LOUISIANA. A.-GENERAL CONSIDERATIONS. I. CONSTITUTIONAL LIMITATIONS. 1879. Art. 206, ibid The Constitution of 1879 has no special provision concerning the taxation of Constitution of railroads. They conform to the articles generally applicable to corporations and to individuals, as the case may be. It may be noted that article 205 provides that the Art. 205, ibid. power to tax corporations shall never be surrendered. Article 206 provides that the general assembly may levy a license tax to be collected from the persons pursuing the several trades, vocations, and callings, with certain stated exceptions which do not include railroad companies. stitution of May Article 226 of the Constitution of May 12, 1898, provides for the creation of a Art. 226, ConState Board of Appraisers, composed of the auditor and six other members, to be 12, 1898. elected for four years by the governor, lieutenant-governor, treasurer, attorneygeneral, and secretary of state, one from each congressional district. (See text, below.) Article 230 provides for exemption of certain railroads for ten years from date of completion. (See text, below.) II. GENERAL STATEMENT: SYSTEM AND DEVELOPMENT FROM 1890 TO 1900. The tax on railroads and sleeping-car companies is the general property tax. At the beginning of the decade the primitive methods of the property tax were applied to railways and sleeping-car companies, the real estate being assessed and taxed in the parish where located, the other property at the domicile or principal office of the company in the state. In the matter of assessment this system was, however, altered by constitutional amendment and Act 13 of the legislature of July 13, 1898, provision being made thereby for assessment of the property of railroad, sleeping-car, etc., companies by a State Board of Appraisers. 1 Changes of minor importance were as follows: By Act 106, July 9, 1890, the law that the real estate of railroads and other transportation companies "shall be assessed and taxed in the parish where located" was amended to read, "shall be assessed and taxed in the parish or assessment district where located," and the provision that the rolling stock of any company whose line lies partly in this state and partly in another, shall be assessed in the ratio which the number of miles of line in this state has to the total number of miles of its entire line, was extended to include companies whose sleeping cars run over lines partly in this state and partly in another state. And article 230 of the new constitution, adopted May 12, 1898, provided for the exemption of any railroad or part of such railroad thereafter completed prior to January 1, 1904, for a period of ten years from the date of its completion. B.-THE TAX ON RAILROAD AND OTHER TRANSPORTATION COMPANIES. 1. Nature. Railroads, sleeping-car and other transportation companies are affected by this law to the same extent. The tax is a tax based on the value of their general property. Art. 230, Constitution of May 12,1898. By the Constitution of 1898 it is provided that any railroad or part of such railroad thereafter constructed, and completed prior to January 1, 1904, shall be exempt from taxation for ten years from the date Art. 230, ibid. 1 The value of the franchise or of the intangible or nonphysical element of railway properties is not, and has not been during the decade, included in their assessment for taxation. July 12, 1888 (as of its completion; provided, that when aid has heretofore been voted by any parish, ward, or municipality to any railroad not yet constructed, such railroad shall not be entitled to this exemption unless it waives such aid or consents to a resubmission of the question of granting such aid to a vote of the property taxpayers of the parish, ward, or municipality which has voted the same, if one-third of such property taxpayers petition for the same within six months after the adoption of this constitution. And provided, further, that this exemption shall not apply to double tracks, sidings, switches, or other improvements or betterments, which may be constructed by railroads now in operation within this state, other than extensions or new lines constructed by such railroads, nor shall the exemption apply to any railroad or part of such railroad the construction of which was substantially completed at the date of the adoption of the constitution. 2. Assessment. § 29, Act 85, Real estate, including roadbed, roads, iron tracks, superstructures, excavations amended, p. 800, and channels of railroad (coaches and other transportation or telegraph companies), is assessed in the parish where located. $29. Revised Laws, 1897). Ibid. Act 106, July 9, 1890. Amended by Act 106, July 9, 1890, providing that such property shall be assessed in the "parish or assessment district where located." Other property belonging to such company not specifically exempted by the constitution is assessed at the domicile or principal office of the company. But it is provided that the rolling stock of a company whose line lies partly within this state and partly within another state, shall be assessed in this state in the ratio which the number of miles of line within this state has to the total number of miles of its entire line. Act 106, July 9, 1890. Constitution of $ 1, Act 106, July 13, 1898. § 6, ibid. Amended by Act 106, July 9, 1890, by extending the above provision to companies whose sleeping cars run over any line lying partly within this state and partly within another state or states. The matter of assessment is amended by the constitution and by act of 1898. Article 226 of the constitution adopted May 12, 1898, provides for the creation of a State Board of Appraisers, "whose duty it shall be to assess the property belonging to corporations, associations, and individuals employed in railroad, telegraph, telephone, and sleepingcar business." 1 Act 106, June 13, 1898, carries the above provision into effect. The board is to meet for purposes of assessment annually on the first Monday in September, at Baton Rouge, in the office of the auditor. The board is required to make "true and correct assessment" of the property belonging to the companies, and may adopt such rules and regulations as it may deem necessary for the purpose. The State Board of Appraisers assesses only that part of the property which is used in the operation of the railroad company, the attorney-general having advised the president of the said board as follows: "The form of expression in section 1 of Act 106 of 1898, page 153, designating the property which your board is appointed to assess, is rather awkward and somewhat cloudy. If the word used had been substituted for 'employed' it would have been clear that it was the province of your board to assess only such property as is used in railroad, telegraph, telephone, sleeping-car, and express business. If the word engaged had been substituted for 'employed,' it would clearly be within your power to assess all property belonging to corporations, associations and individuals engaged in railroad, telegraph, telephone, sleeping-car, and express business. "I think, however, that the word 'employed' as there used can not mean engaged, but that it means used. It is therefore my opinion that property belonging to corporations, associations, and individuals, not used or employed in railroad, telegraph, telephone, sleeping-car, and express business, should be assessed by the several local assessors; and that your board should only assess such property as is employed or used in the business." § 4, Act 106, July 13, 1898. § 5, ibid. § 1, ibid. § 6, ibid. The board has power to send for persons, books, and papers, examine records, summon and compel the attendance of witnesses, issue subpoenas and subpoenas duces tecum, compel production of records, books, and papers and other information necessary to the fulfillment of its duty. The sheriff is required to serve the process of the board. Refusing to obey subpoena or testify before the board is a misdemeanor subject to a fine on conviction of not less than fifty dollars and not more than one hundred dollars for each offense. Companies or individuals have the right to present to the board such evidence and argument as they may deem necessary, under reasonable delay and restrictions to be prescribed by the board. 3. Distribution of Values. In the nature of the case, the law antecedent to Act 106, July 13, 1898, calls for no distribution of assessed value. But by this act it is provided that the board shall make due returns to the different parochial and municipal authorities of the property assessed and its value in their separate jurisdictions.1 4. Determination of the Tax. Real estate, roadbed, road, iron track, superstructures, excavations, and channels, Act 85, July 12 are taxed in the parish where located. Act 106, July 9, 1890. This provision was amended by Act 106, July 9, 1890, providing the above property shall be taxed in the parish or assessment district where located. Other property is taxed at the domicile or principal office of the company. 1888; p. 800, § 29 Revised Laws, 1897. Ibid. 5. Remedies. § 7, Act 106, July 13, 1898. There are no specific provisions for remedies, pertaining directly to railroad companies, under the law prior to Act 106, July 13, 1898. That act, however, provides a remedy against wrong or mistaken assessment. The assessment of the State Board of Appraisers is to be final unless suit be brought for reduction. Such suit must be instituted against the Board of Appraisers, and service made upon the auditor or attorney-general in person, or service may be made upon any clerk in the office of the auditor of state. 1 The rule adopted by which the board apportion and distribute the values as assessed by them to the parochial and municipal authorities is as follows: They return to said parochial and municipal authorities such property as is in the territorial limits of the parish or municipality. This is true of all property except rolling stock, which is assessed in bulk at the domicile of the corporation. The law with regard to the place of taxation of railroad track, etc., and rolling stock, respectively, was made somewhat more definite than it had been, by Act 170, July 14, 1898, at section 29. This section reads: "Be it further enacted, etc., That the real estate, roadbeds, roads, iron, track, superstructures, excavations, and channels of railroads, canals, and other transportation or telegraph companies, shall be assessed and taxed in the parish or assessment district where located; and all other property not especially exempted from taxation by article 230 of the constitution belonging to said railroads, canals, etc., shall be assessed and taxed at the domicile or principal office of said railroads, canals, etc., as contemplated by article 273 of the constitution; but the rolling stock or movable property of any railroad company, telegraph company, canal company, or other transportation company, whose line lies partly within this state and partly within another state or states, or whose sleeping cars run over any line lying partly within this state or partly within another state or states, shall be assessed in this state in the ratio which the number of miles of the line within the state has to the total number of miles of the entire line." 9563-PT V-04—16 Ch. 6, § 41. Revised Statutes, 1883. MAINE. A. GENERAL CONSIDERATIONS. I. CONSTITUTIONAL LIMITATIONS. No special or peculiar constitutional rule modifies the taxation of railroads. The general provisions alone apply. II. GENERAL STATEMENT: SYSTEM AND DEVELOPMENT FROM 1890 TO 1900. Railroads are subject to a specific state tax on gross earnings, graduated according to earnings per mile of line, part of the proceeds being distributed to cities and towns in which stock is held. This tax is denominated an "excise tax." Railroads must also contribute their pro-rata shares, as determined severally by the amount of their gross earnings, to the salaries and expenses of the railroad commission and clerks. The local tax is somewhat limited, being restricted to certain real estate; it is provided that municipalities may tax the buildings of the railroad company within or. without the located right of way and lands and fixtures1 outside the located right of way as other property is taxed. For such purposes this property is to be regarded as nonresident land. In the period from 1890–1900 amendments were passed changing the time of the railroad returns and the year for which the same are made, providing that they shall follow the forms prescribed by the Interstate Commerce Commission, and changing the dates of the year for which the railroad's pro-rata share of the expenses of the railroad commission shall be made. These amendments are found in Act 6, January 30, 1891. Act 103, March 26, 1891, providing for the creation of a Board of State Assessors, provides that said board shall perform all the acts and duties previously required by law to be done by the governor and council relating to the assessing and taxing of railroads, etc., and that it shall assess all taxes upon corporate franchises. By Act 166, February 24, 1893, the rate of the gross-receipts, or excise, tax was increased. There is no specific provision for the taxation of sleeping-car or similar car or transportation companies.* B.—THE RAILROAD TAXES. I. THE "EXCISE TAX," OR TAX ON GROSS RECEIPTS. 1. Nature. This tax is a specific state tax, denominated an "excise tax." It is based on the gross receipts, revenue, or income from transportation and, together with the muni The term "fixtures," as used in these laws, includes all tangible property. 2 However, Act 174, March 12, 1901, imposes a franchise tax upon sleeping and palace cars. It provides: "Section 1. Every corporation or person owning or operating palace or other cars for which extra compensation is charged for riding therein over any of the railroads of the state shall, on the first day of September next, and annually thereafter, pay to the treasurer of the state for the state an annual excise tax for the privilege of exercising its franchises in the state, equal to four per cent of its gross earnings from business done wholly in the state of Maine for the year ending June thirtieth next preceding. "Section 2. Every such corporation or person shall by its properly authorized agent or officer, annually on or before the first day of August, make a return under oath to the board of state assessors, stating the amount of such gross earnings, whereupon the board of state assessors shall, on or before the fifteenth day of said August, assess the tax herein provided and forthwith certify the same to the treasurer of the state, who shall thereupon notify said corporations or persons, and said taxes shall be paid into the state treasury on or before the first day of September following. "Section 3. The tax assessed upon said corporations or persons as aforesaid is in the place of all local taxation upon the cars and equipment used in carrying on business in the state. "Section 4. Any corporation or person neglecting to make the returns according to section two of this act forfeits twenty-five dollars for every day's neglect, to be recovered by action of debt in the name of the state. "Section 5. The provisions of section sixty-eight of chapter six of the revised statutes, as amended, shall apply to the assessment and collection of the tax imposed by this act.” vised Statutes, cipal tax on buildings and real estate outside the located right of way, is declared to be in lieu of all taxes on such railroad, its capital and stock. The "annual excise Ch. 6, § 41, Retax" is declared to be "for the privilege of exercising its franchise within the state."1 1883. Though a state tax in name, it is not entirely so in effect, as the state is required to pay cities and towns one per cent on the stock held therein; provided, the total amount shall not exceed the sum received by the state as tax on such railroad, and provided, further, that there shall not be apportioned a greater part of the whole tax received from such railroad and its several parts than the proportion which the amount of capital stock of such railroad and its several parts in the state bears to the whole amount of capital stock of such railroad and its several parts. 2. Assessment and Determination of the Tax. The Railroad Commissioners are required to prescribe a form of report aimed to secure harmony in returns throughout New England. Every railroad corporation must, by December 1st, make an annual return to said commissioners of its operation for each year ending September 30th, verified by the oath of its treasurer, which return shall conform as nearly as practicable to the blank forms prescribed and furnished by the commissioners. Any railroad corporation willfully neglecting to make such return forfeits one thousand dollars to the state, to be recovered in an action on the case, or by complaint and indictment; and said commissioners must notify the attorney-general of such neglect, and he must prosecute for the recovery of such forfeiture. Ch. 6, Jan. 30, 1891. The above is so far amended by this act that the annual returns must cover the year ending June 30th, instead of September 30th, and must be made by September 1st, instead of by December 1st. The returns must be in the form of those made to the Interstate Commerce Commission for the year in which they are made, with such additions for any year as may be prescribed before the beginning of the year by the Railroad Commissioners of the state. Also, to aid the governor and council in this work but more particularly in dis- Ch.6, § 40, ibid. tributing the proceeds of the tax, the railroads must, between April 1st and 15th annually, return to the secretary of state, under the oath of its treasurer, the amount of the capital stock of the corporation, the number and par value of shares, a complete list of its shareholders, with their places of residence, and the number belonging to each on April 1st. Also, a statement of the whole length of the line, its length within the state, and the assessed value in each town of its stations and other property taxed by municipalities.. In case the returns be imperfect or insufficient, the Railroad Commissioners may call for further facts until the same are received, or in case of default, the governor and council may proceed upon the best information obtainable. For failure to return, or fraud in the same, by the officer certifying, the railroad company is subject to a forfeit of not less than one thousand and not more than ten thousand dollars, to be recovered by indictment, or an action in debt in any county in which the railroad operated extends. Ch. 5, § 46, ibid. The governor and council then proceed to divide the gross transportation Ch. 6, § 42, ibid. receipts for the preceding year, as returned to the Railroad Commissioners, by the 1 In Maine vs. The Grand Trunk Railway Company of Canada, 142 U. S., October term, 1891, this excise tax came under consideration of the United States Supreme Court. And it was held: that a state can levy an excise tax upon a railroad corporation for the privilege of exercising its franchises within the state; that the character of an excise tax levied upon a railroad corporation, or its validity, is not determined by the mode adopted in fixing its amount for any specific period or the times of its payment; that reference to the transportation receipts of a railroad company and to a certain percentage of the same in determining the amount of an excise tax upon the company is not in effect the imposition of the tax upon such receipts nor an interference with interstate and foreign commerce, although the railroad lies partly within and partly without the state. |