Hon. Sam G. Reams 

County Attorney 

Brooks County 

Falfurrias, Texas 

Opinion No. O-4202 

Re: Taxation of personal property of 

a State banking corporation. 

Dear Sir: 

We acknowledge 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 and Trust Company Is a bankrng .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$3 head 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 propert 

f 

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 and real 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 some other 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 

and residence of each shareholder, and the number 
Hon. Sam G. Reams, page 2 (o-4202) 

and amount of shares owned by 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 owned by 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 means of taxing property belonging to a 

banking corporation. The bank is first required to f lie a list 

oft all proprty and- then .file. a list showing the number and amount 

of shares there are 4.n said bank and the names of the .shareholders, 

together with the number and amount of the shares owned by each. 

The shareholder Is then required to render hi,s shares for taxation at their actual value, and upon a failure to render the assessor shall render the shares and .place them on 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. 9990 City of MarshalL v.’ State Bank of Marshall, 

127 S.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 San Antonio Loan and Trust Company to 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 

FIRST ASSISTANT ATTORNEY GENERAL. 

iPPiOvED: OPINION CiOMMiTTEE 

BY: BWB, CHAIRMAN. 

Yours very ‘t&y 

ATTORNEY GENERAL OF TEXAS 

By /s/ Richard H. Cocke 

Richard H.. Cocke, Assistant 

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