The Parker post., 1916-04-22
SUIT FOR
TAX REFUND
THE SOUTHERN PACIFIC CON-
PANY OPENS THE QUESTION
OF LEGALITY OF 1915 TAX LEVY
INVOLVING SUM OF s5,2es15.

IT remained Tor Cne6 >. +. company
to raise the question in the courts
as to the legality OF the tax rate in
Yuma county for the year 1915,
which it did Saturday by filing a
suit in the superior court which has
tor its object the refund of taxes
amounting to S5,29S.15, alleged to
have been paid under protest as the
! first of It's taxes in this county for
the year 1915, the payment being
made to avoid the penalties.
Opens Up Big Question.
This suit will eventually determine
, whether the board of supervisors in
his county exceeded their lawful au-
/ Inorlty when they increased the tax
rate for 1915 in excess of ten per
/ cent over the preceding year. The
| question was raised some time since
/ by the state tax commission, which
ordered the board to reduce the levy
in this county so it would come un
/ der the ten per cent statutory in
| ere ase for general purposes. The
county attorney, under whose advice
! the board fixed the rate, took the
matter up with the commission at
| that time, contending that the pro
vision which prevented counties from
raising the rate more than ten per
cent over the previous year applied
only to- taxes for general purposes,
and did not include money which it
might be necessary to raise for the
paymen+ Of interest on bonds for road
/ purposes, which were voted by the
people. The rate of increase com
planned of by the commission
amounted to about nineteen per cent
over the preceding year. The tax com
mission, after hearing the argument
of County Attorney Colman, withdrew
it's order for a reduction, and the
matter has stood in statu quo at this
| point ever since, until again raised
il the form of the lawsuit.
Allegations of Complaint
| The allegations of the railroad com
panys complaint is that the board
levied taxes for 1915 at an excessive
rate on property belonging to the
company in Yuma county, aggregating
in value Sis, ,581.91; that the levy
aggregated total of $1O,596.30 in
axes more than was lawful, in that
Ghe state rate had been raised over
the assessment of the previous year
more than the ten per cent limit
provided for in the statute; that the
company, under protest, paid the
first one-haf of this amount, or S.
298.15, before the firsthalf of the
taxes became delinquent, for the pur-
pose of avoiding the penalties accru-
ing to delinquent taxes. This pay
ment, according to the complaint,
was made on October 30, 1915, and
the court is asked to order the county
to refund the amount
The suit was filed by j. &C. Forest.
attorney for the company, and it is
probable the matter will be tested in
the supreme court of Arizona before
it is finished.
Statute Conflicting
Yuma attorneys, including the coun
ty attorney, realize that the statute
on the subject is somewhat conflict
ing, and some of them admit that it
will probably take decision of the
supreme court to definitely decide
the matter. Yuma county created
bonded indebtedness by q majority
vote Of the people, when it decided
to expend 100000 for the improve
ment of its roads, and the tax rate
for 1915 was raised over the rate for
1914 a sufficient amount to pay the
interest on the bonds, in addition to
the general purposes of the county.
According to County Attorney Col
man, if it is impossible to increase
the rate more than ten per cent any
one year over the previous rate to
raise money TO pay this interest, the
interest, much less the principal on
the bonds, can never be liquidated.
He contends that the ten per cent
limit applies only to the raising of
money for general purposes, and that
the board has the right to go as far
above ten per cent as may be neces-
the purpose of creating a bond inter
set fund on debt created by special
vote of the people.
One Othe, Suit
In Graham county a shit has been
Continued on Page ~