People ex rel. New York Clearing House Building Co. v. Barker

the subject of taxation (People ex rel. Union Trust Co. v. Coleman, 126 N. Y. 433 ), and from the aggregate is to be deducted the assessed value of the real estate, and the balance is the capital subject to assessment, after deducting debts and any exemptions allowed by law. In assessing the capital of a corporation for the purpose of taxation it is immaterial in which description of property the capital may be invested. Both its real and personal property are to be considered and valued, and from the aggregate value is to be deducted the assessed value of the real estate, for the obvious reason that to that extent a separate taxation is provided. (People ex rel. Equitable Gas Light Co. v. Barker et al., 66 Hun, 21 ; affd. in this court in 137 N. Y. 544 .) In case of corporations it may happen that an undervaluation in the assessment of the real estate as such will be corrected in its valuation as part of the capital, and so the undervaluation may be remedied, and the whole property be subjected to taxation at its real value. The fact, therefore, that the assessed value of the relator’s real estate was $1,515,400 does not necessarily show that it was its full value, nor did it, we think, preclude the commissioners from estimating its value for the purpose of ascertaining the capital subject to taxation at its actual value, although it exceeded the assessed value. The act of the commissioners in undervaluing the real estate in its assessment as such did not estop the public nor relieve them of the duty, in ascertaining the value of the capital, to estimate the real estate at its full value. We are not here concerned with any question of inequality of assessment as between the relator and other taxpayers. We hold that the commissioners could legally disregard the assessed value of the real estate in estimating the value of the capital, and the question of legality is the only point now in question.” I have quoted quite at length from this case, because it seems to render any further discussion upon the point quite unnecessary. What is there said was intended by the court to be an authoritative and final exposition of the meaning of the statute, as is clearly shown by the final sentence, which sums up the discussion. The case is not overruled by The People ex rel. Manhattan Ry. Co. v. Barker ( 146 N. Y. 304 ). The court there objected to the particular manner in which the commissioners attempted to value the real estate, characterizing it as founded upon “ presumptions figured upon intricate

for the business of the N. T. Clearing House Association, and is not adapted for any other use, so that its market value is not equal to its cost; ” but no evidence was presented which indicated what the market value was claimed to be. The affidavit of the president of relator was also submitted, which reiterates this statement, and adds that “ in view of the absence of any general market value for a building not fitted for other than a single use, the said building has been properly assessed for taxation at not over $600,000.” It is claimed by the relator that, under the admissions of the return, the commissioners were bound to accept the whole of this statement as a limitation of actual value at the sum of $600,000. The return, however, expressly excepts from the admission “ the claim and allegation that the market value of the real estate of the relator was not equal to its cost,” and asserts that the contrary was true. It will be observed that the statements of the relator upon the subject are largely argumentative in their nature. Because of the nature of the property, it is claimed that the market value of the property is less than the cost, and for the same reason the assertion is made, not that the property is worth only $600,000, but “ has been properly assessed for taxation at not over $600,000.” Nowhere does the relator undertake to fix the actual value at any specific sum. The question was, therefore, fairly open to determination by the commissioners. They had before them elements tending to support the valuation which they affixed to the property ; and assuming the absence of a standard of market value, which the relator asserts was the case, it was within their competency to consider the cost as furnishing a guide to a result. They certainly were not bound to adopt the mere conclusions or opinions of the relator, especially as the basis of valuation upon which it insists would import an impairment of its capital of more than fifty per cent. I do not think, therefore, that the action of the commissioners can be characterized as either capricious, arbitrary or unjust, so as to call for any interference with their action by the court. The case is quite different from that of The People ex rel. Subway Co. v. Barker ( 7 App. Div. 27 ). There were circumstances of aggravation there which are without any counterpart in the case at bar, and which make the disposition of that case inapplicable here. It follows from what has been said that the writ must be dismissed, with costs.