Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1879-01-17
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FRIDAY MORNING. JAN. II. 1879
Important Decision.

Local.
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Important Decision.
! THE TAX ON BONDS IN THE HANDS OF
COURT COMMISSIONERS AND RECEIVERS
BONDS IN CERTAIN CASES NOT TO BE
LISTED BY THEM,
&C., &C., &C.
In the jurisdiction of Mr.. Geo. FL. Hud-
son, the Commissioner Of the Revenue for
Staunton, there are held in the hands of
commissioners, appointed by the courts,
and receivers Of the courts, bonds to the
amount of $50, 1904, which, at the rate Of
taxation prescribed by the State, would
yield it 81, 05490 Of revenue. The Audi
tor at Richmond holds that these bonds
should pay taxes according to law, and so
instructed the commissioners of the reve-
nue., The law was passed in 1851. The
commissioners. who are the custOdianS Of
the largest amounts of bonds are General
John Echols, the tax on tie bonds in his
hands, at Soc in the 500, being $1.850.27;
Geo. M. Cochran, Jr., the tax on the bonds
in his hands being 81 ,151.67, and Maj. IL.
M Bell, Maj. T. G. Elder, r. P. Bell, A.
II. Fultz, 2. A. Baylor and a number Of
other gentlemen. AS the tax comes, OF
course, out of the funds in their hands
they have no personal interest in the mat
ter but contend in the interest OF the per-
sons for whom they hold, that these bonds
have in many cases been already made the
subject of taxation in another form, and
to pay the tax now sought to be collected
would be to pay double tax. The re-
uuirelnent of the law is that all bonds
executed to commissioners of sales and
receivers Of the courts in judicial proceed
ings shall be taxed and the Commissioner
of the Revenue last year listed all such
bonds.
On Saturday last in the Hastings
Court, Judge Green Smith, presiding,
motion was made on behalf Of the Com
missioners and Receivers to correct the
assessment, the ground being that these
bonds should not in all cases be taxed.
The motion set forth that:
LIST. In cases where property was sold
under decree of the court to satisfy debts,
it was the duty of the owners of the debts
to have listed them for taxation, and it
was to be presumed that the law haG been
complied with in this respect; that to sub
iect to taxation bonds which had been
executed to commissioners of sale would
in effect be subjecting the creditors in
such cases to double tax, because the
bonds executed to the commissioners were
mere representatives Of the proceeds of
the property sold to satisfy the debts of
the creditors, and created no new value
in other words they merely represented
the debts of the creditors in another form.
I'd. In cases where property had been
sold, and the fund was held by commits
sioners and Receivers for distribution
amongst heirs, they applied for relief from
taxation, insisting that it was the duty of
the heirs to give in for taxation their re-
spective interests in the subject, and that
to tax the bonds under the control of the
court would be in effect to impose double
tax.
Sd. The third was another class of cases
| in respect to which no relief was asked,
| Viz: trust funds, moneys belonging to lu-
| natcs and other persons under disability
| in the hands of the General Receiver for
permanent investment subject to the gen.
eral control of the Court. 1t is conceded
that in this class Of cases it is proper that
the General Receiver should list the bonds
aid other securities for taxation and pay
the taxes out of funds in his hands.
The Court held in respect to the first
class Of cases that to subject the funds
under control of. the Court to taxation
would in effect be to impose double tax
on the creditors entitled to the fund, as
they were required by law to list for. taxa
| ton the debts prior to the sale. With re-
gard to the second class OF cases the court
I felt more difficulty but held, nevertheless,
| that the bonds executed to the officers of
| the court ST. ould not be taxed, inasmuch
as it was the duty of heirs and distributes
to give in to the Commissioner their re-
spective interests for taxation. With re-
ference to the third class of cases there
was no contest, but the court in conclu-
sion held, that in all the classes such por-
lions of the bonds as belonged to non-resi-
dents of the State should be listed by the
| Commissioners and Receivers and the tax
on them be paid out of funds in their
| hands.
AS these decisions involve very large
amount of taxation held by the State as
due to it, and to realize which laws have
been passed, the case will doubtless be ap-
pealed to the highest court where the ques-
ton will lie finally settled.