West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1905-06-29
CHATTELS REAL.
That LeaSehOld Decision of the
State Supreme Court.
From The Falrmont llmes

From the Fairmont Times
The Republican press OF this
State, and more particularly the
Fairmont West Vrginian and the
Wheeling Iatelligencer, seems to
be much elated over a decision of
our State Supreme Court rendered
at Wheeling on last Friday wherein
it held that leasehold estates are as
sessable as chattels real on the per.
sonal property book, and have TAX
en- occasion to criticise our position
heretofore taken on this question
without stating what il is. They
appear to be as much pleased as n
small boy who has been handed a
large red apple, which, without in
vestigation, he believes to be good
and sound simply because 1t looks
red. But imagine the disappont-
ment of the youth when he learns
that he has been deceived, and the
large red apple which he believed
to be good and and palatabie now
turns out to be unwholesome and
hardly worth eating. These papers
will no doubt be in the same pre-.
dlcament when they are informed
as to the real extent of this decision
on the question of increasing the
valuation of taxable property in this
State.
We again assert as proposition
of law that leasehold estates, as
chattels real, were as much assess
able prior 20 the act of 1905 as
since, although they had never be-
fore been listed as such, or the ques-
ton decided by the Supreme Court.
That while it is true that chattels
real are specifically named as taxa
bic property in the language OF the
act Of 1905, yet they are implicitly,
if not actually, included within the
scope of our tax laws as .hey exist
ed prior to the act Of 1905, as con
tended by Mr.. Baker, OF Morgan
towl, in his argument in the South
p cnn Company case before Judge
Mason. AS this question was not
before the Supreme Court in the
case just decided, or in any other
case before it, we will be obliged to
await the final decision the
Monongaiia county case wherein
this particular question is involved
and is to be decided. If the court
should decide that leaseholds were
assessable under our old laws as
they were prior to the act Of 1905,
then why all this jubilation over
the recent decision wherein this
question was not involved Is it
because Of the fact that the Repub
lican party has not been enforcing
the tax laws in this State for the
past ten or twelve years
In order to enlighten the the pub
lie on ;hc scope and extent of this
new tax decision with respect to
coal, oil and gas leases let US illus
trate, first, its effect on coal lands
being mined under royalty contracts
or leases, and then as to oil and gas
leases.
We are informed that it is the in
tcntion of the Tax Commissioner
Dillon under this recent decision to
assess the coal to its owner, at its
true and actual value on the land
books, and the royalty contract or
lease on this same coal, 70 its owner
as chaitel real on the personal
property book. That is, the con
tract or lease itself will be assessed
as an item Of property, under the
head Of chattcls real, because Of its
peculiar wording wherein il employs
the phrase 1ease, let and demise"
which The law defines 20 be a chat
tel real and as such assessablc, that
such n instrument # writing
creates only lcaschold estate be-
cause it leases the coal on a royalty
basis instead Of selling it outright.
! This being true what is there in the
way Co prevent the coal operator
who holds the royalty leave or con.
tract from making mutual arrange
mcnis with the coal owner by which
they share the taxes on the coal IT,
self and change the wording Of the
instrument Of writing from '1ease,
let or demise" to "scll, grant and
convey" leaving all. the other con.
duons OF writing as they formerly
we're, thereby converting what was
formerly a lcasehold estate, or chat.
tel real into defessiblc title, or
title in fee upon condition, and
| avoid taxation on the value of the
chattcl real. IL can and no doubt
/ will be done II done, then the
coal operator uo longer has lease
or royalty contract to be assessed as