Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1877-05-31

beng agitated ought absolutely 10 have
been set At rest BY the Law itself, q, for
exsmpler one which IL said now to be
occasioning some embarrassment to the
Appeal Tax Court Of this city and the
Commissioners Of Baltimore county. II
- that Of the right to assess and tsx the
property IN the county Of . corporation
having its principal Office in the city,
where its stock is owned. There are
manufacturing corporations, il - stated,
which ore precisely IN this category,
owning mills or factories and real estate
In the county. while the stockholders,
or majority Of them. reside in the city.
Where is the property to be taxed
The Appeal Tax Court assert their right
to assess and tax the capital stock of
the corporation or the shares in the
hands Of the resident stockholders here
where both reside, that 10, both the
stockholders, who are natural persons,
and the corporation, which is an artifi-
cial person and supposed to reside where
it has its principal Office or place ofbus-
mess, Is fixed by its charter or certif-
cate Of incorporation. The County Com
missioners, on the other hand, claim to
tax the real estate and other tangible
property which the corporation owns in
the county, Is property located there.
To tai both, say the stockholders, is to
compel the same property to pay taxes
in two places, which is double taxation.
On the contrary, argue the tax officials.
and the comptroller and attorney gene
raj are said in principle to agree with
them, the shares in the hands Of the
stockholders are property assessable
where the owners reside, being the per-
sonal property Of individuals, and per-
sonal property Of the intangible kind,
such As stocks, for purposes oftaxation,
following the person Of the owner. The
real estate on the other hand, which is
the property of the corporation, q dis
tinct person in law from any or oil of
the ssoekhsaisssrAhould be iaxed ike
everybody else's property Of the same
kind, where it is situated. The distinc.
ton is IN ingenious one, and is not with
out the support Of high judicial author
ity, and is strongly urged by the comp
troller in his last report to the Legisla-
ture. No amount of legal ingenuity,
however, can obscure or alter the fact
that If you tax al the stock in the hands
of the shareholders where they reside
and then all the property OF the corpo-
ration which the stock represents where
it is located. you are practically taxing
the same property twice. There can
be tax upon the corporation or its prop
erty which does not come out Of the
pockets Of the stockholders. and IL in
addition they are taxed upon their shares.
which represent their respective por-
tons of or interests in the corporate
property, it cannot be- denied that they
are subject to double taxation. Such
taxation, it is argued, is contrary to the
declaration Of rights Of the people of
Maryland, which requires that taxation
shall be uniform and equal, and is, there
fore, unconstitutional. In the case we
have suggested the stockholders cannot
be taxed in Baltimore city and then the
property which their stock represents
be taxed over again in Baltimore coun-
ty without violation Of this principle.
1t was expressly 30 decided by the
Court of Appeals in the "tax case" aris-
ing under former assessment, and re-
ported in the 18th vol. of Gill & John
sons reports in the case Of the Union
Bank Of this city. The same principle
was subsequently, resfirmed in the case
of Gordon VS.. the Mayor and City Coun-
Gil of Baltimore in the 5th vol. OF ellis
reports, where the court say that to
tax both the real and personal property
Of corporation, and also its stock. Is
= double taxation, and therefore uajxsf.'
An attempt to embody the general prin-
ciple that the taxation Of the shares ex-
empts the property which they repre-
sent, and rice Versa. in the form Of an
amendment to the present law, il is said
to have been voted down in the House
Of Delegates. That, however, cannot
affect the question so far as it depends
upon the construction Of the article in
the declaration Of rights.-BaLto. San.