Court Opinion

ID: 9678953
Source: CourtListenerOpinion
Date Created: 2023-08-24 06:37:19.662641+00
Date Added: 2024-06-11T18:17:09.072486
License: Public Domain

ROBERTS, Judge
(dissenting in part).
SDC 57.0801 provides that, unless otherwise provided, if any person against whom an assessment has been made or a tax levied claims that the whole or any part thereof is invalid for any reason therein stated, the tax may be abated or refunded, if paid, "in the following cases only":
"(1) When an error has been made in any identifying entry or description of the property, in entering the valuation thereof or in the extension of the tax, to the injury of the complainant;
*242"(2) When improvements on any real property were considered or included in the valuation thereof, which did not exist thereon at the time fixed by law for making the assessment;
"(3) When the complainant or the property is exempt from the tax;
"(4) When the complainant had no taxable interest in the property assessed against him at the time fixed by law for making the assessment;
"(5) When taxes have been erroneously paid or error made in noting payment or issuing receipt therefor;
"(6) When the same property has been assessed against the complainant more than once in the same year, and the complainant produces satisfactory evidence that the tax thereon for such year has been paid; provided that no tax shall be abated on any real property which has been sold for taxes, while a tax certificate is outstanding."
SDC 57.0803 provides that applications for abatements or refunds "shall set out one or more of the grounds for abatement or refund specified" in the abatement and refund statutes "and relied on by the applicant". SDC 57.0807 grants a right of appeal to the circuit court from a decision of the board of county commissioners in the matter of abating or refunding taxes as other appeals may be taken from decisions of a board of county commissioners. The decisions of such board within the scope of its statutory authority are quasi judicial and thus are appealable and are "heard and determined 'de novo' " as provided in sections 12.0618 to 12.0620, both inclusive, of the Code of 1939. "In these cases", said this court in Williams v. Stanley County, 69 S.D. 118, 7 N.W.2d 148, "the issues to be tried in the Circuit Court are the issues presented by the record of the Board and passed on by it. The powers of the court in such cases are the same as those possessed by the Board."
*243SDC 57.0901 (payment of taxes under protest and action for recovery) originated as Chapter 289, Laws 1915. Two years after the inception of this suit statute, there was enacted the abatement and refund statute, Chapter 130, Laws 1917, which with certain exceptions is now contained in Section 57.0801. The latter statute was considered by Brown, J„ in Security National Bank v. Twinde, 52 S.D. 352, 217 N.W. 542. This court said: "that section is, by its express terms, applicable only in the cases therein enumerated, and is evidently designed to include only situations where the invalidity of the tax can be ascertained from the county records or from few and easily obtained facts aliunde, while for cases in which the legality or illegality of the tax necessarily involves the determination of questions of law calling for the exercise of strictly judicial functions, payment under protest and the other provisions of the suit statute afford the exclusive remedy." This language was quoted with approval and the reasoning followed in Fiman v. Hughes County, 55 S.D. 204, 225 N.W. 711.
The obvious purpose of enacting section 57.0801 was to provide an administrative procedure for the correction of the mistakes and irregularities in the assessment or collection of taxes specially set forth therein and not to clothe the board of county commissioners with power to consider and determine questions strictly of a judicial nature. The legislature acted within its authority in prescribing conditions and limitations on which an abatement or refund may be had and since the statute conferred a right not theretofore existing an applicant seeking relief under the statute must bring himself within its provisions.
The record does not contain a "complete transcript of the proceedings of the board relating to the matter of its decision" (SDC 12.0619) and this court cannot determine from the record the grounds relied on by respondent applicants for relief. The majority concludes that the applications here were for abatements and 'should have been granted under the provisions of subsection 3, § 57.0801. This court in Fiman v. Hughes County, supra, undertook an interpretation of the term "exempt from the tax" as used in subsection 3. In that case the applicant sought *244a refund on the ground that stockholders of a national bank could not be assessed and taxed on the value of their shares of stock as other personal properties because of the provisions of a federal statute. This court affirming the judgment of the circuit court denying recovery said: "Appellant would have the board of county commissioners determine, among other things, whether property clearly not exempt by any express language of South Dakota statutes and clearly taxable by the express language of section 5219, U.S.Rev.Stat. (12 U.S.C.A. § 548) is nevertheless tax exempt by reason of other federal statutes. This would involve an extension of the applicability of section 6813 far beyond its limits as defined in Security Nat. Bank v. Twinde, supra."
SDC 57.0310 provides that "All * * * personal property in this state * * * except such as is hereinafter expressly excepted, is subject to taxation". The properties here in question were not excepted by statute from taxation. It is generally held than an exemption of private property from taxation presupposes liability to assessment and applies only to a grant of immunity by virtue of constitutional or statutory provisions. 84 C.J.S. Taxation § 215. The provisions of the abatement and refund statute have been construed in two cases which are of controlling force. This court indicates that such statute providing for performance of statutory duties by a quasi judicial board and judicial review of its action should be construed to attain that end and not be extended beyond its administrative features.
The court below proceeded in the same manner as if proceedings or an action at law had been commenced by service of summons, heard evidence and adjudicated issues not purportedly presented by the record of the board of county commissioners. The court entered money judgment against the county apparently on the theory that the county had prevented by legal process the payment of the full amount of the purchase price of cattle sold by respondents to a third party. The court found, among other things, that assessments and levies of taxes on the cattle sold were invalid for the reason "that said cattle were and *245cere exempt from taxation by the state of South Dakota and its political subdivisions and taxing authorities." The board of couny commissioners and the circuit court on appeal could not grant relief beyond the applicability of section 57.0801 as construed by prior holdings of this court and judicially determine the legality or illegality of the assessments and tax levies in question.
The judicial determination by this court of the illegality of the assessments and levies involved and its mandate to enter judgment is an extension of the applicability of section 57.0801 beyond the authority conferred by the legislature. The fact that the parties argued in this court the merits does not confer jurisdiction. If a circuit court is without jurisdiction of the subject matter of litigation, this court does not acquire jurisdiction thereof on an appeal and has authority only to dismiss. Darnall v. State, 79 S.D. 59, 108 N.W.2d 201. I would reverse the judgment below and for reasons stated remand the cause to the trial court with directions to dismiss the proceedings.