Messrs. Charles Scott and Robert H. Thompson, both of Jackson, Miss., for plaintiff in error.
Messrs. Garner W. Green and William H. Watkins, both of Jackson, Miss ., for defendant in error.
Mr. Justice McREYNOLDS delivered the opinion of the Court.
Millsaps College is an educational institution, not operated for profit. It was incorporated by a special act of the [275 U.S. 129, 130] Mississippi Legislature approved February 21, 1890 (Laws 1890, c. 379) which contains, among others, the following provisions:
The incorporators and their successors, under the name of Millsaps College, 'may accept donations of real and personal property for the benefit of the college hereafter to be established by them, and contributions of money or negotiable securities of every kind, in aid of the endowment of such college.'
Two improved pieces of land on Capitol street, in the city of Jackson, were donated to the corporation, as recited by the deeds of conveyance, 'in consideration of the aid thereby to be given to the endowment of Millsaps College.' They constitute no part of the 'building site and campus' and are carried on the productive endowment account at proper valuations. The buildings are rented [275 U.S. 129, 131] and the revenue derived therefrom is used to defray operating expenses of the college and for no other purposes.
The city assessed the lots and buildings for taxation. By the present proceeding the college seeks to vacate the assessment. It asserts exemption of the property by the act of 1890 and claims that the later general taxing act, if applied thereto, would impair the obligation of the contract contrary to section 10, article 1, federal Constitution.
The Supreme Court of Mississippi said (136 Miss. 195, 101 So. 574):
And the court accordingly concluded that the statutory exemption in respect of real estate was intended to extend only 'to the lands for grounds, not to exceed one hundred acres, used by the corporation as a site and campus for said college, and the buildings, halls and dormitories thereon erected.'
The jurisdiction of this court is questioned. But the validity of the general taxing act of the state, said to be subsequent to the incorporation, was challenged below upon the ground that if construed to subject the lots in question to taxation, it would impair the obligation of the contract, and under section 344, title 28, U. S. C. (28 USCA 344; Comp. St. 1214), the cause is subject to review here.
While in cases like this 'we form our own judgment as to the existence and construction of the alleged contract, and are not concluded by the construction which the state court has placed on the statute that forms such contract, yet we give to that construction the most respectful consideration and it will in general be followed, unless it seems to be plainly erroneous.' Also, we think, the rule as to the construction of statutes of exemption from taxation should be applied, and where there is room for reasonable doubt as to total or only partial exemption, the latter alone should be recognized. Great weight attaches to the decision of a state court regarding questions of taxation or exemption therefrom under the constitution or laws of its own state. Jetton v. University of the South, 208 U.S. 489, 499 , 28 S. Ct. 375; Chicago Theological Seminary v. Illinois, 188 U.S. 662, 674 , 23 S. Ct. 386.
Applying the doctrine approved by the cases cited, we accept the interpretation placed upon the act of incorporation by the Supreme Court of the state and affirm the challenged judgment.