The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-07-29
HOTELS WIN REFUND OF
STATE LICENSE TAXES
Judge Richardson Hands Down Far
Reaching Decision In Hust.
iDgS Court
LEGISLATURE TOOK ACTION
Opinion Will Result i'm Refund OF
81, S2S.0 to -Four Richmond
IfOtcls-State May Lose Large
Sum il Claims Are Presented

Richardson, OF the ilustings Court, d.
reefs the Commissioner OF Revenue
MurphyS ana Lexington Hotels tho
sum OF &e.s2S.i5. which is held by the
Trour, 10 have been illegally collected
censc taxes for the year 1913.
The decision is OF far-reachinr sig
ni"cance TO the hotels Of the state and
sertS that under tn" law ia force at
inc last assessment no license TAX was
without warrant. II the decision OF
| ne liustinss Court is upheld by tho
which tribunal the comno wealth viii
take rs cause. every hotel in The
i STAT that has paid the license tax
have clear claim to its recovery
futures mo, .howing the gross amount
we're not available last night Ii was
conscrvaflvelN estimated. however.
mat II the decision is upheld. and
the total refund for which the State
w ~ill b. liable win be close to $4,000.
gate amount would be nearer $4,000.
NO PROVISION. ron
SPECIAL TAN on HOTELS
Under the so-cslled Byrd liquor law
oil i""s no provision il made for :,
30 OF the tax law define houses OF
private entertainment. and Tx the II
c"nsc tax on such esta blishn,"uts at g.
Plus . per cent Of the annual rent or
rental value OF the hous" ana furnish
,nsS; Previous TO the passage OF tho
BYRD law the statutes contained a sec
non 'eVying upon hotels ana ordiilari"s
"A license tax of 81 for each room IL
Is believed that the omission Of this
section in the Byrd law was inadvcrt-
Ont.
ri IN JaIuary 30; lot. the Jefferson.
pl
Richmond. brought suit in the Nust-
ings Court to recover for tho ,axes
years lei. and 1913. The bill Of COM
paint rcci,cd the fact that the pres
ing hotels apar, from their character
as real estate. and demanded refund
of the amounts paid by them in tho
past two years on the ground that the
tax Was crroneously assessed
IN the absence of a specific tan on
hotels. the Commissioned OF the Rev
enue. acting under instructions from
The Auditor OF Public accounts had
c ci;,,n,a hotels as houses OF, private
hotel was more nearly that kind Of .s
Enlistment than any other kind listed
per cent Of the een r.n, taT o. 3D. plus
therefore levied and collected from iho
hotels. which later became complain
ants IN the suit against the Common
wealth.
CALLS ATTENTION TO
WEAKNESS OF STATES THEORY
The bin OF complaint directed atten-
thcory in taxing hotels as places az
pa aiShte entertainment; because they re-
seinpied such establishments more
1T is hardly necessary 10 state that
IN dnere Is no authority for such a meth
objected. III the Legislature fixes a
tar upon horses and says nothing
;shout mules. Commissioners OF the
Keyenue has not any right 10 tax
mule un the theory that II is the near
est thing to horse
Two sets of petitions were filed. The
first asked for refund OF the taxes
paid for the year 1912, and the second
asked for a refund of the 1918 taxes,
torncS- q cncral demurred 10 both. In
I his opinion Yesterday Judge Richard
son sustains the commemorative de-
of the 1912 taxes and orders their dis
m hn,sia but o nplolds the right OF the
sioner Of the Revenue the amount paid
by them as taxes for 1913
The petitions for, refund OF tho
1912 taxes were ordered dismissed OF
the ground that no license taxes are
reIundable further back than one year
The hotels laid claim TO the refund on
the theory chat the tax was in reality
a tax on real estate. since it was
based on the rental value OF the prop
crty and that il was therefore collecta-
ment.
BOTH SIDES PREPARING
PETITIONS FOR APPEAL.
The petitioners excepted to the ac-
ton of the court in sustaining the de-
murrers to the petition for the refund
of the 1912 taxes and execution OF tho
courts order to this effect was sus-
pended for ninety days 10 allow the
petitioners to apply TO the state Su-
Dreme Court of Appeals for a writ OF
error and supcrsedcas.
Attorney-General Pollard moved 10
set aside the Judgment rendered by
the court as to the refund of the taxes
for 1913. as contrary to the law and
evidence. The court overruled the mo-
ton and the Commonwealth excepted
to the ruling. The order for the re-
fund was suspended for ninety days.
and the Commonwealth was allowed
sixty days within which 10 file a bill
OF exceptions.
The amounts ordered returned to the
c1m Jd :, hotels, hotels are; Jefferson.
phys. s755. and Lexington, $26G.25.
The General Assembly of 1914, rec
iognizing the deficiency I'm the law as
regards the taxing OF hotels. passed.
| bill levying tax of 81 room upon
all hotels CONTAINING fifty rooms or
more. The NEW Lave became effective