Case Name: The People of the State of New York ex rel. Edward H. L. Smith, Supervisor of the Town of Smithtown, Relator, v. Nathan L. Miller, as Comptroller of the State of New York, Respondent
Court: New York Supreme Court, Appellate Division
Jurisdiction: New York
Decision Date: 1904-05
Citations: 94 A.D. 567
Docket Number: 
Parties: The People of the State of New York ex rel. Edward H. L. Smith, Supervisor of the Town of Smithtown, Relator, v. Nathan L. Miller, as Comptroller of the State of New York, Respondent.
Judges: 
Reporter: Appellate Division Reports
Volume: 94
Pages: 567–571

Head Matter:
The People of the State of New York ex rel. Edward H. L. Smith, Supervisor of the Town of Smithtown, Relator, v. Nathan L. Miller, as Comptroller of the State of New York, Respondent.
Tax on the Long Island State Hospital authorized by chapter 389 of the Laws of 1896.
Under chapter 389 of the Laws of 1896, providing that the lands of the Long Island State Hospital, located in the town of Smithtown, Suffolk county, and owned hy the State of New York, “shall he assessed and' taxed at a like valuation and rate as a similar land of individuals within said, town, and in the same , manner as other lands are assessed and taxed for the purpose hereinafter provided,” to wit, the extinguishment of the bonded indebtedness contracted by the town in aid of the construction of the Port Jefferson branch of the Long Island railroad, the State of New York is not obliged to pay to the town taxes upon the assessed value of the lands at the same rate as those paid by other lands of the town for the purpose of paying all of the town obligations, but only such portion of the amount annually raised by the town for the purpose of paying the matured bonds issued in aid of the construction of the railroad, and of paying the interest due on the unmatured bonds, as the assessed value of the hospital lands bears to the assessed value of all the lands in the town.
Certiorari issued out of the Supreme Court and attested on the 2d day of Hovember, 1903, directed to Hathan L. Miller, as Comptroller of the State of Hew York, commanding him (as the writ was amended by an order bearing date the 5th day of December, 1903, and entered in the office of the clerk of the county of Suffolk) to certify and return to the office of the clerk of the county of Albany all and singular his proceedings had in assessing certain State lands in the town of Smithtown, Suffolk county, Hew York, for the year 1902, under chapter 389 of the Laws of 1896.
About thirty years ago the town of Smithtown was bonded to the amount of $50,000 for the purpose of' raising money to assist in the construction of the Port Jefferson branch of the Long Island railroad. Those bonds bore interest at the rate of seven per cent, and became due in 1901. By chapter 230 of the Laws of 1884 the county of Kings was enabled to and did purchase a large tract of land in the town of Smithtown, and erected and maintained thereon extensive buildings for the care and treatment of the insane. It was, by section 5 of that act, provided that the lands so purchased should be liable in the county where situated to taxation for county purposes, but that the buildings and improvements thereon should be exempt from any taxation whatever.. By chapter 371 of the Laws of 1891 this section was amended so as to provide that the land should be assessed for taxation at an amount equal to but not greater than the amount paid therefor, and still provided that the buildings and improvements thereon should be exempt from taxation. In 1895 this entire property was conveyed to the State of New York, and as State property it could no longer be taxed. In 1896 (Chap. 389) the law in question was passed. Under this act this property was assessed at $87,500, and ever since its enactment the State has paid to the town the taxes upon that assessment at the same rate as paid by other lands within the town. Eor example, if the tax rate for any one year was 62 cents on every $100, the State would pay the sum of $542.40. This continued until the year 1902. In that year the assessment of land yas, as before, the sum of $87,500. The tax rate for the year in the town, county and State taxes was 62 cents on each $100, at which rate the tax would amount to $542.50. The State Comptroller, however, issued his Certificate .to the State Treasurer for only the sum of $20.70, alleging as a reason therefor as-follows: “On investigation it was found that the bonded indebtedness of said town matured in 1901, and the town not having a sufficient amount in its sinking fund to pay the bonds in full, issued new bonds for $18,000. The bonds being $500.00 each and bearing 3|- per cent interest are to be paid one in each year up to and including July 1, 1925, and two in each of the years 1926 to 1931, inclusive. To retire said bonds as they mature, there should be raised in each year up to and including the year 1925, the sum of $517.50 and for each of the years 1926 to 1931, inclusive, the sum of $1,035.00. This Department being of the opinion that under Section 2 of said Chapter 389 of the Laws of 1896, the State was liable only for its proportion of the tax levied to extinguish the bonded indebtednéss of said Town of Smithtown and not, as the local authorities contend, for the proportion of the amount levied for State, Town and County taxes that the assessed value of said property bears to the total valuation of the Town (which view is sustained in your opinion of June 23, 1903). The tax of 1902 was audited at,, and a credit given of $20.70, for the following reason:
“6 The aggregate valuation of the Town of Smithtown for the year 1902, as reported to this office by. the Clerk of the Board of Supervisors of Suffolk County is $2,212,687.93; the assessed valuation of the hospital property is $87,500, or about 4 per cent. The amount of tax that should have been levied to retire one bond was $517.50,-of which amount the State should pay 4 per cent or $20.70.”"' This determination is sought to be reviewed by this writ of certiorari.
JV. /S. AckerT/y and B. Miles, for the relator.
William IL. Wood and John Gv/rmeen, Attorney-General, for the respondent.
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Opinion:
Smith, J.:
The correctness of the Comptroller's determination rests upon the construction of chapter 389 of the Laws of 1896. The 2d section of the act states unmistakably its purpose,, to wit, the payment of the " equitable and just proportion of taxes imposed for the discharge of such debt as by this act provided, contracted and incurred prior to the acquisition by the State of lands occupied by the Long Island State Hospital." That payment is required to be made by allowing to the treasurer of Suffolk county a credit of such proportion of said taxes as may be required to pay such debt hereinbefore mentioned. In the year 1901 these bonds became due. If paid in that year the obligation of the State under this statute would have ceased. There then remained unpaid about $18,000 of the $50,000 originally contracted. Instead of paying the said bonds when they became due, they were in fact extended, or renewed bonds given, running, the last of them, until 1931. If the relator's contention be upheld the State will by that time have paid not only its just proportion .Of said' debt, but will have practically paid the debt in full by the' taxes contributed. This, we think, is clearly at war with the expressed intention of the statute.. The contention of the relator, however, is based upon some expressions in the 1st section o,f the statute. It is there provided .that this land " shall be assessed and taxed at a like valuation and rate as a similar land of individuals within said town, and in the same manner as other lands are assessed and taxed for the purpose hereinafter provided." The Comptroller's determination in no way antagonizes this part of the statute. Assuming that the land in the town is -assessed at the rate .of 62 cents upon .$100 for all purposes, it would only be assessed a small part of that sum for the purpose of paying this bonded indebtedness. According to the rate of assessment upon other land for thepv/rpOse of paying this bonded indebtedness is. this State land to be assessed. The relator's contention that it should be according to the rate, of assessment on other land, for the purpose of paying all debts is unwarranted by any of the provisions of the act. The fact that the State has thus paid a tax assessed from 1896 until 1902 cannot change its obligation under the statute, nor is the statute altered by the fact that the county, when the owner of this land, paid taxes in full as that payment was made under an entirely different statute (Laws of 1884, chap. 230, § 5, as amd. by Laws of 1891, chap. 371).
The plain wording of the statute, in our judgment, leaves no room for construction. If doubt exists, however, as to its meaning, that doubt must be resolved in favor of the State. (See Black Interp. Laws, 119.)
The relator further contends that even upon the construction placed upon the act' by the Attorney-General, the Comptroller's determination was. wrong. In 1901 there remained unpaid upon this indebtedness the sum of $18,000. Thirty-six $500 bonds were issued which were payable, one in each year tip to and including July 1, 1925, and two in each of the years 1926 to 1931 inclusive. These bonds were to bear three and one-half per cent interest. The Comptroller has estimated that to retire these bonds there should be raised in each year up to and including the year 1925 the sum of .$517.50, and for each of the years 1926 to 1931, inclusive., the sum of $1,035, treating the assessed valuation of this real estate as four per cent of the assessed valuation of the town. He has found the sum of $20.70 as the sum with which the State and county treasurers should credit the county of Suffolk for the year 1902. It will thus be seen that while the Comptroller has allowed one year's interest upon each bond to be included with the principal of the bond to" which the State should contribute its tax, he has omitted to include the interest upon the remaining bonds which was falling due each year and which must be paid by the town. This was probably an inadvertence on the part of the Comptroller. The interest upon $18,000 at three and one-half per cent for one year amounts to $630, so that at the end of the first year, in addition to the payment of one bond or $500, $630 would be required to be paid upon this indebtedness. The State's proportion of that sum is $44.66, which the Comptroller should have properly directed the State and county treasurers to credit to the county of Suffolk. The determination of the Comptroller should be thus modified, and as modified affirmed, without costs of this writ to either party.
All concurred.
Determination of Comptroller modified, as stated in opinion, and as so modified confirmed, without costs to either party.
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