Perth Amboy evening news., 1906-12-01
WILL NOT Be OF
AID NEXT YEAR
New Law 0verturns Part Of Sta
tutes Under Which Tax De-
CisiOn Was Rendered.
MAY AFFECT THE WATER BOARD
City Took Matter to Supreme Court
ON Writ of CertioraIi to Have AS
sessment Levied by Madison Town.
ship Set Aside on Ground That
Land Was Used for Public Pur-
poses-The Court set 1t Aside.
Special to the EVENING NEWS:

~
Special to the EVENING NEWS:
TRENTON, Dec. Though the
supreme court has handed down de-
cision setting aside the assessment
for taxes levied by Madison town
ship, Middlesex county, on the water
works plant of Perth Amboy this is
the only year in which the city can
hope to profit thereby. This is so
because the legislature last winter
enacted law which entirely over
turns the portion of the statute upon
which the court based the decision
referred to. Next year, therefore,
the assessors will have the laws of
1906 as a basis for action in assess
ing the water works of Perth Amboy.
Justice Pitney has filed in the su-
preme court his opinion in the case
of the city of Perth Amboy against
the township of Madison, and Ed
ward Barker, its tax collector, which
was decided partially in favor of the
city November IL.
The commissioner of appeal 'ot
Madison township by resolution
adopted December 2S, 1905, added
to the tax duplicate certain taxes to
be collected from the city of Perth
Amboy upon certain real and per-
sonal property owned by the city and
situate within the township. The
property included ten-acre tract of
land containing power house and
other buildings, the whole valued at
SIS, ,000 auso a 100-acre tract val
ued at $4,000.
The city took the matter to the
supreme court on a writ of certiorari
TO have the assessment set aside on
the ground'that the property in ques-
ton was used for public purposes, to
wit, a water supply station, and
therefore was exempt from taxation.
The supreme court set aside the as
sessment on the $2S,000 tract, but
sustained that in the $4,000 tract
The syllabus of the opinion fol-
lows: a.
L. Under the revised tax law OF
1903 which exempts ''the property OF
the United States and of the state OF
New Jersey, and of the respective
counties, school districts and taxing
districts, when used for public pur-
poses," property used by a city for
the purpose of maintaining and oper-
ating water supply system estab-
lished under statutory authority, is
exempt from taxation.
2. The exemption clause above
quoted is not confined to its effect
to property located within the bounds
of the municipalities that owns it.
3. The right Of a city to exemp-
tion from taxation upon property
used for the purpose of its public
water supply system is not taker
away by the fact that sales of sur.
plus water are made to parties out.
side of the territorial limits of the
city, even if such sales be not al.
thorized by law.
The opinion says in part: From
the evidence we find that the 100.
acre tract was not in fact used foi
public purposes. 1t had been pur.
chased for the purpose of providine
for an extension of the water suppl,
system of Perth Amboy, but had no
as yet been devoted, to that purpose
except to small extent and tempo
rarily some time prior to the time ii
question. This property we hold no
to be exempt.
''The other tract is that WHEREOF
is situated the main pumping work
of the public water supply system o
Perth Amboy, by means whereof wa
| ter is driven to the city
This tract we find as matter of fac
was used for public purposes, If tn,
water works themselves constitut.
| public purposes. Then follows al
argument to show that the use of th,
water works was for public purpose:
within the meaning of the law.
The court finds that the sales o
water outside of Perth Amboy are
merely incidental to public uses ant
/ therefore does not constitute goot
ground for permitting that assess
ment to stand.
The portion of the tax law of 1870;
quoted in the syllabus, and which re
lates to exemptions, is Article /, sec
tion 3, paragraph 2. This Is super
seded and rendered nugatory by ;
little law passed by the last legisla
ture for the benefiteof Essex count.
and which was approved April q
last. This provides that all land
the property of any county, and al
lands the property of any taxing dis
trict, which are situated within th'
limits of any other taxing district
shall be subject to taxation by tn
4 taxing district within such lands ar
situated, at the true value of sue
lands without regard to any build
ings or other improvements on sue
lands, Notwithstanding any exemI
tiou nrnyided for in the acf tn ,yhi III