Jack v. Weiennett

Citations

• 115 Ill. 105
• 3 N.E. 445

Syllabus

<p>1. Taxation—a tax defined, and as distinguished from, an ordinary debt—paramount character of claim for taxes. Taxes are an enforced personal contribution of persons and property, levied by authority of the State, for the support of the government and for all public needs.</p> <p>2. A tax is not a debt, in the ordinary sense of that word. The State may distrain and sell property for a tax, if not paid when demanded, without first obtaining a judgment, and as between it and creditors of the person owing the tax the State is entitled to a preference. The claim of the government for the payment of taxes upon the citizen is paramount to all other claims and liens against his property.</p> <p>3. The constitution requires that the General Assembly shall provide such revenue as shall be needed, by levying a tax by valuation, so that every person and corporation shall pay a tax in proportion to the value of his, her or its property. To enforce this provision it is indispensable that the tax shall have priority in right of payment over individual debts.</p> <p>4. Same—taxation and the insolvent laws—rights of assignee and purchasers. Where an insolvent debtor makes an assignment of his property for the benefit of his creditors, even before the tax books are placed in the hands of the collector, the State will still have the right to subject the property assigned, for the payment of any taxes due from the assignor; and when the property assigned consists of notes and choses in action, the collector, on proper petition to the county court, will be entitled to an order of that court directing the assignee to first pay the taxes of the assignor out of the trust fund.</p> <p>5. If, however, property assigned for the benefit of creditors is sold in good faith to a purchaser before the tax books come to the hands of the collector, so that no lien has as yet attached, the purchaser will take free of any lien for taxes. But tangible property in the hands of the assignee after the