Houston Lighting & Power Co. v. Commissioner
United States Board of Tax Appeals
PUBLIC UTILITY - LIABILITY FOR TAXES. - Petitioner entered into a contract, prior to September 8, 1916, with the city of Houston, Texas, the object and purpose of which was to regulate, operate, and maintain a public utility. Under the terms of the contract, Federal income taxes were to be paid out of the proceeds from operation of the utility prior to any division of the proceeds between petitioner and the city.
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PUBLIC UTILITY - LIABILITY FOR TAXES. - Petitioner entered into a contract, prior to September 8, 1916, with the city of Houston, Texas, the object and purpose of which was to regulate, operate, and maintain a public utility. Under the terms of the contract, Federal income taxes were to be paid out of the proceeds from operation of the utility prior to any division of the proceeds between petitioner and the city. Held, that for the taxable years 1927 to 1930, both inclusive, petitioner is liable for the full amount of the tax levied on the entire undivided fund, under the provisions of…
1Opinion of the Court
*749OPINION.
ARNOLD:
The question presented in this case is whether certain amounts of petitioner’s net earnings in the taxable years which were subsequently paid over to the city of Houston, under the circumstances set out in our findings of fact above, are taxable to petitioner.
During the taxable years petitioner operated its public utility properties under a contract evidenced by an ordinance adopted by the city of Houston in 1915 and duly accepted by petitioner, which provided that all net earnings of petitioner in excess of operating-expenses, Federal and state taxes, depreciation, and other…
2Cases cited4 opinions
- Storm v. United StatesSupreme Court of the United States · 1877
- Chicago, Milwaukee & St. Paul Railway Co. v. United StatesSupreme Court of the United States · 1917
- Chicago, M. & St. P. Ry. Co. v. United StatesCourt of Appeals for the Ninth Circuit · 1914
- Underwood v. Texas & P. Ry. Co.Court of Appeals of Texas · 1915
3Cited by3 opinions
- Spingarn v. CommissionerUnited States Tax Court · 1948
- Houston Lighting & Power Co. v. CommissionerUnited States Board of Tax Appeals · 1936
- John W. Snow, Jr. v. CommissionerUnited States Tax Court · 1953