The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-03
STATE CANNOT TAX
CITY'S PROPERTY
Judge Southall Rules Richmond S
Municipal Activities Are
Exempt.
APPEAL TO SUPREME COURT
Contention of Auditor Fails and
City Saves $4,000 the
Year.

Property owned and used by clues
IS exempt from State taxation, accord
ing to a decision handed down yester-
dav in the Hastings Court of Rlch-
nlond by Judge Robert G. Southan, OF
Amelia, who sat in the case just De-
lore Judge d. {. Richardson qualined
a'he argument was had on OCTOBER .
and 6, 1912
The proceeding was brought by the
city of Richmond 10 prevent COLLECTION
Of taxes levied under assessment
made by Revenue Commissioner IL. T.
Tresnon in order of Auditor Z. Lee
Moore. Acknowledgement Samuel W
Williams and Commonwealth Attor-
new Minitree Folkes appeared for the
state. while city Attorney Henry Il
Pollard represented the munlelpai
corporation. An appeal was noteo
Yesterday TO the Supreme Court.
Auditor Moore and Attorney General
williams interpreted the Constitution
as permitting the taxation by the
state OF such property owned by cities
AS was not used exclusively for pub
Tic purposes. Subsection of section
1873 OF the Constitution provides that
property lawfully owned and held by
counties, cities, towns or school cls
tricts, and wholly and exclusively usea
for county. city. town or public school
PURPOSES" shall be exempt from tax
ton But Subsection G, in eAplana-
ton says that nothing contained III
the section shall be construed 10 eH
empt from taxation any such publlc
building or land or any part thereof
which shall be leased or ne a source
OF revenue or profit
Assessed City Property.
In Richmond the First and Second
Markets are sources OF revenue 10
the city. so is the City Auditorium
So are the water. gas and sewerage
systems So Auditor Moore concluded
shat these properties are properly IAN
able for state purposes, and ne IN
structed Commissioner Tresnon 10 as
$. ss their value against the city The
total valuation is s1o.1sS.O0o. and the
tax claimed annually thereon Is 500
Cio.50.
The same principle involves other
property, such as public hospitals
schools, club rooms and Young Men
Christian Association buildings, when
they rent rooms and charge for accom-
,rodations. so in this city the YOUNG
Mems Christian Association. the Re
treat for the Sick, the University Col
leye of Medicine, the McGNi Cathoiic
rnion, the Memorial Hospital. and the
t;lk's Home were adiudsed taxable and
were assessed Property owned b.
cities and towns and counties all over
the State was equally applicable, ano
! there has been the greatest interest I'D
Judge Southalrs decision.
A case is still pending in Amherst
| County, where the State has assessed
for taxation some property used for
public water system by the city o.
} Lynchburg.
No Warrant for Tax.
Judge Southall held that the levy
ing and attempted collection Of such
a tax was illegal and unconstitutional,
ard that there was no warrant Tor IL
either in the Constitution or III the
statute laws. The provision concern
ing revenue producing property was
not intended. In mis- opinion, 10 apply
10 municipal plants in which com
modify is manufactured and sold to its
+ citizens az Is the case with the gas
plant in Richmond. the same princl-
r,;c APPLYING to the water and sewer
80. systems The City Auditorium
presented the most difficult problem
to mis- mind, but ne concluded that this
Z is hardly a revenue producer, since
/ entertainments with no admission lee
I show free OF charge
The case now goes 10 the supreme
+ Court of Appeals for final decision
In the meantime, the tdA IoE 4SA- "A4-
not be collected.
. Valuations Oh Richmond property, as
sessed by Commissioner Tresnon, are
as follows:
Assessed State
/ City Property Value lax
Second Market
new ------S l'-'9uV oV''''
second Market
(old) --.-- so'vVV v'--'"
First Market Main
street si'SVV -o'-''
FIRST Ma ket.
Franklin Street 4c.0oS liv-oV
CITY Auditorium 6".""o -iv-vV
water system
Old and new re-
old and new
rese IRIS,
pumphouse, set
thing basin. ma
chinery, pipes
and mains. in
Guiding SOuth-
side . 100000 100000