People ex rel. Smith v. Assessors of Ogdensburgh, 40 N.Y. 154 (1869)
Personal property, including debts owed on land contracts, held by an agent residing in a tax district on behalf of a non-resident principal is taxable in that district and may be assessed to the agent.
Summary
This case addresses the taxation of personal property held by agents on behalf of non-resident principals. The relators, as agents for a non-resident, possessed considerable personal property, including household items, cash, and land contracts. The assessors of Ogdensburgh assessed the agents for $30,000 of personal property. The relators challenged the assessment, arguing it should be struck from the roll. The Court of Appeals held that the assessment was proper, reasoning that personal property held by a resident agent is taxable within that jurisdiction, even if the owner is a non-resident. The Court emphasized that land contracts, representing debts, are personal property that can be taxed where the obligations are held.
Facts
The relators acted as sole general agents for George Parish, a resident of Bohemia. As agents, they possessed and controlled all of Parish’s real and personal property within the village of Ogdensburgh. This property included household furniture, cash in banks, and contracts for the sale of land. The town assessors had previously removed Parish’s personal property from the town assessment roll solely because of his non-resident status.
Procedural History
The village trustees assessed the relators, as agents, for $50,000 of personal property, which was later reduced to $30,000 after the relators objected. The relators sought a writ of certiorari to review the assessment. The lower court upheld the assessment. This appeal followed to the New York Court of Appeals.
Issue(s)
Whether personal property, including debts owed on land contracts, held by an agent residing in a tax district on behalf of a non-resident principal, is taxable in that district and properly assessed to the agent.
Holding
Yes, because personal property, including debts owed on land contracts, held by a resident agent for a non-resident principal is taxable in the district where the agent resides and can be assessed to the agent.
Court’s Reasoning
The Court reasoned that the village charter authorized the trustees to add property omitted from the town assessment roll to the village roll. The court determined that the general laws regarding taxation should govern the specifics of how property is assessed. Under these laws, all personal property within the state is liable for taxation. Section 5 of Title 2 explicitly states that every person shall be assessed in the town where they reside for all personal estate in their possession or control as agent. The Court emphasized that debts due on land contracts are considered personal estate and can be taxed where the obligations are held, not necessarily where the debtor resides. The court distinguished Chapter 371 of the Laws of 1851, stating it applies solely to taxation in towns, not villages, leaving the general law authorizing assessments to agents in force for villages. The Court found no error in assessing the agents for the personal property under their control, as the statute clearly permitted such assessment. The court stated: “Notes, bonds and other contracts for the payment of money have always been regarded and treated in the law as personal property. They represent the debts secured by them. They are the subject of larceny, and a transfer of them transfers the debt.”