The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-04-30

ion-an able one-in the case OF William
son UerSuS Massey, i'm which it was decided
tbat the McCulloch bonds are exempt from
taxation, and the capitation tax and the
property tax gong TO the public schools
can be paid In coupons.
The opinion Is as follows:
William Williamson Us. John Z, Massey
auditor.
BY the act ofthc General Assembly Of vfr.
ginia TO provide a plan OF settlement OF the
public debt, approved March 2S, 1879, il was
enacted: Section ]. "That TO provide for
funding the debt OF the State the Governor
is hereby authorized 70 create bonds OF the
State. registered and coupons, dated the 1st
day OF January, 1879. the principal payable
forty years thereafter, bearing interest at
the rate OF per cent. per annum for ten
years, and at The rate OF 1 per ctntum per
annum for twenty years, and at the rate of j
per cenium per annum for ten wears, pay
able in the cities OF Richmond, New York,
or London, as hereinafter provided, on the
1st days CT July and January OF each year,
until the principal is redeemed.' The
coupons on said bonds shall be receivable at
and after maturity for all taxes, debts, dues,
and demands due the State, and this shall
any registered bond shall be entitled TO re-
ceive from the Treasurer Of the State cer-
ti6cate for any interest thereon due and un-
paid, and such certificate shall be receivable
for all taxes, dues, and demands due the
State, and this shall be expressed on the
face of the registered bonds and on the face
of such certificate. al obligations created
under this act stall be foTeuer exempt from
all taxation, direct or Indirect, by the State,
or by any county or corporation therein,
and this shall be expressed on the face OF
the bonds" "The bonds hereby authorized
shall be issued only in exchange for the
outstanding debt Of the State, as helelnaf-
ter provided" Bonds were issued under
this act and in conformity with its require
ments.
THE AUDITOR, IL HIS ANSWER
to plaintiffs petition. admits that the said
William Williamson is Indebted TO the State
of Virginia for taxes for the year 1878. as
follows: For capitation tax, the sum OF 81,
and for tax on property the sum OF $40
amounting, with interest, TO SIP, as shown
by the tax bin flied with the petition; and
that the said petitioner was returned delin-
quent for the non-payment OF said taxes on
the --- day Of -, 1878. And he also adj
mits that TIE said William Williamson ten
Gered to him rs Auditor aforesaid, on the
10th day OF April, 1880. SC in coupons past
due. taken from bonds issued under the act
of 2Sth OF March, 1870, aforesaid. and SLIP
in money, in full payment Of the taxes
aforesaid, and demanded Of him a receipt
for the same, and that he refused to re-
ccive and receipt for the said coupons and
money in full discharge Of said taxes. Aud
he assigns the following reasons for his re-
iusal:
First. Because under the law of the
State the bonds from which said coupons
were taken are liable TO taxation under the
laws and Constitution Of the State, and this
respondent is required to deduct the amount
OF said tax from said coupons when re-
ceived by him; which tax the aforesaid pc
titioner refused TO pay or allow TO be de-
Quoted from said coupons"
Secondly. Because the Constitution OF
the State and the laws of the State dedicate
the aforesaid capitaiion tax OF 81, and one
fifth of the property tax aforesaid, amount
ing to S1.0S, to public schools, and must be
collected in money; otherwise the provision
Of the Constitution respecting the school
fund will be defeated"
IN SUPPORT OF HIS FIRST REASON
he relies on section l Of article 10 OF the
Virginia Constitution, which is in the fol-
lowing words: Taxation, except as here
matter provided, whether imposed by the
State, county, or corporate bodies, shall be
equal and uniform, and all property, both
real and personal, shall lie taxed in proper
ton to its value, TO be ascertained as pre-
scribed by law. No one species OF property
from which tax may be collected shall be
taxed higher than any Other species OF pro-
perty OF equal value"
The right TO exempt from taxation is a
right which is incident TO the legislative
prerogative. 1t is essential TO the wei
fare Of the State that the power OF
exemption should be vested in the govern
ment, and it is as inherent in the legislative
department as the power OF taxation, and
NAV be exercised by the Legislature at It's
discretion, except when it is clearly forbid
den by the organic law. Judge Cooley, a
distinguished jurist, and one OF the sound
eat and most eminent writers on cOnstitu'
tional limitations and other branches OF the
law. saws "the general right to make ex-
emntions is involved in the right TO appor-
tion taxes, and must be understood to exist
wherever 1t is not forbidden" and cites
numerous authorities in support of the doc
trine. And the same doctrine was held by
This court in The City OF Richmond Us. The
Richmond and Danvile Railroad Company
t21 Grattan, G0D with even greater strength
of expression. Judge Staples, delivering
the opinion Of the court, said: "The
power OF exemption, as well as the power
OF taxation, is one OF the essential elements
of sovereignty.
THE RIGHT OF THE LEGISLATURE
IN surrender the power OF taxation in spe-
cifc cases has been the subject Of one OF tue
oblest and most exhaustive judicial discus
sions ever known in the Supreme Court OF
the Tinted States, and Is now regarded a.
established upon the mos, solid foundations
NJ nublic policy and eXpediency."
Is IL forbidden by the above clause in the
Virginia Constitution In State Us. North,
OF Missouri. 464, 1t was held "that the pro-
vision in The Constitution OF that State
which declares that all property subject TO
taxation shall be taxed in proportion TO Its
valoe Substantially the same that IS con-
tained in the clause OF the Virginia Constr,
tntion above cited) does not require that all
nropertv In the State shall be taxed, Dut
that when any species OF property Is seiected
for taxation It shall be taxed in proportion
IN its value And such, we think, Is the
of the clause in the Virginia Con-
stitutioo above cited. 1t was not intended
70 REQUIRE the Legislature to tax all the pro-
nertv in the State. aud forbid its exercising
its inherent power, when necessary ior ,ns
public interest and promotlYe OF souna
public policy, to exempt certain propeny
from taxation, but only TO prescfiDe rue
by which the Legislature should pe gulueu
in apportioning taxation, that all properly
taxed should be taxed In proportion 10 IT'S
value. That ii does not mean TO take from
The Legislature It's
IMPORTANT INHERENT POWER