Campbell v. Wilkins Township

Citations

• 273 Pa. 204
• 116 A. 823
• 1922 Pa. LEXIS 548

Syllabus

<p>Municipalities — Townships—Indebtedness—Bonds—Limit of indebtedness — Bonds issued without deduction for taxes — Acts of April 28, 1915, P. L. 195, and March 17, 1921, P. L. 36 — Constitution, article IX, section 10 — Taxation—Debt.</p> <p>1. If a township authorizes an issue of bonds and covenants in the bond that it will pay the state tax thereon, it must assess a tax sufficient within thirty years to pay not only the principal and interest of the bonds, but also the amount of the state tax, which it has agreed to pay, to comply with the Acts of April 28, 1915, P. L. 195, and March 17, 1921, P. L. 36.</p> <p>2. The contract to assume the state tax creates a definite charge against the township, and is a debt within the meaning of the constitutional restriction, article IX, section 10.</p> <p>3. A premium offered by the purchaser of the bonds cannot be considered in determining whether a sufficient sum had been provided to make repayment where it appears that the total so advanced is not sufficient to make up the deficiency.</p> <p>4. Nor is the township helped by a transfer temporarily from general township funds of an amount to meet the first interest accruing, where it appears that such payment was a mere loan to be returned to the township treasury.</p>