Sistersville daily review. [volume] (Sistersville, W. Va.) 1905-1907, 1905-06-17
DILLON'S RULING STANDS!
$500, 100000 OF Leassehold Interests In West
Virginia Must Be Taxed Separately

y
or laws of West Virginia and
that the act of the legislature of
1905 requiring chattels real to be
listed as personal property ex-
pressly stipulated that such a
lease was not to be. considered as
a chattel real. None of these
contentious was considered sound
by the court.
The company also held such
assessment was double taxation
and contrary to the state consti-
tuition.
The Decision.
The syllabus setting forth the
law is given in full above. Sur
marizing the case the decision rem.
ted that the Harvey Coal & Coke
company leased certain ground
for a period of 80 years, the lease
providing that a rent or royalty
to the lessons of Zoe a ton for all
coal mined, and also contained a
clause of forfeiture for non-com-
plianee by the lessee with the
covenant of the writing. 1t was
held that this writing created a
lease, a chattel real, taxable to
the lessee under chapter 35, acts
of 1905; that the act of the leg
islature in its taxation of chattels
real is not in violation, as double
taxation, or otherwise of the state
constitution, and is not in viola
tion of amendment ii of the nat
ional constitution, as wanting due
process of law, or denying equf
protection of the law.
Judge Brannon's opinion is
lengthy one, consisting of 43 tvn~
written pages. 1t recites the caso
that Harvey Coal & Coke compa
presented to Judge Bennett in
fayette county, bill setting up
that it made a contract with Nor
rls Harvey and others for the DIP
chase of all the coal in certain
land for which they were to paw
ten cents per ton for all coal min
ed and that it had actually de-
veloped the coal mine and was en-
gagged in the mining Of coal and
making of coke. The bill COM
plains that under legislation en-
acted in 1905, C. w. Dillon so in
structed the assessors Of Fayette
county as would require them to
assess said mining property under
the head Of chattels real. The
company asked that the assess
ors be enjoined from making the
assessment, but the court dismiss
ed the case and the plaintiffs ap-
pealed.
Judge Brannon.in his opinion,
says the tax commissioner claims
there is a value Of 100000 in
leaseholds in Fayette county
which has never been charged
with taxes. He recites many au-
thorities supporting the decision
and among other things says:
"The constitution Of this state
gives the legislature power in
deed a mandate to tax all prop
erty, real or personal. Is the
deed in this case what is in law,
property of the Harvey Coal COM
pany? The very suit in itself is
a concession by. the company that
it's right under said deed is prop
erty, because the suit is to defend
that property against taxes.
"The right vested by the coal
company and being actually ex-
ercised. is property and the legis-
lature has full power to tax it in
some manner. Except as re-
strained by the constitution. the
state may tax without limit as
to subject. We need not discuss
the power to tax this property
as the constitution gives it. -
| In conclusion Judge Brannon
says:
"The legislature has plainly
expressed its will that these chat.
tells real shall be taxed, and it be.
ing within the taxingpower OF the
state, it i'll becomes a court to de.
feat and frustrate the public and
Legislative will. For these rea.
sons we affirm the order of the
circuit judge"
! While that case concerns only
coal leases, the principle involved
is identical with that in the ass.
essment of oil and gas leases and