First Baptist Church of St. Paul v. City of St. Paul

Summary

The Minnesota Supreme Court held that the City of Saint Paul’s annual right-of-way assessment was imposed under the taxing power rather than the police power and therefore constituted a tax subject to constitutional restrictions. The court further held that whether the assessed properties received a special benefit, and the amount of any such benefit, presented genuine issues of material fact precluding summary judgment. The court reversed and remanded.

Holdings

1. Saint Paul's right-of-way assessment was imposed as an exercise of the City's taxing power and was therefore a tax, not a police-power fee.
2. Because the right-of-way assessment was a tax and special assessment, it was subject to constitutional restrictions on taxation, including uniformity requirements and the requirement that the assessment not exceed the special benefit conferred on the assessed property.
3. Summary judgment for the City was improper because the record contained a genuine issue of material fact concerning the amount of special benefit, if any, conferred on the Churches' properties by the right-of-way services.

Questions Presented

1. Whether Saint Paul's annual right-of-way assessment was a tax imposed under the City's taxing power or a fee imposed under its police power.
2. If the assessment was a tax, whether constitutional restrictions on special assessments, including the special-benefit requirement, applied.
3. Whether the record presented a genuine issue of material fact concerning the amount of special benefit, if any, conferred on the Churches' properties, thereby precluding summary judgment.

Disposition

reversed_and_remanded