U.S. Supreme Court
Oklahoma v. Texas, 266 U.S. 298 (1924)
Oklahoma v. Texas
No. 13, Original
Argued November 17, 1924
Decided November 18, 1924
266 U.S. 298
1. A receiver appointed by this Court to conserve and operate private oil wells as an incident to an interstate boundary suit is not subject to a state occupation tax, laid on those who engage in producing oil, based on the market value of the oil produced. P. 266 U. S. 301.
2. But where the net proceeds of such operations by the receiver are in his hands ready to be paid over to the persons for whose chanroblesvirtualawlibrary
ultimate benefit the well were operated, and many of these have left the state or become insolvent during the receivership, so that collection by other means would be attended by embarrassment and loss, a timely petition of the state for payment of such taxes a taxes upon the several beneficiaries from the respective funds so derived and held by the receiver may equitably be granted. P. 266 U. S. 302.
3. Texas held entitled to payment of unpaid taxes laid under Art. 7383, Rev.Civ.Stats. of Texas, as amended, out of net fund derived by the receiver herein from his operation of private oil wells in Texas, each well to be treated as a separate unit in computing the taxes and making the payment, the tax as to each well to be computed on its full production during the receivership, payment in each case to be limited to the net balance on hand. Id.
4. As between owners of wells and lessees, the amounts so paid for taxes shall be charged against lessees. Id.
5. The petition of Texas for payment of additional taxes under Laws of 1917, c. 30, § 11, comes so late that it cannot equitably be allowed, since to grant it would require readjustment of many of the receiver's accounts, delay distribution of large funds in his hands, and be distinctly prejudicial to many claimants. Id.
Petition of the State of Texas that the receiver herein be directed to pay the gross production tax due under Art. 7383, Rev.Civ.Stats. of Texas, as amended, upon the oil produced in Texas during the receivership from wells in the hands of the receiver, and also a like tax under Laws of Texas, 1917, c. 30. See also 265 U. S. 265 U.S. 513, par. 4.