Department of Treasury v. City of Evansville

This case involves the liability of the city for the payment of gross income tax upon income derived from certain activities and the decision depends upon whether or not the activities are private or proprietary within the meaning of the 1937 amendment to the Gross Income Tax Act. Originally the Gross Income Tax Act levied a tax upon the entire gross income of every “person” engaged in any business or activity, with certain exceptions not here involved, and defined the term “person” to include municipal corporations. The 1937 amendment changed the definition of “person” to read as follows:

“Whe…