The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-07-29
HOTELS WIN REFUND OF
STATE LICENSE TAXES
Judge Richardson Hands Down Far
RcaclinS Decision In Hust-
ings Court.
LEGISLATURE TOOK ACTION
Opinion Will Result in Refund OF
S2.S2S.To to Four Richmond
IiotelS-State May Lose Large
Sum il Claims Are Presented.

An order entered Yesterday BY Judge
i rn,.,s Of the l.ustinEs Court: d.!
20 refund TO the Jefferson. Richmond.
Murphy's and Lexington Hotels the
sum or S2s2S15. WHICH is held by III"
from these hotels in the form OF Ii
censc taxes for the year 1913.
The decision IS Of far-rcachins sig
10 the state Treasury. IL virtually as
serts that under the law IN force az
the n,,a last nss"ssmen, no license tax was
SUCH taxes we're levied and collected
without warrant. If the decision OF
| tne linstinss Court is upheld by the
which tribunal the Commonwealth viii
t take H. cause cause ever, ho,,el in tho
levied against IL for the year 1919 viii
have clear claim TO its recovery.
Figures showing the gross amount
collected from. this source during 1913
we're not available last night II w.a
f ,si., estimated, however,
every hotel chooses to assert It's claim
tho total refund for which the state
will b. liable viii he clJsc to 5C.ooo.
On" authority thought that the agSrc-
gate amount would bc nearer 81 900
40 PROVISION ron
SPECIAL TAN ON HOTELS
Under the so-called Byrd liquor law
special tax on hotels. Sections - am!
- OF the tax law define houses or
private entertainment. and fix the II.
C"nSe tax on such esta bli shm.ntS al s.
pius per cent Of the annual rent or
rental value Of tho nous" and furnish
lugs. Previous To the passage OF tho
Byrd law tho statutes contai,1ed a sec
ton levying upon hotels and ordimari"s
a q. 'i it,ls tax OF for each room. 1t
section in the Byrd law was inadvcrt-
i Oh dnGn'[ N,,2 ss ; ant, The Iesrs9n
Hotels. rs the Hotel Corporation of
Klchmond. brought suit in the IIus,-
ingS Court TO recover for tho taxes
years 1872 and 1919. The bill OF COM
plant recited the fact that the pres
cnt law contains no provision for tax-
ing hotels apart from their character
as real estate. ana demanded refund
past two years on the ground that the
tax was errnncously assessed
In the absence OF q specific tax on
holclS The Commissioner of the Rev
enue. acting under instructions from
the Auditor OF Public Accounts. had
classed hotels as houses OF private
cnterta inmcnt" on the ground that :.
hotel was more nearly that kind OF .s
Establishment than any other kind listed
Tor taxation. \ license tax OF So plus
:, per cent Of the rental value was
, thcrefore levied and collected from the
wealth.
CALLS H.. ATTESrIoN TO
WEAKNESS OF STATES THEORY
/
ton to the wcakness Of the states
theory in taxing hotels as places OF
private entertainment, because they re-
closely than other kinds
Is hardly necessary TO state that
o Tier Re, is no authority for such Il meth
objected IF the Legislature fixes II
~ upon horses and says nothing
kcvenue has not any right 20 tax :;
mule on the theory that ii is the near
est thing TO horse"
TWO sets OF petitions were flied. The
hTst asked for refund OF the taxes
paid TOY the year 1912, and the second
The Commonwealth through the At
rncy-General. demurred to both. In
murrer TO the petitions for a refund
of the 1871: taxes and orders their dis
hotels TO collect from the Commits
sioner Of the Revenue the amount paid
by. them as taxes for 1913.
The petitions for a refund of tho
19l2 taxes were ordered dismissed on
the ground that no license taxes are
re1undable further back than one year.
The hotels laid claim 10 the refund on
the theory that the tax was in reality
tax on real estate. since it was
crty and that it was therefore coliecta-
bile upon proof of erroneous assess
ment.
BOTH SIDES PREPARING
FOX Il
The petitioners excepted TO the &C
ton OF the court in sustaining the de-
murrers to the petition for the refund
of the 1912 taxes and execution Of the
courts order to this effect was sus-
pended for ninety, days to allow the
petitioners TO apply to the State SUI
preme Court of Appeals for 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 1918, 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 TO file a bill
OF exceptions.
The amounts ordered returned to the
s sGi9s75 R eSreaS ars eenT Hr
| phys s755. and Lexington. S2G6.25.
The General Assembly of 1914. rec
iognizing the deficiency In the law as
regards the taxing of hotels. passed.
a bill levying tax of 81 room upon
n it,ip