Citizens Water Co. v. Commissioner
United States Board of Tax Appeals
Net income of a private corporation, operating water works under contract with a city, is not exempt from tax under section 116(d) of the Revenue Act of 1928 by reason of municipal ownership of part of corporation's stock and bonds, even though the city has a right under the contract to acquire ownership of the water works by purchasing the outstanding capital stock at par.
1Opinion of the Court
*752OPINION.
Artjndell:
The sole issue presented for our decision is whether the entire net income of petitioner is exempt from Federal income tax under the provisions of section 116 (d) of the Revenue Act of 1928, which provides as follows:
*753In addition to the items specified in section 22 (b), the iollowing items shall not be included in gross income and shall be exempt from taxation under this title:
***** * *(d) Income of States, municipalities, etc. — Income derived from any public utility or the exercise of any essential governmental function and accruing to any State, Territory, or the District…
2Cited by7 opinions
- Troy State University v. CommissionerUnited States Tax Court · 1974
- City of Burlington v. United StatesCourt of Appeals for the Eighth Circuit · 1945
- Bear Gulch Water Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Citizens Water Co. v. CommissionerUnited States Board of Tax Appeals · 1935
- Citizens Water Works, Inc. v. CommissionerUnited States Board of Tax Appeals · 1935
2 more not listed; retrieve them via the Exa API.