CONSTITUTIONAL LAW - IMPAIRMENT OF OBLIGATION OF CONTRACTS -TAX ON INCOME OF BONDS GRANTED STATUTORY TAX EXEMPTION

Authors

Amos J. Coffman, University of Michigan Law SchoolFollow

Abstract

Plaintiffs were holders of certain tax exempt bonds issued under authority of the state of Iowa. After the issue of the bonds a statute was passed imposing a "personal net income tax" upon persons resident within the state. The state board of assessment and review assessed this tax against $36,892.75 interest on the tax exempt bonds. The appellants, alleging that such an application of the law impaired the obligations of contracts of exemption, brought suit. Upon a ruling in favor of the assessment by the Iowa Supreme Court, appellants appealed to the United States Supreme Court. Held, the contract of exemption was properly interpreted by the Iowa Supreme Court as not including the tax in question. Therefore the contractual obligation was not impaired. Hale v. Iowa State Board of Assessment and Review, 302 U.S. 95, 58 S. Ct. 102 (1937).

Recommended Citation

Amos J. Coffman, CONSTITUTIONAL LAW - IMPAIRMENT OF OBLIGATION OF CONTRACTS -TAX ON INCOME OF BONDS GRANTED STATUTORY TAX EXEMPTION, 36 Mich. L. Rev. 1377 (1938).
Available at: https://repository.law.umich.edu/mlr/vol36/iss8/10