Legal Document

365 U.S. 744 81 Supreme Court Reporter 870 6 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 66 MOSES LAKE HOMES, INC., Larsonaire Homes, Inc., and Larson Heights, Petitioners,v.GRANT COUNTY. Number 212. Argued March 23, 1961. Decided April 17, Rehearing Denied June 5, See 366 947, 1671. Mr. Lyle L. Iversen, Seattle, Wash., for petitioners. Paul Atlantic Klasen, Jr., Soap Lake, respondent. Justice WHITTAKER delivered the opinion of Court. 1 Among their various contentions, petitioners sought our writ certiorari on ground that, although finding that State Washington had discriminatorily, theefore unconstitutionally, valued taxed federal Wherry Act leaseholds, Appeals Ninth Circuit, nevertheless, sustained enforced those taxes. 276 Federal Reporter, 2nd 836. We granted writ, limited to question. 364 814, 59, 5 45. Understanding decision will require a brief statement relevant facts case. 2 Acting pursuant provisions §§ 801 809 Title VIII National Housing (12 Code KF62 (1958 ed.) 1748, 1748a h—1, 12 Annotated KF65 U5 1748h—1), Secretary Air Force, behalf States, entered into separate lease, with each Moses Lake corporations, demising, in instance, particularly described tract land, within Force Base Grant County, Washington, term 75 years, unless sooner terminated by Government, use as housing project at nominal rental $100 per year.1 3 The leases were same form, bound lessee erect its leasehold project, maintain operate it throughout life lease. Each lease contemplated provided would raise money necessary construct an F.H.A. insured mortgage loan improvements, be serviced amortized out rents from units, which rented such rates military civilian personnel Commanding Officer air base might designate. further buildings 'as completed,' become property so remain, regardless any termination without compensation lessee. 4 With proceeds loans respective leaseholds aggregating more than $6,000,000, lessees erected projects undertook management operation agreed leases. In 1954, County assessor placed his assessment list taxation year 1955, but he did not then levy tax against it. promptly sued obtained decree Superior enjoining levying taxes 1955 thereafter. Upon County's appeal, reversed November 14, 1957, holding was taxable holding, upon understanding Offutt company versus Sarpy 351 253, 76 100 L.Ed. 1151, proper, purpose, value 'the full improvements' thereon. 51 Wash.2d 285, 287, 317 Pacific 1069, 1070. Thereafter, December these basis acting under § 84.40.080, Revised retrospectively assessed years through 1958, 1956 Heights 1957 1958 'omitted property' authorized section.2 Later, levied basis, 1959.3 7 On January 21, issued distraints, also notices sales improvements thereon held 4, satisfy demands. Very soon thereafter, instituted this condemnation action District Eastern 1, filed therein declaration taking, took, estates—depositing registry court $253,000 estimated value4—and thereupon, motion enjoined proceeding pending final determination 8 By answer, claimed, asked award it, greater part deposit demands.5 disputed claim, contending, inter alia, asserted invalid because discriminatorily violation 511 (70 Statutes-at-Large 1091, chapter 1029, 42 1594 note, note) Constitution. That issue, among others, litigated between parties adversary codefendants. note 4. 9 Although found Washington's 'taxes assessments (leaseholds) are * different higher (other leaseholds),' state injunction, have been validly before effective period (June 15, 1956),6 allowed items claim; denied all other claim. Circuit 'sustained (the District) court's method used assessing resulted true case non-Wherry leasehold,' page 847, fact does invalidate entire tax. It only requires amount collectible reduced what if basis,' and—otherwise upholding levies 1957—it remanded make proper reduction taxes, proceedings respecting taxpayers involved, except 1959 after acquired them. 10 addition weight properly accorded conclusions two courts below imposes similar is eminently clear so. Section 84.40.030 provides shall 50 percent fair value, 'Taxable estates price they bring fair, voluntary sale cash.' Consonant statute, has consistently held, save including State's own tax-exempt lands purposes market considering burdens well benefits. Metropolitan Building King 72 Wash. 47, 129 KF135 P2 883; 64 615, 117 495; 62 409, 113 1114. And see Bellingham Community Hotel Whatcom 190 609, 612—613, 70 301, 303, Dexter Horton Bldg. 186, 116 507. 11 Even cases remarkably here. There Company 50-year land owned State. As required very substantial land—funding cost large issue bonds—which immediately completion, became first cases, 1114, should 'speculative' 'actual *,' error assess improvements. later (64 883), emphasized determining leasehold, consideration must given burdens, mortgages Yet, overruling or departing respect state-created heaseholds, Homes Co., Incorporated 1071, felt bound, said, apply special valuation rule 1151. this, mistakenly read misapplied Nothing respect, holds unconstitutional se. involve question discrimination. involved law Nebraska thereon, constitutionally done. hold, construed case, discriminate federally favor state-owned lands. 13 If anything settled law, may Government lessees. See, e.g., Phillips Dumas School District, 361 376, 80 474, 384; City Detroit, 355 466, 473, 78 478, 424; Detroit Murray Corp., 489, 458, 441. supra, we said: 14 'It still remains true, beginning, even though fall directly operates whom deals.' U.S., 478. 15 closely point controlling. Texas estate government 'full leased premises' (361 378, 476), while imposed 'a distinctly lesser burden similarly situated exempt political subdivisions.' 379, 477. there '(I)t seem too much treat who deal treats deals itself,' 385, 480, void 'discriminates unconstitutionally lessees.' indistinguishable one 16 (but) basis' (276 847), remanding adjustment. discriminatory 'may exacted.' 387, 481. effect Court's remand direct valid attempted exact. no power decree. Only appropriate taxing officials determine, jurisdiction, whether one. When, here, invalid, 17 Nor merit respondent's contention judgment res judicata claims least 1956. This whatever hence discrimination could presented adjudicated 18 Inasmuch presently levied, lessees, void, exacted. 19 Reversed. May 31, 1950, August 6, 1953, 2, 1954. 84.40.080 provides, part, follows: 'The enter detail current shown omitted preceding year, valued, determine *. When made, paid due date made penalty interest.' petitioners' $142,285.73; Larsonaire, $68,838; $47,088. deposited sum allocated three $126,500; $65,300; $61,200. Thus, leaseholders reasonable value. 3. Had successful received $14,112 sum. 408 Amendments amended note), contains following provision: '* contained title prior 11, related provision local interest covered VIII: Provided, That, (not encumbering 1956) exceed *.'

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