Hon. SamG. Reams

County Attorney Brooks County Falfurrias, Texas Opinion No. O-4202 Re: Taxation of personal property of a State banking corporation. Dear Sir: Weacknowledge receipt of your request for an opinion of this department with reference to the above subject.

‘Your request reveals the‘facts to be that the San *

. Antonio Loan andTrust CompanyIs abankrng .corporatlon, organized under the laws of the- State of Texas. That they are the owners of about Pj,OOO acres of land and 1,00$3head of cattle, all located In Brooks County, Texas. That the Brooks County Tax Collector -maintains that the cattle should be taxed in Brooks County, while the bank contends that they are a part of -the capital assets and the tax thereon should be paid in Bexar County, the home.offlce.

These cattle constitute a part of the personal propertf of the banking corporation snd Article 71.65, Revised Civil Sta utes, 1925, provides in part as follows:

”

. . . 4. All other banks

. . . shall render their lists in the following manner: . . .

“(5) All other property belonging or appertaining to. said bank or business Including both personal property and real estate, shall be listed as other personal property andreal estate.” Artlcie 7166, Revised Civil Statutes of 1925, provide.sr nEvery banking corporation

. . . shall

. . . render its real estate to the tax assessor at the time and in the manner requ&red of individuals. At the time of making.-such-rendition the president or someother officer of said bank shall file with said assessor the Worn statement showing the number and amount of the shares of said bank, the name andresidence of each shareholder, andthe numberHon. SamG. Reams, page 2 (o-4202)

and amount of shares ownedby him. Every sharehol.der of‘.said bank, shall, in the city or town where said bank is located, render at their actual value to the tax assessor all shares ownedby him In such bank; and In case of his-failure so to do, the assessor shall assess such unrendered shares as other uurendered property. Each share in such bank shall be taxed only for the difference between Its actual cash value. and.the .proportfonate amount per stare at which its real estate, Is assessed.

.,. .Thi purpose of these two provisions if our statutes is to provide a convenient meansof taxing property belonging to a banking corporation. The bank is first required to flie a list oft all proprty and-then .file. a list showing the number and amount of shares there are 4.nsaid bank and the namesof the .shareholders, together with the number andamount of the shares ownedby each. The shareholder Is then required to render hi,s shares for taxation at their actual value, andupon a failure to render the assessor shall render the shares and.place themon the unrendered rolls. . ‘

. The effe+ of the& stat&es 1s to require the. banking corpor’atlon to pay t-es on.a11 of its real estate and the- shsrehold’ers .to pay the; taxes on the. personal property. Engelke v. Shlenker, 12 S. 

### W. 

### 9990City of MarshalL v.’ State Bank of Marshall, 

### 127S.W. 1083. It follows that a State bank is not liable for the taxes on Its personal -property.*.

You &e thererore advised that- Brook2 County. c¬ ‘require SanAntonio Loan andTrust Companyto pay taxes on the 1,000 head of cattle located in,.that county.

_ . . _

. . Trusting that the fo&goihg fully answers your inquiry, we are APPROVED

DEC. 

### 9 1941,. /s/ Grover &l&s FIRSTASSISTANTATTORNEY GENERAL. iPPiOvED: OPINIONCiOMMiTTEE BY: BWB,CHAIRMAN. Yours very ‘t&y ATTORNEY

GENERAL

OFTEXAS By /s/ Richard H. Cocke Richard H..Cocke, Assistant

RHC:db:wb