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most statutes against frauds being penal. But this difference is to be taken: Where the statute acts upon the offender and inflicts a penalty, as the pillory or a fine, it is then to be taken strictly; but when the statute acts upon the offense, by setting aside the fraudulent transaction, here it is to be construed liberally.”l Revenue laws are intended to raise money for the support of the government. If they contain provisions for penalties and forfeitures these are ancillary to that object; but they are not for that reason to be necessarily construed in point of strictness by the same rule. As penal laws, no reason is perceived why the same rule of strict construction should not be applied to them as to other such laws. Mr. Dwarris remarks that, “ By the use of ambiguous clauses in laws of that sort the legislature would be laying a snare for the subject, and a construction which conveys such an imputation ought never to be adopted. Judges, therefore, where clauses are obscure, will lean against forfeitures, leaving it to the legislature to correct the evil, if there be any. With this view, the ship registry acts, so far as they apply to defeat titles and to create forfeitures, are to be construed strictly, as penal, and not liberally, as remedial, laws. In like manner, in the revenue laws, where clauses inflicting pains and penalties are ambiguously or obscurely worded, the interpretation is ever in favor of the subject; ‘for the plain reason,' said Heath, J., in Hubbard v. Johnstone, “that the legislature is ever at hand to explain its own meaning, and to express more clearly what has been obscurely expressed." " 2

$ S 362. Statutes which impose burdens — Taxes.- Acts for taxation of persons or property are prominent in this category. 11 Bl. Com. 38.

forfeiture of property for the mere in23 Taunt. 177; Dwarris on St. 641. dulgence of a fraudulent intent never Mr. Cooley thus comments on this carried into effect; a forfeiture, too, point: “In the state revenue laws the which may be visited upon a purpenal provisions are few, and by no chaser who has bought in good faith, means severe. In the federal revenue and without any suspicion of the inlaws some of them are of a severity tended fraud. Henderson's Distilled very seldom to be met with in penal Spirits, 14 Wall. 44. If such provisstatutes, and only to be justified by the ions are to be construed liberally, there supposed impossibility of collecting is no reason why any other penal the revenue without them. In illus- provisions whatever should not be." tration of what is here said, reference Cooley on Taxation, 208. need only to be made to the case of

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power to tax is sovereign, and its exercise needful to supply the government with money necessary for its support. When limited to the accomplishment of this object it is beneficent, but since it is so unlimited in force and so searching in extent that courts recognize no restrictions except such as rest in the discretion of the authority which exercises it; since it reaches to every trade and occupation, to every object of industry, use or enjoyment, to every species of possession, and imposes a burden which in case of failure to discharge it may be followed by summary seizure and sale or confiscation of property; since no attribute of sovereignty is more pervading or affects more constantly and intimately all the relations of life,' and involves the power to destroy, and may neutralize

, , the power to foster and create, statutes enacted in the exercise of the taxing power are construed with some degree of strictness. It is a special authority, and in its exercise the citizen is deprived of his property. However meritorious the purpose for which such a power is granted, the courts will be sedulous in confining it within the boundaries the legislature have thought fit to prescribe. The supreme court of New Jersey say: “In laying the burden of taxation upon the citizens of the state, while it must be the object of every just system to equalize this charge by a fair apportionment and levy upon the property of all, it is equally the duty of the courts to see that no one, by mere technicalities which do not affect his substantial rights, shall escape his fair proportion of the public expense and thus impose it upon others. A liberal construction must therefore be given to all tax laws for public purposes, not only that the officers of the government may not be hindered, but also that the rights of all taxpayers may be equally preserved.” 4 “If it be a matter of


Cooley on Const. Lim. 479; Litch- author is apposite, and expresses the field v. Vernon, 41 N. Y. 123, 140, 143; law with felicity and accuracy: “In Henry v. Chester, 15 Vt. 460. the construction of the revenue laws

2 McCulloch v. Maryland, 4 Wheat special consideration is of course to 431.

be had of the purpose for which they 3 Powell v. Tuttle, 3 N. Y. 396, 401; are enacted. That purpose is to supSherwood v. Reade, 7 Hill, 431; Striker ply the government with a revenue. v. Kelly, 2 Denio, 323.

But in the proceedings to obtain this 4 State v. Taylor, 35 N. J. L. 184, it is also intended that no unneces190. The language of a distinguished sary injury shall be inflicted uron

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real doubt,” said Mr. Justice Story, “whether the intention of the act of 1841 was to levy a permanent duty on indigo, that doubt will absolve the importer from paying the duty.”

In Gurr v. Scudds, Pollock, C. B., says: “If there is any doubt as to the meaning of the stamp act, it ought to be construed in favor of the subject, because a tax cannot be imposed without clear and express words for that purpose.” This seems to be the tenor of all the English decisions, that every charge on the subject must be imposed by clear and unambiguous words.3 In a late case before the house of lords 4 it was said:


the individual taxed. While this that the citizen might know exactly secondary to the main object — the what were his duties and liabilities. impelling occasion of the law — it i A strict construction in such cases is none the less a sacred duty. Care is reasonable, because presumptively taken in constitutions to insert pro- the legislature has given in plain visions to secure the citizen against terms all the power it has intended injustice in taxation, and all legisla- should be exercised. It has been tive action is entitled to the presump- very generally supposed that the like tion that this has been intended. We strict construction was reasonable in are therefore at liberty to suppose the case of tax laws." Cooley on that the two main objects had in Taxation, 199, 200; Dwarris on Statview in framing the provisions of any utes, 742, 749. tax law were, first, the providing a TUnited States v. Wigglesworth, public revenue, and second, the secur- 2 Story, 369, 374. ing of individuals against extortion 2 11 Ex. 190, 192. and plunder under the cover of the 3 Wroughton v. Turtle, 11 M. & W. proceedings to collect the revenues. 561, 567; Williams v. Sangar, 10 East, The provisions for these purposes are 66, 69; Warrington v. Furbor, 8 id. the important provisions of the law. 242, 245; Denn v. Diamond, 4 B. & C.

The question regarding the 243; Doe v. Snaith, 8 Bing. 146, 152; revenue laws has generally been Tomkins v. Ashby, 6 B. & C. 541, 543; whether or not they shall be con- Marquis of Chandos v. Commissionstrued strictly. The general rules ofers, 6 Ex. 464, 479; Oriental Bank v. interpretation require this in the case Wright, L. R. 5 App. Cas. 842; Pryce of statutes which may divest one of v. Monmouthshire Canal & Ry. Co. his freehold by proceedings not in the L. R. 4 App. Cas. 197; Reg. v. Barclay, ordinary sense judicial, and to which L. R. 8 Q. B. Div. 306; Daines v. Heath, he is only an enforced party. It is 3 C. B. at p. 941; Gosling v. Veley, thought to be only reasonable to in- 12 Q. B. at p. 407; Caswell v. Cook, tend that the legislature, in making 11 C. B. (N. S.) 637; Burder v. Veley, provision for such proceedings, would 12 Ad. & E. at p. 246; Atty-Gen. v. take unusual care to make use of Middleton, 3 H. & N. at p. 138; Iles terms which would plainly express v. West Ham Union, L. R. 8 Q. B. Div. its meaning, in order that ministerial 69; In re Micklethwait, 11 Ex. 452. officers might not be left in doubt in 4 Partington v. Att'y-Gen. L. R. 4 the exercise of unusual powers, and H. L. Cas. 122.



“The principle of all fiscal legislation is this: If the person sought to be taxed comes within the letter of the law, he must be taxed, however great the hardship may appear to the judicial mind to be. On the other hand, if the crown, seeking to recover the tax, cannot bring the subject within the letter of the law, the subject is free, however apparently within the spirit of the law the case may otherwise appear to be. Inother words, if there is admissible in any statute what is called an equitable construction, certainly such a construction is not admissible in a taxing statute, where you can simply adhere to the words of the statute."

§ 363. The American cases generally announce the same rule of construction. Duties, says Mr. Justice Nelson, "are never imposed upon the citizen upon vague or doubtful interpretations." Statutes which impose restrictions upon trade or common occupations, or which levy an excise or tax upon them, must be strictly construed. A statute conferring authority to impose taxes must be construed strictly. A tax law cannot be extended by construction to things not named or described as the subjects of taxation. A statute required taxes for school purposes to be levied on all the ratable estate of persons who are residents of the district; it authorized an executor to put the property of the estate in the list in the name of the estate. It was held that the ratable estate of the deceased pending administration might be assessed in the district where the deceased lived and died. The court say: “The greatest and perhaps the only objection that can be urged against this rule is, that we cannot say in strictness that the deceased or his estate is a resident of the district. This objection assumes that the statute is to be strictly construed. But we do not think that the doctrine of strict construction should apply to it. Statutes relating to taxes are not penal statutes,

Powers v. Barney, 5 Blatchf. 202, Carter, 2 Kan. 115; Bensley v. Moun203; United States v. Wigglesworth, tain Lake Water Co. 13 Cal. 306, 316. 2 Story, 369, 373; United States v. 2 Sewall v. Jones, 9 Pick. 412, 414. Watts, 1 Bond, 580, 583; Vicksburg, 3 Moseley v. Tift, 4 Fla. 402; Willetc. R. R. Co. v. State, 62 Miss. 105; iams v. State, 6 Blackf. 36: Barnes v. Mayor v. Hartridge, 8 Ga. 23; Crosby Doe, 4 Ind. 132, 133; Smith v. Waters, V. Brown, 60 Barb. 548; Dean v. 25 Ind. 397; Fox's Appeal, 112 Pa. St. Charlton, 27 Wis. 522; Shawnee Co. v. 337.

4 Boyd v. Hood, 57 Pa. St. 98, 101.

nor are they in derogation of natural rights."! That case seems to have been properly determined, and did not require a denial that tax laws are to be strictly construed. The law expressly allowed the listing of the decedent estate in the name of the deceased person's estate, and therefore the levy of a tax on such a resident as such an “intangible being" could be. The court was in accord with the general current of authority in concluding that in construing statutes relating to taxes they “ought, where the language will permit, so to construe them as to give effect to the obvious intention and meaning of the legislature, rather than defeat that intention by too strict an adherence to the letter.” ? A statute to re-assess a void tax will be construed strictly. Such a statute is in derogation of the rights of the citizen who may be affected by it; it compels him to bear a burden which he would not have to bear but for

a it. A due regard for individual rights and the plainest principles of justice requires that taxing statutes shall have only the effect which the legislature clearly intended; in construing

em all reasonable doubts as to such intent should be resolved in favor of the citizen. Every statute in derogation of the rights of property or that takes away the estate of the citizen ought to be construed strictly. It should never have an equitable construction. Statutes providing for redemption of lands sold for taxes should be construed liberally.”

§ 364. Exemption from taxation or other general burden.-- Not only is all legislation for taxation, but also for exemption from taxation, or any other common burden or liability, to be strictly construed. The principle is well settled that the power of exemption, as well as the power of taxation, is an essential element of sovereignty, and can only be surrendered or diminished in plain and explicit terms.6

1 Cornwall, Ex’r, v. Todd, 38 Conn. Bloomington, 106 Ill. 209; S. C. 5 Am. 443.

& Eng. Corp. Cas. 535; Lima v. 2 See 3 Parsons on Cont. 287. Cemetery Asso. 42 Ohio St. 128; S. C. 3 Dean v. Charlton, 27 Wis. 522. 5 Am. & Eng. Corp. Cas. 547; Mayor,

4 Sharp v. Speir, 4 Hill, 76, 83; Van- etc. v. Central R. R. etc. Co. 50 Ga. horne's Lessee v Dorrance, 2 Dall. 620; Gale v. Laurie, 5 B. & C. 156; 304; Sibley v. Smith, 2 Mich. 486, 490. Buffalo City Cemetery Co. v. Buffalo,

5 Alter v. Shepherd, 27 La. Ann. 207. 46 N. Y. 506; State v. Bank of Smyrna,

6 Probasco Co. v. Moundsville, 11 2 Houst. 99; Willis v. R. R. Co. 32 W. Va 501; McLean County v. Barb. 398; Orr v. Baker, 4 Ind. 86;


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