Case Name: The People ex rel. Samuel H. McCrea v. The Soldiers' Home & The Baptist Theological Union
Court: Illinois Supreme Court
Jurisdiction: Illinois
Decision Date: 1880-06-16
Citations: 95 Ill. 561
Docket Number: 
Parties: The People ex rel. Samuel H. McCrea v. The Soldiers’ Home & The Baptist Theological Union.
Judges: 
Reporter: Illinois Reports
Volume: 95
Pages: 561–571

Head Matter:
The People ex rel. Samuel H. McCrea v. The Soldiers’ Home & The Baptist Theological Union.
Filed at Ottawa June 16, 1880.
Taxation—exemption by charter binding on State. Where the property of a corporation is exempted from taxation by its charter, the exemption, amounts to a legislative contract, which is binding on the State, and such property can not afterwards be subjected to taxation.
Appeal from the County Court of Cook county ; the Hon. Mason'B. Loomis, Judge, presiding.
Mr. Francis Adams, for the appellant:
The 7th section of the charter of the Baptist Theological Union provides that “ the property, real and personal, belonging to such corporation at any and all times hereafter, shall be free and exempt from all taxation and assessments, special or generalj for any and all purposes whatever.” Vol. 1 Priv. Laws 1865, p. 38.
The General Assembly shall provide for levying a tax by valuation so that every person and corporation shall pay a tax in proportion to the value of his or her property. Const, of 1870, art. 9, sec. 2.
The only exception to the limitation by this clause is in section 3 of the same article, which is: “ The property of the State and counties, both real and personal, and such other property as the General Assembly may deem necessary for school, religious and charitable purposes, may be exempted from taxation.” See Northwestern University v. The People, etc. 80 Ill. 335.
The case cited decides that the power to determine the amount of property which shall be exempt from taxation is conferred by the constitution on the General Assembly, and there is nothing in the opinion of the Supreme Court of the United States which conflicts in the slightest degree with this decision. That case also holds that exemption from taxation must be strictly construed.
Mr. Consider H. Willett, also for the appellant:
This case can and should be distinguished ftom that of the Northwestern University v. The People, decided by the Supreme Court of the United States.
If it be conceded that the charters create a contract of exemption, yet it can not be denied that such contracts seek to tie up the hands of future legislatures and destroy rights which the constitution vests in every successive legislative body. It is an attempt to destroy legislative power, and not the proper exercise of a delegated power.
In the Northwestern University eases the legislature did seek to exercise its discretion in ascertaining the property deemed necessary for school purposes, and limited the amount to 2000 acres; but in the case at bar the amount is unlimited, and no such action was taken by the legislature as the constitution of 1848 contemplated.
The provision of the constitution of 1848 is worded as follows: “The property of the State and counties, both real
and personal, and such other property as the General Assembly may deem necessary for schools, religious and charitable purposes, may be exempt from taxation.”
If the charters are sustained as exemption contracts it is possible for them to require every acre of land in the State of Illinois to meet their requisitions.
If the whole State is not swallowed up by exemptions from taxation, many villages, cities and townships can be. Such confiscation in the name of charity can not be sustained.
Mr. John P. Wilson, for the appellees.

Opinion:
Mr. Justice Dickey
delivered the opinion of the Court:
This is an appeal from a judgment holding certain property' of appellees exempt from taxation, under the provisions of their respective charters.
The question involved in this case was passed upon by this court, in the case of Northwestern University v. The People, 86 Ill. 141. That case was taken to the Supreme Court of the United States, where the judgment of this court was reversed. It was there held that the exemption from taxation was by the. legislative power, in the charter, and was binding as a contract.
Following the ruling of that court, we think the judgment of the county court was right, and that by the respective charters of appellees, the property in question is not subject to taxation.
Judgment affirmed.
Scott, J.: I do not concur in the opinion of the majority of the court.