Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-07-29
CORPORATION FRANCHISES.
Question Of Assessment Submitted 10
Attorney General.
County Assessor and State board OF
Equaiizsi.Gn nave Fewer HAT
Mus, bo Deterni,nei by Ns,ure
OF Property.

The question rs TO whose right 1t 10
to Assess corporation franchises, the
State Board of Equalization, or the
county assessors has been submitted
to the Attorney General, VINO says,
that 1t must be determined by the
nature of the property. Following is
Mr.. Bishop's opinion:
State Board of Equalization, Salt Lake
City, Utah.
Gentlemen-I beg to submit the fol-
lowing, relative to Your inquiry OF July
49, which is as follows:
PLEASE inform this board whether
under the revenue act, 1t is lis duty to
assess franchises of corporations indie
pendent OF tho assessment Tor general
property"
Section of article 10 OF the constitu-
ton relating TO revenue and taxes, pro-
vides; "Al property in the STATE not
exempt under the laws OF the United
Staies, or under this constitution, shall
be taxed in proper ion 10 Its value, to
be ascertaineI as provided Dy law.n
Then follows the definition OF the word
property" which includes, among
other things, franchises" In this Sec
ton is contained TWO propositions; First,
that all properly in tho Stale IL subject
to taxation. Second, that franchise is
property within the meaning OF the
Constitution. Pursuant TO this provision
of the Constitution, it seems apparent
that the Legislature Intended that fran
chises should be assessed,
Section II OF the revenue act provides:
"All property and franchises owned 10y
railroads, street railways, car, railway.
depots. telegraph and telephone COM
panles OF this state must be assessed by
the State board OF equalization, as here
matter provided"
Without attempting to point out every
place in the revenue act where il
Is provided for the assessment of fran
chises, it will be sufficient to call alten-
lion to a few of them. In section 30,
the personal property and franchises
OF gas and water Companies must be
listed and assessed, etc. Section 90 pro-
yides Tor tho assessment of bridges and
ferries, and their franchises. Section SO
provides for the assessment OF electric
light lines, canals bitches and fumes and
the franchise OF the same when separate.
~ taxable. So also section 90 in deter
mining tho duties OF the Sta,e board of
equalization, provides for the assessment
of all property and franchises of rail-
roads, street railways. cars, railway
depots, telegraph and telephone compan-
les, but contains this proviso-franchise
derived from the United States must not
be assessed.
Again in subdivision 8 Of section 81.
which defines the powers OF the State
board OF equalization, il Is provided: "ro
ANNUALLY assess the property, franchises,
and roadways OF all railroads, street
railways, cars, railway depots, tele-
graph and telephone companies in this
Safe at their actual value on the first
Monday in March at ~ O'Clock room,
etc."
These references TO legislative enact
ments, | think are sufficient to show
that 1t was unquestionably tho intention
of the Legislature that franchises OF all
kinds shodld he taxed, and these legis-
lative enactmonts are in perfect accord
with the provision OF The Constitution
above referred to.
A franchise is Il species OF property
intangible, 1t is true, but nevertheless,
valuable, depending upon tho conditions
and circumstances surrounding the
same. They are special privileges con-
ferrod by the government upon indi-
viduals. And when so conferred belong
to the individual 10 whom they arc
granted and not to citizens of the coun-
try generally of common right. Neither
corporations az such nor because their
franchises may constitute contract, arc
exempt from taxation unless by clear,
unequivocal anu valid contract.
Property that may exist in franchise
is wholly distinct and separate from
other tangible property which may be
owned by corporation or tho party
holding the franchise, and under the
constitutional provisions, supra, the
legislative enactments referred to, should
be assessed separately and independents
ly therefrom.
As 10 whether or not tho duty OF so
assessing, would be one deyolving upon
tho state board OF equalization or upon
the county assessor would be determined
by the nature Of the properly to be as
sessed, as under the law, certain fran
chises arc assessable by tho state board
OF equalization, while others come with
in The province Of the county assessor.