Jetton v. University of the South

Citations

• 208 U.S. 489
• 28 S. Ct. 375
• 52 L. Ed. 584
• 1908 U.S. LEXIS 1460

Syllabus

<p>Although all the parties to this action are citizens of the' same State the. Circuit Court of the United States had jurisdiction because the case arises under the Constitution of thé United States, as complainant insists, that the tax sought to be restrained is imposed under a state statute that impairs the obligation of a legislative contract for exemption from taxation.</p> <p>A charter - exemption from taxation of land and buildings to be erected thereon -so long as they belong to the educational institution exempted does not exempt from taxation the separate interests of parties to whom the institution leases portions of the property,.and who erect buildings thereon; and a subsequent act of the legislature taxing such separate leasehold interest does not amount to taxing the property owned by the institution, and -is not unconstitutional under the contract clause of the Constitution of the United States as impairing the obligation of the exemption provision in the charter. ■ So held as to the act of Tennessee of 1903. . •</p> <p>This court while not bound- by the construction planed on a state statute by the state court, as to whether a contract was created thereby, and if so how it should be construed, gives to such construction respectful consideration, and unless plainly erroneous generally follows it;'a decision of the state court, however, that a leasehold interest in exempted property cannot, during the exemption, be taxed against the owner of the fee, ■ is not authority to be followed by this court, on the proposition that, the leasehold interest cannot be taxed without impairing the obligation1 if the contract of exemption against the lessee in his own name and again it his particular interest in the land.</p> <p>A charter exemption from taxation cannot be extended simply because it would, as so' construed, add value to the exemption; and an exemption from taxation of property belonging to an institution,- so long as it be- . longs thereto, will not b