State Ex Rel. Hawkins v. Oklahoma Tax Commission

1969 OK 118, 462 P.2d 536, 1969 Okla. LEXIS 438
CourtSupreme Court of Oklahoma
DecidedJuly 29, 1969
Docket42952
StatusPublished
Cited by21 cases

This text of 1969 OK 118 (State Ex Rel. Hawkins v. Oklahoma Tax Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Hawkins v. Oklahoma Tax Commission, 1969 OK 118, 462 P.2d 536, 1969 Okla. LEXIS 438 (Okla. 1969).

Opinions

JACKSON, Justice.

The primary question for decision is whether the revenues derived from gasoline excise taxes levied by the provisions of 68 O.S.Supp.1967, Sections 502, 516, and 522, and apportioned in the same act for specific purposes by Sections 504, 519, and 523 (adopted in 1963), may be disbursed and payments made therefrom more than two and one-half years after the passage of the appropriation act.

The question arises by reason of a formal opinion of the Attorney General in response to questions presented to him by a member of the State Senate.

In his formal opinion the Attorney General concluded that Sections 504, 519, and 523, constitute appropriations by law within the meaning of Article 5, Section 55, Oklahoma Constitution, citing Edwards v. Childers, 102 Okl. 158, 228 P. 472, and no issue is made of that conclusion.

In answer to the primary question of whether these excise tax revenues may be disbursed and payments made therefrom more than two and one-half years after the passage of the act in 1963, the Attorney General concluded that no valid disbursements may be made following two and one-half years after the passage of the act in view of Art. 5, Sec. 55, Oklahoma Constitution, which provides:

“No money shall ever be paid out of the treasury of this State, nor any of its funds, nor any of the funds under its management * * * unless such payments be made within two and one-half years after the passage of such .appropriation act * *

This original action is brought by the State of Oklahoma, ex rel., L. G. Hawkins, [538]*538as plaintiff, against the Oklahoma Tax Commission and Leo Winters, State Treasurer, to prevent them from following the Attorney General's opinion and to compel them to apportion and pay all gasoline tax revenues as directed by the taxing and apportionment statutes above cited. We assume jurisdiction. State ex rel. Board of Education of City of Sapulpa v. State Board of Education et al., 197 Okl. 324, 170 P.2d 540; State ex rel. Babb v. Mathews, 134 Okl. 288, 273 P. 352; State ex rel. West v. Cobb, 24 Okl. 662, 104 P. 361, 24 L.R.A.,N.S., 639.

In State ex rel. Board of Commissioners of Harmon County v. Oklahoma Tax Commission, 191 Okl. 155, 127 P.2d 1052, and in Craig County Excise Board v. Texas-Empire Pipe Line Co., 195 Okl. 627, 159 P.2d 1003, we held in construing Art. 10, Sec. 19, Oklahoma Constitution, that gasoline excise taxes when collected and apportioned by statute for “constructing and maintaining county or township highways and permanent bridges in each county” could not be diverted to the general revenue funds of the state or county; and directed that the collected revenue from the gasoline tax be placed in the county highway funds for expenditure as directed by the statute which levied the tax and apportioned the revenue, even though more than two and one-half years had elapsed after the passage of the act.

In the Harmon County case the tax was levied and apportioned in 1937. Our decision was promulgated June 30, 1942, or five years after the passage of the act. In the Craig County case the tax appears to have been levied and apportioned in 1939, 68 O.S.1941, Secs. 659a and 659b. Our decision was adopted on July 3, 1945, six years after the adoption of the act. In the third paragraph of our syllabus in the Craig County case we held:

“Craig county of Oklahoma finances its county highways by means of a cash fund derived from excise taxes of the State of Oklahoma. At the close of the fiscal year of 1943-44 it had on hand in such fund a cash balance of $8,124.60. Held that such cash balance should be carried forward into the next fiscal year as .an asset of the county highway cash fund and should be available for expenditure.”

See also Application of Oklahoma Turnpike Authority, Okl., 359 P.2d 680, and Application of Oklahoma Turnpike Authority, Okl., 348 P.2d 510, wherein we held, among other things, that Oklahoma turnpike bond holders would have a vested right in certain gasoline tax revenue as it accumulates in the segregated Trust Fund pursuant to 69 O.S.Supp.1959, Secs. 680 and 683(a) and (b) without further or subsequent appropriations.

The inclusion of that part of Art. 5, Sec. 55, Constitution, supra, which provides that no money shall be paid out of the treasury of the State, unless made within two and one-half years after the passage of the appropriation act, was intended for some useful purpose. One useful purpose was to enable the Legislature to .ascertain at each biennial session the amount of surplus revenues that would be available for appropriation during the next biennium. In order to do so it was necessary to establish a terminal date upon the effectiveness of prior appropriations. This was especially true as applied to general fund appropriations from which the three branches or departments of government are financed. Art. 5, Sec. 56, Constitution. In 81 C.J.S. States § 162, at page 1205, it is said:

“General funds, available for general state purposes, which are deposited in the state treasury, are subject to constitutional requirements as to appropriations with respect to their disbursement, and this is true regardless of the source from which such funds are derived.” (Emphasis supplied.)

However, as to special funds apportioned or earmarked for special purposes, it is said (pages 1205 and 1206):

“While there is some authority holding that constitutional provisions as to appropriations apply to special funds, [539]*539* * * it is generally held that constitutional provisions as to appropriations do not apply as to special funds devoted to special purposes." (Citing cases from Kansas, Louisiana, Mississippi, Montana, Oklahoma, Texas, and Washington.) (Emphasis supplied.)

In the body of the opinion in State ex rel. State Aeronautics Commission v. Board of Examiners of State, 124 Mont. 402, 194 P.2d 633, 638, it was said:

“Is this fund subject to the provisions of section 12, Article XII of the Constitution to the effect that ‘no appropriation of public moneys shall be made for a longer term than two years’ and to the provisions of section 10, Article XII that ‘no money shall be drawn from the treasury but in pursuance of specific appropriations made by law’ and to the similar provision of section 34 of Article V. This court has repeatedly held that these sections of the Constitution have no application to special or trust funds which have never been placed in the general funds of the state.”

In the body of the opinion in Edwards v. Childers (1924), 102 Okl. 158, 228 P. 472, 477, after noting a distinction (p. 475) between that case and the case of Menefee v. Askew, infra, we said:

“Our attention is called to the provisions of article 5, § 55, of the Constitution, which provides that no money shall be paid out of the state treasury or any of its funds ‘unless such payments be made within two and one-half years after the passage of such appropriation act.’ It is urged that, under the provisions of the statutes under consideration, the appropriation of the fund so created continues as long as the act remains in force.

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Bluebook (online)
1969 OK 118, 462 P.2d 536, 1969 Okla. LEXIS 438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-hawkins-v-oklahoma-tax-commission-okla-1969.