MUNICIPAL CORPORATIONS - CONSTITUTIONAL LIMITATION ON INDEBTEDNESS - DELINQUENT TAXES AS DEDUCTIBLE ASSET

Plaintiff taxpayer sued to enjoin defendant city from borrowing $500,000 for general public improvements, alleging that if, the city so obligated itself it would be indebted beyond the limit fixed by the constitution at two per cent of the assessed valuation of taxable property. Defendant showed that such limit would not be exceeded if two-thirds of the outstanding delinquent taxes were regarded as deductible. The court denied the injunction and held that since collection of at least two-thirds of such outstanding delinquent taxes was certain this item was properly deductible. Ward v. Pittsburgh, 321 Pa.

414, 184 A. 240 (1936).