Wright v. Louisville & Nashville R. Co., 236 U.S. 687 (1915)

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Wright v. Louisville & Nashville Railroad Company

No. 162

Argued January 29, 1915
Decided March 22, 1915
236 U.S. 687

CERTIORARI TO THE CIRCUIT COURT OF APAPEALS

FOR THE FIFTH CIRCUIT

Syllabus

Wright v. Central Ry. of Georgia, ante, p. 674, followed to effect that, under the statutes of Georgia and the leases involved in this action, executions for ad valorem taxes on railroads the owners whereof were exempted by statute from a greater tax than a specified percent on the income, could not be enforced against those in possession of the railroads as lessees.

The fact that owners of a railroad, who are exempted by statute from paying a greater tax than a specified percent on the income thereof, lease the entire road to another company does not open the right of the state to tax such lessees on the fee of the property.

In this case, the exemption of the lessor from taxation on its road which it has leased applies to betterments and improvements made by the lessee such as the lessor would have made to meet enlarging business and so also as to rolling stock substituted for that of the lessor and which under the lease belongs to the lessor.

Railroad property jointly used with exempted property but not part of the road originally exempted may be subject to assessment, but not in one assessment covering both the classes of property.

201 F. 1023 modified and affirmed.

The facts are stated in the opinion.