| Show SCHOOL TAX LAW IS INVALID the supreme court handed down an monday in the case of mercur gold mining and milling company vs william spry collector for tooele thoele county and tooele thoele county appellants affirming the judgment of the court below this case was an appeal from the judgment and decree rendered by judge cherry at tooele thoele declaring axing null and void a certain tax sale made of respondents mining claim assessed and levied for the taxes of 1896 upon the net proceeds of its mines for that year the findings showed that the assessor of tooele thoele failed to list or assess the net proceeds of respondents mine in the manner provided for the assessment of other property but in june 1896 he assessed the net annual proceeds of the mine for 1896 at upon the basis of the net annual proceeds of the mine between june 1 I 1895 and june 1 1896 there were carried upon books of the county as state tax of 5 mills a state school tax of 3 mills a county tax of 5 mills a school tax of 2 mills and a special specia I 1 school tax of 12 mills on the dollar tor for the dis this made a total tax levy against the mercur gold mining and milling company of 27 mills on the assessment of the entire net proceeds of the mine between the 1st ast of june 1895 and the ath of january 1896 were between the ath of january 1896 and the ath of april 1396 they were and between the ath of april and the 1st ast of june of the same year they wei were e 32 these facts appeared upon the books of the company and were abess able at all times to the assessor when the mercur company of the assessment which was not until I 1 october 1896 it immediately applied to have the assessment contested but the county commissioners of tooele thoele county refused the request the mercur company paid its taxes on a valuation of of net proceeds prot 1750 aria and refused to pay the t h e balance of injunction proceedings were commenced to prevent a collection of the balance tor for the reasons stated which judge cherry granted holding that the facts set out in the complaint presented an unusual case and that the remedy provided against illegal taxes was inadequate As conclusions of law judge cherry found f that section 4 of article 13 of the state constitution was not self executing and was not in force until april ath 1896 that the law imposing taxes upon the net annual proceeds of the mine was a new burden and should be construed as prospective that the special school tax of mercur district was void and that the payment by the mercur company of 1750 was in accordance with justice and the taxes in excess of that was void this opinion was delivered at the trial of the cause from which an appeal was taken the questions for determination by the supreme court were first for what period of time and to what extent was the mercur company liable for taxes upon the net annual proceeds of its mines for the year 1896 under the state constitution and laws in force at that time and second was the special school tax in the mer our district for 1896 a legal building tax for which the mercur company was waa liable and was the remedy selected and asked for the proper one in such a case justice miner who delivered the opinion finds that state constitution constitute ion came into existence and was of binding and of force and effect on and after the ath day of january 1896 and that all territorial laws up to that time 1 not repugnant to the constitution rei bained in force until they expired r by their own limitation or were e elp altered te or i repealed by the legislature d at the time the constitution became operative the court says there existed I 1 no territorial law providing of the taxa a tion of mines or their net aniual pro i ceede subdivision sub division 11 of section 2009 compiled laws of utah 1888 the court finds aas was in force when the constitution was adopted which expressly pro vides aldes that mining claims and the products of mines and the ore in mines were exempt from taxation the ten mill school tax as voted by the trustees of the mercur school district without the vote of the taxpayers the court finds was in direct violation of law and without jurisdiction and consequently illegal and void the court further finds that all the taxes upon the net annual product of the mercur companas comp anys mine for 1896 1894 had been paid before the commencement of the action and that taxes upon t the product of the mine from june 1 1 1896 to june 1 1897 would be assessable and collectable in 1897 the court then declares the special school tax illegal as also that levied upon the mine from june to dec 31 1896 because at the time of the thal latter assessment there were no net proceeds of the mine for that of time known ascertainable or in existence and no assessment could legally be made thereon finding no error in the record the court then affirms the judgment anaf decree of the lower court chief justice zane and justice bartch concur |
