Chicago, Burlington & Quincy Railroad v. Cole

Citations

• 75 Ill. 591

Syllabus

<p>1. Injunction — to restrain the collection of taxes. A court of equity will not entertain a bill to restrain the collection of a tax, except in cases where the tax is unauthorized by law, or where it is assessed upon property not subject to taxation, or where the property has been fraudulently assessed at too high a rate. In either of these cases an injunction will properly lie to restrain the collection of the tax.</p> <p>2. State board op equalization—power of courts to interfere with its action. It is not the duty of the courts to exercise any supervisory care over the valuations of property or franchises by the State Board of Equalization, so long as it acts within the scope of the powers with which it is invested, and in obedience to what may reasonably be presumed to be an honest judgment, however much the courts may disagree with it. But whenever the board undertakes to go beyond its jurisdiction, or to fix valuations through prejudice or a reckless disregard of duty, in opposition to what must necessarily be the judgment of all persons of reflection, it is the duty of the courts to interfere and protect the tax payers against the consequences of the act. When its jurisdiction is conceded, no mere difference of opinion as to the reasonableness of its valuations will justify equitable interference.</p> <p>3. Where a bill to enjoin the collection of the tax of a railway company charged that the State Board of Equalization assessed the capital stock of the company, including its franchise, beyond its actual value, and that, in making this assessment, they added to what they had determined the value of the capital stock, not only the indebtedness of the company, but also the indebtedness of six other railroad companies of which it was lessee, one of which lies without the State, for the payment of none of which the company was liable, such indebtedness of other companies so added being $6,756,000, and this latter fact was admitted by a demurrer, and the court