Harvey v. Virginia

20 F. 411, 1884 U.S. App. LEXIS 2227
CourtU.S. Circuit Court for the District of Eastern Virginia
DecidedMay 12, 1884
StatusPublished
Cited by4 cases

This text of 20 F. 411 (Harvey v. Virginia) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harvey v. Virginia, 20 F. 411, 1884 U.S. App. LEXIS 2227 (circtedva 1884).

Opinion

Hughes, J.

The petitioners are wholesale grocers in the city of Bichmond. Their petition sets out, by reference and recital, the following facts:

By a recent act of tne assembly of Virginia, that of March 15, 1884, relating to assessments and licenses, petitioners are required to pay to the state a license tax of $504, for the privilege of carrying on their business for the year beginning on the first day of the present month. In pursuance of this law, petitioners paid to the collector of the city of Richmond the aforementioned sum of money, and duly received from the commissioner of revenue in Richmond a license to carry on their business. Under an act of assembly, commonly called the funding act, approved on the thirtieth of March, 1871, the state issued bonds, with coupons attached, which latter bear on their face the declaration of the state, that they shall be receivable, after they mature, for “all taxes, debts, dues, and demands due the state.” See acts of Assembly of 1870 and 1871, e. 282, § 2, p. 379.
Petitioners claim that this was a contract which entitled them to pay their license tax of $504 in coupons. They aver that they endeavored to obtain the benefit of this contract in the manner prescribed bj' the third section of another act of assembly of Virginia, viz., that relating to frauds upon the commonwealth, etc., approved January 14, 1882. See acts of Assembly of 1881-82, c. 7, § 3, p. 10. That is to say, they paid the $504 in money to the collector of taxes for Richmond, and at the same time tendered to that officer an equivalent amount of past-due coupons, coupling this tender with the request that he would take possession of the coupons and deliver the same to the judge of the hustings court of Richmond for identification and verification by a jury, as provided by the third section of the said last-named act, with a view to their being received by the state in payment of petitioners’ license tax, and to the return to them of the money ($504) which they had paid for their license. Petitioners aver that the collector refused to receive the coupons thus tendered, for this or any other purpose, and also refused to give petitioners a certificate in writing of their tender, as required by the third section of the last-named act; justifying his refusal by the terms of section 112 of the aforementioned act of assembly of Virginia, relating to the assessment of taxes and prescribing the mode of applying for licenses, approved March 15,1884, which forbids collectors from receiving aught but gold, silver, United States treasury notes, or United States national bank-notes for license taxes, in any case.
Petitioners, therefore, come into this court, and complain that the act of assembly of Virginia last named is repugnant to the tenth section of the first article of the constitution of the United States, which declares, among other things, that “no state shall pass any law impairing the obligation of contracts,” and is therefore unconstitutional, null, and void; and that by the [413]*413conduct of the collector of Biclimond, above described, they have been deprived (C a right thus secured to them by the constitution of the United States, ,o-wit, their right to pay the license tax aforesaid duo the state of Virgini i in coupons of the state. They accordingly ask the intervention of this cor efe, and pray that it will grant them the remedy furnished to tax-payers whc wish to pay their taxes in coupons by the aforesaid act of assembly of the ourteenth of January, 1882, by summoning the state before it, and impane ing a jury to identify and verify as genuine the coupons which they tendere I to the collector of Biclimond; and that this court, when such gen-uinene; s is shown, shall certify the fact to the proper officer of the state, and require the acceptance of the coupons in payment of the said tax and the return oi the $50-1 of money which they have paid to the collector.
Upoi motion, this court, by an order of the sixth instant, directed a rule to issue against the state, returnable to-day, reserving all questions of jurisdiction and the state now appears in the persons of the attorney general and of spec al counsel assigned by law for the purpose

On he merits of the case, I do not think there ought to be any different of opinion. Any pecuniary charge imposed by the government, ‘or the privilege of residence, or of holding property, or of exercising a calling, or engaging in a business, within its jurisdiction, is a tax. No refinements in lexicography, nor hypercriticisms upon the purpo-1 of words or phrases, can make such a charge anything else but a ax. There are taxes per capita levied upon persons exercising the pi ivilege of residence in a state. There are taxes ad valorem levied upon persons exercising the privilege of holding property in the st; be. There are license taxes levied upon persons exercising the privih ge of carrying on the business of merchants, or manufacturers, or oth >r callings. They are all essentially the same in their funda-menta l nature; they are a charge imposed by the state for the exercise o privileges, as a compensation to herself .for the protection which she affords by her laws alike to persons, to property, and to hones occupation. It is useless to say that such a charge is only a tax, w íen levied for the purpose of revenue; for there are such things as pr< hibitory taxes, the object of which is the opposite of revenue, which are taxes nevertheless. It is unavailing to refine upon such a subjet t. It is offensive, if not insulting, to the common sense of every candí l citizen to pretend that the charge which the state may see fit to im] ose on merchants for the privilege of carrying on their business is anything else than the commonplace thing which practical men call a tax. The right of residence, of holding property, of conducting a bus ness, may be a natural right, but the enjoyment of it under the prote< tion of law is a privilege granted by the state, and therefore, for si ort, I have called it a privilege. Nor is there any essential different o between a tax per capita, levied for the privilege of residence, a tax ad valorem, levied for the privilege of holding property, and a licent 3 tax, levied for the privilege of conducting a particular calling. And herefore, when a legislature, by statute, singles out the privilege c f carrying on trades, professions, and occupations, as has been done n the act of March 15, 1884, and requires a tax to be paid for [414]*414that privilege, and, instead of allowing it to be paid, as the state has, pledged her faith that all taxes may be paid, viz., with coupons, forbids such payment by the most positive and stringent prohibitions, and absolutely requires its payment exclusively in money, the evasion of the state’s obligation is manifest, the repudiation of its compact with the tax-payer tendering coupons is palpable, and tíre statute is unconstitutional so far as it prevents the payment of license taxes in verified coupons.

How can there be a rational doubt that the petitioners in this case had a right to pay their license tax in coupons after they had been identified and verified in the manner defined by law? They have been denied that unquestionable right; and therefore, on the merits alone, this case is a plain one for relief. The difficulty is the always important one in federal practice of jurisdiction. By the proceeding resorted to in the present case the state is summoned, in her sovereign character, before a federal court to answer a petition, on a week’s notice.

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Bluebook (online)
20 F. 411, 1884 U.S. App. LEXIS 2227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harvey-v-virginia-circtedva-1884.