'AltH.] CASH. V. ST. LOUIS SOUTHWESTERN RIC: - CO. • 859
CASH V. : S. LOUIS , SOUTHWESTEiN RAILW/Or COMPANY. Opinien delivered lcieVeniber 16, 1925. , • 1. .TAxATION—uNxpoRm . y A.LuA poN. updpr. the Constitutfon :; all property must be taxed according to its value, to be ,ascertained as the General Assemblr shall direa, making , the same equal and uniform throughout the State. 2. T A XATION L -EXTECT OF ir.T.FRAL ASSESSmENT. TaxpaYers f are not bound by an illegal assessment, though it relieves them from part of the assessment . which would otherwise' be imposed. TAXATION—ASSESSMENT AT FELL VALUATION FOR COUNTy P.9.PosES. —Where the TaX COriimission, complying with an' order of a federal i conrt; .directed the county nuthorities,;to : multiply . by two the, taxes already, extended .against the, property of a railrcra,d company for county purposes only, whicb order „ was complied with, this amounted in effect to' An assesainent by'the Tax . Coni-mission 'Of 'the railroad compAny's : propertk ifs full vUlue 'for county purposes onlY, and violated; the uniformity clanse (art.!16, § 5) of the Constitution. . Appeal from Cleveland Chancery Court; :John, M. Elliott, Chancellor ; • affirmed.' STATEMENT OF FACTS. On August 31, 1922, the St. Louis Southwestern Rail-'way Company : brought suit . in the' Cleveland Chancery 'Court against-J. E. SMith, as sheriff and-collector, to enjiain what is 'alleged to be an illegal assessment of taxes for county general purposes for the' Year 1921. • . On May . 25, 1923, a similar ,suit was ;filed by . the railway company against Dave- Cash, as: sheriff and :collector ' of Cleveland County. By 'agreement both Cases ,vg.ere consolidated for trial, and, Dave Cash. having 'succeeded J. E:, Smith as sheriff and collector ef Cleveland- County, his name was:substituted for the name of J. E.-Smith as defendant .in -the 'first suit: • • The: record 'shows that the assessments . of! , the . St. Louis Southwestern Railway Cempany; and • the-other 'railway companies in the State of 'Arkansas, were made by the Arkansas TaxCommissien at a 'basis' of 50 . per cent. of the, actual value of 'their property for the years 1921 and 1922.. The pertion of the taxes due each . county
, 860 CASH V. ST. LOUIS SOUTHWESTERN Ry. CO: [169 through which the St. Louis Southwestern Railway Company runs was certified to the various county collectors of said counties. The tecord show's the assessment as ; appointed and certified for CleVeland County on the property 'of the St. Louis Southwestern Railway Company for the years 1921 and 1922. On September' 9, 1922, the Arkansas Tax Commission sent , a letter, signed by its chairman and seeretary, to the tax aisessor and to: the circuit and county Clerk of Cleyeland CountY, which reads as follO•ws "In , obedience to' a judgment 'of : the United States Court you are ', hereby , ordered 'to Multiply by two, for cOnntY purpOse.s Oi4, all ag seSsments ."Of , PropeitY,made by this comiaission and certified to the tax assessor of Cleveland-County for the year 1922." A similar letter was sent to them: with regard to the .taxes for the year:1921, which Was' by , some means lost, and its contents was proved by the countY clerk 'of , Cleve-land County. In obedience to the letter, of the , Arkansas, Tax Commission,:the asses'Sment of-the railroad' property for said •years was anade ont :and certified on the tax books at double the amounts as shown by the retutns of. the Arkan-sas Tax Commission.: The record also shows that the Federal District Court at-Litt]e Rock, on APril 4, : 1921, rendeted a judgment requiring the assessment : of property in Cleveland 'Countyf or county general pini3 ose g at 100 Percent. of its value, and' that this order was duly ',served upon the Arkansas Tax Commission and -the county judge of Cleve-land County, Arkansas. Acting under this judgment of the Federal Court, the Arkansas Tax' Commission wrote -the county clerk and the assessor of Cleveland County a letter directing theni to :multiply the taxes as returned against : the property of the . St. Louis SOuthwestern Rail - way Company by two and extend the value upon the assessment books for county general . purposes. •
ARk.] CASH 't.) ST. LOUIS SOUTHWESTER:1 % 1 B y. CO: • 8.61 ". The 'record also . shows that on, the .21st day of Aptil, 1921, -the judge of the.Federal . Court set asideSaid • man-datorr order 'a.t the instance, of j II. Meek, • who -hex' become the . 'owner of the • .judgment againit, Cleveland County under which the original . Ord'er had , been made. The railroad company paid the countY taxes extended against its property for 'the yearS '1921 •and . 1922; based upon the 50 . per . cent.. valuation ; assessments, and also paid ,all the other taXes . olue by it in .said ,county for said . ...It was decreed b y the . chancery. court that the. sheriff and collector , of dleveland County be perpetually enjoined from 'collecting ta*eS' .. against 'Said defendant .for the yearS . 1921 'and '1922 -fOr ' cOnnty'general . PurPOses. for mor& than 50 per , cent:'bt -the-liT abie Of , ..the in•OpeitY said railway coniPanY . als" sholtri lay -the 'original The ease 'is 'here on pL' D. A. Bradhqm r for , appellant. , . . ..•. R: A. H. Kis 7 . . iad4o n . ;'W:" 17..W6.oldridge and H.' T.WOoldride, for , app • ellee . . HART, .J. (after stating the facts). T • h e judgpex4.of the chancery court wa;s ' , COrreC-t.' At the ontSet it May be stated that the act of the'coanty . antliorities in . donbling the asseSsed value of • the PrOperty of the railroad 'corn-Pany -for cOu r ity pnrp6 ges -under . the 'cireuraStanCeS a' mere clerical 'act, arid that the:real raising 'al-the' faxeS -Was-dorie . hy* the AtkAnsas:Tax CointhisSithu, 'The'reCo'rd 'Shol,7 , s' that the Arkalisas , TaX had the property 'aSSeSsed • , of the railroad 'conipaily 'On ' "Wis • e per l . f '50 cent, of its value, -juit It' had aSsessed thevalue of all other railroads in Arkansas. 'Under 'the'jtidgrneiit of the federal 'court, it was' ordered la-assess the''Property . of the defendant railway cOmpany .. iii OloVeland County for county purpoSes -only at its' full vallie. : Hence the direction . of . the Arkansas Tax dOrimiission- to tile local -authorities to . multiply the . taxes . aS 'already . e-x-tended against' the property of the railway cbinpany'.and the complianCe with the order "by the local authorities
862 . 'CASH , V. ST.. LOUIS . SOUTHWESTERN "RIC. Co: [169 amounts in:fact to , an: 'assessment by the' 'Arkansas . Tax Commission :cd- the property Of the- railway ,cOmPany its full value f Or. &minty . purpoSes Only. This : action: was in direct, violation of the • PrinCiples -;of . law • decided.•iii Hays v. Missouri Pacific Railroad'Co:;•150 ! Ark.- 101, and State' ex ,rel.: Craighead Cbtunty LouiS-San:• Fran-cisco Railwdy.Co.,-162 Ark. 443. • •In those cases it •-w4s held that . Undee our COnstitn: tion r■ro l ierWAall be taied 'acCording to its value te be ascertained as the G-eneral Assembly shall direct, thak-mg the Sarno' 'equal an . d • u • niform • t , h • r • o :" U ghoUt . • t • h .•. e ,,• • ' gtate. • Tn. , the . -case last; cited. it was expressly „held that .a .judgment of 'a' federal.. court .direPting an .assessment, o • f . • .all property in a . pounty. at its full yaluation.contenaplates an ssesplent ,f or all, purpos . es ,..and, that _an . assessment of property' at its full valuation forcounty purposes. only is invalid. ;, •!i .. • • In that . case !the . court further held, that taxpayers are not bound by an illegal assessment, though the effeet is merely , to relieve • the m from , . part of . the 'assessment Which. otherwise WOuld be iMPOsed. • • • ,. • • the casc,at bar the letter of the , Arkansas Tax Commission.,shows,on its face that , the judgment of the federal court,directe , d jt to„assess.for county purposes . only , all assessments, of property made . bY ;it in ,Cleveland County for the:year. 1922, and it . undertook to .raisc.the ..as5es,sment .in compliance with . .the order. , of the, federal. ,coUrt, f or. county .purposes As.. we haye just, ;seen, this ,violated the : uniformity clause of our Constitution and rendered the tax to that7extent void.: , • The order •by the-Arkansas Tax CommissiOn to the. : county asseSsing authorities Of • Cleveland • Couhty for . the year 1921.was: lost,•but the , oral proof .shows that it was .the same .As that for the year 1922.' Hence thc raise, , having been-made for county purposes only, was illegal and -void .as being in' violation of the uniformity clause' of our Constitution with regard to taxation; and for . !that reason
the:chancery court also properly,enjoined the sheriff and collector from collecting the excess Itaies for that Year. . It is also sought to uphold the deeree under the judgment of the•federal court of March 28, 1923,; which set-aside .and . revoked the mandamus 'issued. on the .21st day.of April, 1921. This order was made by. the , federal court:upon the !application of J. H. Meek, who had become. the owner ;of the judgment against Cleveland County for the collection; of which the mandamus was...issted in' the. firstdplace.. This Order 'shows on 'its face that itis only intended to operate prospectively' . and has nO : bearing \i'r hat ev er on the proceedings in this case which had been had . before the date of the order revOking the Mandamus:. Theresult of our views is that thedecree of the chancery court was correct in each case, and it will therefore be affirmed,. •
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.