75 N.J.L. 788 | N.J. | 1908
The opinion of the court was delivered by
The writ of error in this case brings up for review a judgment of the Supreme Court affirming a tax assessed upon property of the plaintiffs in error by the state board of assessors, under the provisions of the act for the taxation of railroad and canal property (originally enacted in the year 1884), as amended by the supplements of April 5th and April 18th, 1906. Pcamph. L., pp. 131, 330.
The validity of the assessment was attacked in the Supreme Court, and is challenged here, upon the ground that the Tax act of 1884, as amended by the supplements just referred to> violates both the provision of our state constitution, which requires property to be assessed for taxation under general laws, and by uniform rules, according to its true value, and also the provision of the federal constitution, which prohibits
In an opinion delivered by us at the present term, in the case of the United New Jersey Railroad and Canal Co. et al. v. Parker, Collector, the changes wrought by the supplements of April 5th and April 18th, 1906, in the original act of 1884 were fully considered, and the conclusion expressed that those changes did not, when engrafted upon the original act, render the legislative scheme obnoxious either to the state or to the federal constitution. The validity of the mode of taxation thus provided must, for the reasons stated in that opinion, be accepted as established. The only matter which now requires consideration, therefore, is the effect of the irrepealable contract of the plaintiffs in error upon the tax in question.
The various acts of the legislature which culminated in the contract upon which the plaintiffs in error rely are fully set out in the opinion of the Supreme Court, and a recital of them now is unnecessary, a reference to the opinion of the lower court being all that is required for information upon the subject. By such reference it will appear that at the time of the meeting of the state legislature in the year 1869 the several railroad and canal companies which were subsequently consolidated into the United New Jersey Railroad and Canal Company had contracts with the state under which they were paying into the state treasury annually a certain sum for each passenger and each ton of freight carried by them, in lieu of all other taxes or imposts. On the 4th of March of that year an act was passed entitled “An act relative to transit duties” (.Pampli. L. 1869, p. 226), which provided (1) that from and after the passage of the act all transit duties, whether on passengers or freight, should be abolished; (2) that all companies theretofore paying transit duties to the state should
The effect of this statute and its acceptance by the companies was to supersede all pre-existing contracts between them and the state upon the subject of taxation, and to substitute a new contract in the place thereof, and it is this new contract which the plaintiffs in error contend exempts them from taxation under the act of 1884 and its supplements.
In the year 1872 the act which consolidated these , companies into the United New Jersey Bailroad and Canal Company was passed, by the terms of which the consolidated
It is manifest, we think, that the expression “state tax” was used in the contract for the purpose of excluding the idea that the legislature should thereafter have the power to subject the property of the contracting companies to taxation by the local boards of the various taxing districts in which it should be found. Bearing this in mind, the solution of the question is not difficult. By the terms of the act of 1884 the tax provided for thereby is assessed by a state board; it is payable into the state treasury; if unpaid after the due day it becomes a debt due from the company to the state, and is made a lien upon all the lands and tangible property and franchises of the company in the state, and an action at law or in equity is given to the state for its collection. Gen. Stat., p. 3327, §§ 9, 10. That such a tax is not a local tax needs no demonstration, and if not a local tax it must necessarily be a state tax.
But it is argued that the language of the contract of 1869 shows that the state tax contemplated by it was a tax the proceeds of which should be used solely for the purpose of carrying on the state government and maintaining state institutions, and it is said that the tax provided for by the act of 1884 is not such a tax, for the reason that it is to be used only in part for such purposes, a considerable portion of it being required to be paid by the fiscal officers of the state to the various taxing districts in which the real estate of the several railroad' and canal companies, other than “main stem,” is located, to be used by such taxing districts for local purposes. Gen. Stat., p. 3334, § 11. We find nothing in the language of the contract of 1869 which shows an intent to limit the state in the disposition of the moneys raised by it by the taxation of railroad and canal property. Eor more than a half century before the making of this contract it had been, and has ever since continued to be, the practice of the state to distribute among its various municipalities each year a con
We conclude, therefore, that the United New Jersey Railroad and Canal Company and its lessee, the Pennsylvania Railroad Company, were, by the express terms of the contract which they invoke, taxable under the Railroad 'Tax act of 1884.
The engrafting upon that act of the supplements of April 5th and April 18th, 1906, as we have already decided in United New Jersey Railroad wnd Canal Co. v. Parker, Collector, supra, did not change its character. It still remains a general law, imposing a uniform state tax equally applicable to all railroad and canal corporations of the state, and so long as it retains those characteristics the plaintiffs in error are taxable under it.
The judgment under review will be affirmed.
For affirmance — Magie, Chancellor, The Chiee Justice, Garrison, Swayze, Trenci-iard, Parker, Bergen, Bogert, Vredenburgh, Vroom, Gray, Dill, J. J. 12.
For reversal — None.