The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1880-04-21
AN OPINION
OF Attorney General woollen on the Assess
ment of Taxes on National
Bank Stock.
The following opinion was submitted yes

The following opinion was submitted yes
terday:
SIR-Your favor of the 9th instant, referring
to me the letter of the Auditor of Tippecanoe
County, has been received, and l herewith
hand you my reply TO the questions therein
asked.
The questions are as follows:
"How shall the value of stock Of National
Iained? Should 1t be done by taking the par
value and then adding the surplus and I'M
divided profits, deducLng the real estate
estate? Or, should its value be fixed by taking
the price OF the STOCK in the maket, II any
bona fide sales have been made?"
The law under which the National Banks
are assessed will be found in the assessment
act Ton PIP. II and ~. sections 81 ct seq, Acts of
1871 These sections, in substance, provide
that the shares of capital stock shall be as
sessed in the County, Township, city, or town
where the bank is located, and shall be taxed
at the same rate as other personal property in
the same locality Is taxed that the stock shall
be assessed with regard TO Its value on the LIST
day of April of the current year; that the
president or cashier Of every such bank shall
make out a statement under oath showing
the number of shares comprising the capital
stock, the name and residence OF each stock
holder, with the number of shares owned by
such stockholders, the par and cash value of
each of said shares, and also the par and cash
value of the entire capital STOCK on the
lst day of April, ana snnlI deliver sucsi state
ment TO the County Auditor, who shall de-
liver copy OF the same TO the Assessor, and
the capital stock shall thereuPon be listed and
assessed by the Assessor, and return thereof
made in all II spects the same as similar prop
erty belonging TO other corporations or indi-
viduals, ETC., etc.
to return the par and cash value OF the stock,
which is thereupon to be listed and assessed by
the Assessor, and the question is, how shall
the assessable value be ascertained by the AS
SCISSOR?
II must be remembered that the capital
stock OF a corporation represents Its total
DrOD9rtV. whether real personal. In the
case of National Bank. II represents the
amount paid in for the stock, the surplus and
personal and real property. Hence, the value
of the capital stock should represent the value
OF the taxable assets of the bank. Real estate
separately taxed, Its value should
be deducted from the total value
of the stock when ascertained. In as
certaining the value of the capital stock, the
surplus fund and the undivided profits should
be considered, but IL would not be proper to
take the par value OF the stock and add the
surplus and undivided profits in all cases, for
this assumes that the capital stock is not inn :
paired by bad investments, which may not be
true. IL there Is a market value OF the stock,
that would be a safe guide; and where there is
none the assessor must make such assessment
as seems just, taking into consideration ali the
circumstances, including the statements of
the officers of the bank.
BY the charter under which the National
Banks are organized IL Is PROVIDED that the
thority, "but not at a greater rate than is as
sessed upon othei moneyed capital in the
hands OF Individual ciIizens OF such State" In
reference to this provision, the Supreme Court
oil the United States, in the case OF The People,
etc., VS.. The Board of Assessors of the City of
Albany, have held as follows:
/. The provision of the National Bank law
that State taxation on the shares OF the banks
shall not be at a greater rate than is assessed
on other money capital in the hands OF citi-
Zens of the State, has reference TO the entire
process Of assessment, and includes the valua-
ton of the shares as well as the ratio OF per.
centage charged on such valuation.
2 A statute of q state, therefore, which es-
tablishes mode of assessment by which the
shares of the National Banks are valued higher
In proportion 10 their real value than other
moneyed cspital, Is in conflict with the act 81
Congress, though no greater percentage is
levied on that valuation than on the valuation
OF other mOneyed capital.
3. The statute of New York, which permits
debtor to deduct the amount OF his debts
from the valuation OF all his personal property
including moneyed capital, except his bank
shares, taxes those shares at a greater rate
than other moneyed capital, and Is, therefore,
void as 10 the shares of National Banks
Under the law OF Indiana no person can de-
duct his debts, In his assessment, from his
moneyed capital and hence the point upon
which the foregoing case was decided does no
exist In Indiana, but IL should be the duty OF
the assessors to assess the banks carefully and
fairly, so that no complaint can be justly made
that the assessment is higher than the valua-
ton OF similar property In the hands OF other
persons or corporations. have the honor to
be, very respectfully, It. W. WooLLEN.
To Hon. d. d. Manson, Auditor, etc,