The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-30
TAXES MUST BE PAID
UNOCCUPIED PROPERTY OF NORTH
WESTERN TELEPHONE co.
LIABLE TO ASSESSMENT
DISTRICT COURT SUSTAINED
The Gross Earnings Tax Exempts
From Further Assessment
Only Such Property as
Is Occupied.
DISTRICT COURT SUSTAINED

In a decision written by Justice Collins
and filed yesterday, the supreme court
holds that the Northwestern Telephone
company, by reason of the gross earn
ings tax it pays, need not be further as
sessed for buildings which it owns and
actually occupies for its own business
purposes; but must pay taxes just as
an individual upon any property which
it may own and not actually occupy.
This decision is in the case of the State
of Minnesota, plaintiff, VS.. Northwestern
Telephone Exchange Company, defend
ant; and the district court of Hennepin
county is affirmed in upholding the right
of that county to levy specific taxes for
the year 1899 upon a certain tract of
land in Minneapolis owned by the defend
ant company, and at that time unoccu-
pied, although at later date utilized
by the company as site for it's ex-
change building. Under this ruling of
the supreme court the company is not
liable for specific taxes on the property
for any year since the erection and occu-
pancy of it's building. The syllabus in
this case is as follows:
The phrase Ordinary business blocks
in the proyiso found in the 1896 amend
ment to article 8 of the constitution of
the state providing for gross earnings
tax upon the property of sleeping, draw
ing room, parlor car, and other compa-
nies and owners Claws 1897, page 8, con-
Strued.
Held, that it was the intent by this
amendment and the legislative act which
followed, Laws 1897, chapter 3& to ex-
clude from the operation of the gross
earnings plan of taxation therein pro-
vided for all property owned by the par
ties named which does not in direct
manner promote the purposes for which
the main business was organized and is
carried on. Property devoted to that
main business, owned occupied, held or
used therein and exclusively, is exempt
from the ordinary methods of taxation,
the gross earnings system being substi-
tuted therefor.
This rule applied in a case where a
telephone company owned, exclusively
occupied held and used for it's company
purposes certain business blocks in the
city of Minneapolis. Held, that as to
is a substitute for the ordinary method
of taxation.
The same company owned a city lot
which was unimproved and unoccupied,
except that some personal property be-
longing to the company was piled or
stored thereon during the year 1899, for
which year specific taxes were assessed
and levied. The intention was to erect
building thereon for the exclusive use of
the company's business, and such n build
ing was erected in the year 1900. AS to
this tract the court below found that
there was unnecessary delay in adapting
this property to the use of the company,
and that it was not used or occupied for
company purposes during the year 1899,
within the meaning of chapter 314, supra.
this tract was liable to specific taxation
for that year. Held that the finding of
fact was justified by the evidence, and
supported the conclusion of law.