The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-03-15

The supreme court yesterday handed
down an opinion in the case of the Mer-
cur Gold Mining and Milling company
against William Spry. collector of Tooele
county. appellants. The opinion, which
approved the judgment of the lower court
was written b. Justice Miner and con-
CURED in by Chief Justice Zans and JUS
| tice Bartch.
1 declare void tax sale made OF respond
/ ents mining claim for taxes levied and
assessed upon the net annual proceeds OF
\ its mine for the year 1886. Judge Cherry
found the issues for the plaintiff
The findings showed that the assessor OF
/ Tooele failed to list or assess tne net pro-
| ceeds of respondents mine in the manner
! provided for the assessment of other
| property, but in June, 1895, ne assessed
| the net annual proceeds of the raine for
| 1896 at $3.50. 900. upon the basis of the net
annual proceeds OF the mine between
June l, 1895, and June /. 1856. There were
carried upon books OF the county as
state tax of mills; a state school tax OF
mills; a county tax of mills; a school
tax of mills, and a special school tax
of 1914 mills on the dollar for the district
of Mercur. This made total tax levy
against the Mercur Gold Mining ana Mill
ing company of 271a mills $9,625 on the as
sessment of $3.50 600. The entire net pro-
ceeds OF the mine between the LIST of
June, 1895, and the 4th of January. 1895.
! were $l71, S74 90; between the 4th of Janu-
airy, 1895 and the 5th of April. 1896. they
, were S54,en.47, and between the 5th of
April and the LIST of June Of the same
year they were so. 537.S7. These facts APP
peared upon the books of the company.
and were accessible at all times TO the
assessor.
When the Mercur company learned of
the assessment, which was not until Oc-
tober, 1896 it Immediately applied to have
tho assessment contested, but the county
commissioners of Tooele county refused
The Mercur company paid its taxes on
valuation of 100000 of net proceeds.
Sl.75e and refused TO pay the balance or
$3.50.
Injunction proceedings were comm enced
to prevent collection of the balance FOR
the reasons stated. which Judge Cherry
granted. holding that the facts set out
i'm the complaint presented an unuSal
case and that the remedy provided
against illegal taxes was inadequate
AS conclusions of law Judge Cherry
found that section of article 10 of the
state constitution was not self-executlnS
and was not in force until April 9TH, 1896;
that the law imposing taxes upon the net
annual proceeds of the mine was a new
burden and should be construed as pros
pectiva; that the special school tax OF
Mercur district was void and that the
payment by the Mercur company or Sl,iJp
was in accordance with justice and the
taxes in excess of that was void.
The question 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 pro
ceeds of its mines for the year 1896. under
the state constitution and laws in force
at that time? And second. was the Spe-
cial school tax in the Mercur district for
1896 a legal tax. for which the Mercur
company was liable. and was the remedy
selected and asked for the proper one
in such case?
The opinion finds that the state consti-
tuition came into existence and was OF
binding force and effect. on and after
the 4th day of January, 1896 and that all
territorial laws, up TO that time, not re-
pugnant to the constitution, remained IN
force until they expired by stheir own
limitation. or were altered or repealed by
the legislature.
At the time the constitution became
operative, the court says, there existed no
territorial law providing for the taxation
of mines or their net annual proceeds.
Subdivision II of section 2.009. compiled
laws of Utah. 1855, the court finds. was in
force when the constitution was adopted
which expressly provides that mining
claims and the products of mines and the
ore in mines We're exempt from taxation
The ten mill special school tax. as voted
by the trustees of the Mercur school dis
trict, without the vote of the taxpayers,
the court finds was in direct violation
of law and without jurisdiction and conse-
quently Illegal and void.
The court further finds that all the
taxes upon the net annual product of the
paid before the commencement OF the
action and that taxes upon the product
of the mine from June l, 1886, to June l,
1897. would be assessable and collectable
in 1851
The court then declares the special
school tax Illegal, as also that levied
upon the mine from June LIST to Dec. 81.
1896 because at the time of the latter as
sessment there were no net proceeds of
the mine for that period of time known.
aScertainabe or in existence, and no as
sessmant could legally be made there-F
Finding no error in the record sne
court then affirms the Judgment and de-
cree of the lower court.