The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-05-16
SUBJECT TO TAXATION.
FUNDS HELD FOR CHARITABLE
PURPOSES NOT EXEMPT.
An Opinion Handed in By County
Attorney WhittemOre on the
Question Raised By w. F, Cotton,
Trustee For a Hospital Fund.

County Attorney Whittemore has de-
cided that no charitable institution. in
this county at least. can have any cash
on hand without paying a tax upon the
same, just the same as though it were
a banking institution with plenty OF
surplus.
He yesterday delivered the following
opinion to the county assessor in an
swer to reference which is fully ex-
planned in the communication. The
opinion, in the judgment of the assess
or, covers all cases of a similar char
acter.
The legal judgment IS:
William L. Lynch, Esq, County AS
SCISSOR.
Dear Strive beg to acknowl-
edge receipt from you of letter of w.
F. Cotton, trustee, addressed to your Of
flee, in which he claims that all mort
cages and trust deeds standing OF
record in the name of William +. Col
ton, trustee. as grantee. are security
for loans made from the hospital fund
created by contributions of the employ
ees of the Rio Grande Western Rail-
way company and are held for char
liable purposes only, the proceeds be-
ing used exclusively in the care Of the
sick and wounded, and claiming that
for the reasons expressed such mort
cages and trust deeds are not subject
to taxation At your request, we have
examined the status of the law in queS-
ton and find it to be as follows:
Section 2 of article 10, of the cOnSti-
fulton Of no a of T1fah entitled
Revenue and Taxation" provides
among other things. IAN property OF
the state, not exempt under the laws of
the United States or under the conSti-
tuition shall be taxed in proportion to its
value, to be ascertained as provided by
law
Section of the same article provides
''The legiS allure shall by law provide
a uniform and equal rate of assessment
and taxation on all property in tina
state, according to it's value in money
provided that a deduction OF
debts and credits may be authorized
provided further that the property of
the United States, of the state, counties.
cities, towns. school districts, munich
pal corporations and public libraries
lots with the building thereon used ex-
clusively for either religious worship
or charitable purposes, and places of
burial. not held or used for private or
corporate benefit. shall be exempt from
taxation. bitches. canals and fumes
owned ard used by individuals or cor
porations, or the individual members
thereof. shall not be subject to taxa
ton so long as they shall be owned and
used exclusively for such purpose
Said section 8 further provides: THE
legislature shall prescribe by general /,
law such regulations as shall secure a
just valuation for taxation of all prop
eIty SO that every person and corpc&
ration shall paw a tax in proportion tC
the value of his, her or it's property"
In compliance with the mandate of
the constitution contained in article 13
above referred to. the state Legislature
of the state of Utah, during its session
for the year 1896, passed a general rev. ,
enue law which by the terms thereof .
(section 1850 took effect upon its ap-
prevail, and being approved on April
5. 1896 became on that date a. law of
the state. Said revenue act provides
"Section All property in this state
not exempt under the laws of the Unit
ed States. or under he constitution
of this state. shall be taxed in proper
ticn to its value as hereinafter provid-'
ed.
Section 2-The property of the Unit
ed States. of the state, counties. cities
and towns (wihem necessary for nnunic-
ipal purposes or when no revenue is
derived therefrorn), school districts and
public libraries. lots with the buildings
thereon used exclusively for either re-
hgiOus worship or charitable purpose
and places of burial not held or used
for private or corporate benefit. shalt
be exempt from taxation CFhe balance
of this quotation follows the language
of the constitution given above).
Section 1876 of the same act provides
"All acts and parts of acts in conflict
herewith are hereby repealed" :
The above quotations from the state
constitution and the revenue act of
1896 shows the status of the law now ip
force relative to the question of ex.
per construction thereof is that all
property in the state Of every character
IS subject to taxation excepting OMIT
the property specifically and in terms
exempted by the constitution of ths
state. Reference thereto shows that
the only property of a. charitable organ+
ization that is specifically exempted
from taxation is ''lots with buildings
thereon used exclusively for charitable
purposes and it nowhere, even by i'm
plication, exempts from taxation any
moneys or funds. however held, belong
ing to any charitable organization
Exemptions of this character must and
are. by all legal rules and decisions, to
be strictly construed and can never be
extended beyond the plain language
and meaning Of the law establishing
such exemptions
We are compelled therefore to advise
YOU that the claim of Mr.. Cotton is
vulnerable and that said property must
be assessed by you and returned for
taxation upon the same basis as any
other taxable property.
G. o. WHITTEMORE, !
County Attorney!