The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-09-22

the United States certain duty or tax on their
average circulation, deposits and capital stock
as therein stated with the following provisos:
g. Prociaed That nothing In this act shall be
construed to prevent all the shares in any of
the said associations, held by any person or
valuation of the personal property of such per.
son or corporation In the assessment of taxes
imposed by or under State authority at the
place where such Bank is located, and not else
where, but net ct greater rate than is assessed
upon other moneyed capital in the hands of
individual citizens of such State: Proridea,
further, That the tax so imposed under the
laws of any State upon the shares of any of the
associations authorized by this act, shall not
exceed the rate imposed upon the shares in any
of the Banks organized under authority Of the
State where such association is located: Pro-
ysded, also, That nothing in. this act shall ex-
empt the real estate of associations from either
State, county or municipal taxes, to the same
extent, according to Its value, that other real
estate is taxed"
The Attorney General of this State has de-
cided also that these National Banks are not
taxable under our State laws, except 90 far as
expressly permitted by this act Of Congress.
-(Opinion of January 5, 1856. Opinions of
the Attorneys General of the State of Mime
sofa, page 4S1.
Under these restrictions the assessor has con.
fined his assessment to the shares of stock held
by the individual stockholders, and returned
them as 80 much personal property of such in
dividuals, subject to taxation under the laws of
this State, the same as other personal prop
erty of individuals subject to taxation.
To this assessment the shareholders object,
upon the ground, as alleged. that these shares
represent the capital of the Banks which con.
sists, in whole or in part, of the United States
bonds pledged for the redemption OF their cir
eulation, and which bonds are exempt from
taxation imposed under the State laws
that in any event the value of the shares over
and above the amount or value of the bonds
should alone be taxed--that is to say the surplus
earnings or capital of the Banks after deduct
ing the bonds, and as far as represented in the
shares of stock should be alone taxed. It has
also been objected that inasmuch as the shares
of stock Of our State Banks are not taxed, (the
State Banks being taxed direct upon their cap
ital, &c. and inasmuch as the second proviso
Aforesaid in the act Of Congress provides that
the tax imposed under State authority "shall
not exceed the rate imposed upon the shares
in any of the Banks organized under authority
of the State where sach association is located"
that under our present tax laws and under
the above restriction, the shares in the Banks
in question are not taxable.
This important question was submitted to
the Attorney General of the State by the State
Auditor, to whom our Assessor, as l UNDER
stand, had applied for instructions and has
been fully and pointedly decided by the Attor.
ney General in favor of taxing these shares.
Opinion of July IS, 1865. Opinions of Attor-
ney General, &C., page 5O4.) Iquote from his
opinion:
1.-THE National Banking Act has expressly
authorized the taxation of those shares, but
has incorporated a proviso which the Banks
rely upon as exempting them from taxation
altogether. This proviso is as follows: That
the tax so imposed under the laws of any
State, shall not exceed the rate imposed upon
the shares in any of the Banks organized under
authority of the State where such association
is located The objection raised by the Banks
is mere quibble and ought not for moment
to have delayed the Assessor in the exercise
of his duty.
1t is true that under our revenue law shares
in State Banks are not taxable go nomine, but it
tits equally true that they are taxed in differ
ent form, by taxation upon loans and dis
counts. In the one case the tax is paid by
the Bank itself, and the value of
the shares and amount of dividend
accruing to the stockholders is to that extent
diminished; while in the other case the tax is
paid by the stockholder directly, in either
case, the amount paid, is by the Constitution
intended to be the same, sec. A, art. 9, con-,
the difference is in form and not in substance ~
Ibid, page sos.
Section "a ands the following sections of
chap L, laws of 1860, of this State, provide a
special mode of taxation for Banks organized
under our laws, but make no provision for the
taxation of foreign corporations, under which
term are included all associations incorporated
under the laws of foreign country, sister
State or the United States.
Taxation of the property of these corpo-
rations is provided for under the head of lin.
vesments in stocks by section of the same
act"
Ibid. page sos; and see act of 1860, laws or
1860, sec. 2, chap. 1, page II.
Sec. 1, chap. i, laws Of 1861, page IA.
The Attorney General is appointed by law
to give legal advice in such matters and his
opinion, independently of the weight due to it
as an able exposition of the law, comes to us