,