Potomac Electric Power Co. v. Prince George's County

PER CURIAM. The petitioner Potomac Electric Power Company brought this action in the Circuit Court for Prince George’s County, praying for “a decree declaring unlawful and unconstitutional the Ordinance and Resolution of the Prince George’s County Council taxing personal property at a different and higher rate than real property located in the County and for a permanent injunction restraining and enjoining the enforcement of the provisions of the Ordinance and Resolution.” (Appellant’s brief, p. 1.) Following a trial, the circuit court denied injunctive relief and issued a declaratory judgment upholding the validity of the County’s actions. Potomac Electric Power Company appealed to the Court of Special Appeals. Prior to any proceedings in that court, cross-petitions for certiorari were granted by us.

The questions presented in the petition and the brief of Potomac Electric Power Company are as follows (appellant’s brief, pp. 2-3): “1. In light of the public general laws of the State of Maryland requiring the enactment by counties of one, single tax rate for all property, are the Ordinance and Resolution of the County Council for Prince George’s County establishing a rate of tax for personal property different from, and higher than, the rate for real property in conflict with State law and, therefore, unlawful and of no force and effect? ¹⁸⁸ “2. In light of the facts (a) that the power of counties to tax is a delegated power which exists only when, and to the extent, granted by the State, and (b) that there is no grant of authority for charter counties such as Prince George’s County either to classify property for taxing purposes or to establish different rates of tax for different classes of property or partially to exempt real property from the county tax rate, are the Ordinance and Resolution of the County Council for Prince George’s County establishing different rates of tax for different classes of property ultra vires and beyond the powers granted to Appellee Prince George’s County? “3. In light of the fact that the Ordinance and the Resolution of the County Council of Prince George’s County authorize and establish a tax rate for personal property which is different from, and higher than, the tax rate for real propérty, may the County tax operating property improvements on land (which are classified by the State Department of Assessments and Taxation as real property and are, in fact and law, permanent fixtures on land and real property) at the higher rate pursuant to the purported authority of the Ordinance and Resolution? “4.

In light of the facts (a) that the foregoing Ordinance of the County Council for Prince George’s County was adopted as an emergency measure when no true emergency existed, and (b) that the title of the foregoing Ordinance of the County Council does not specify the intention to tax operating property improvements on land at a rate different from and higher than the rate for other real property, is the taxation of Appellant’s operating tangible personal property and its operating property improvements on land based upon invalid local legislative enactments? “5. Does Appellee’s taxation of operating tangible personal property and operating property improvements on land under the purported authority of local law deprive Appellant and others similarly situated of equal protection of the laws and of substantive and procedural due process ¹⁸⁹ of law in contravention of the provisions of the United States Constitution and the Declaration of Rights of the Constitution of Maryland?” During oral argument, in response to questions from the Court, the parties disclosed that the full amount of the taxes in dispute for the period in controversy were paid by the Potomac Electric Power Company to the County prior to the commencement of the trial in the circuit court. It was also represented that Prince George’s County officials had undertaken not to spend the disputed money until this case was terminated. A letter in the record from Potomac Electric Power Company to Prince George’s County suggests that some undertaking of this nature was made by a county official, although its precise nature and