The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-05-05
TAXATION OF BANKS.
An Opinion by Attorney General Hord ON
the Tax Assessments on Bank Stock.

In answer to letter of inquiry Attorney gen
eral Hord has given an opinion to the effect that
national banking associations, being instrument
alties Of the general government, are not sub
iect TO taxation by the States, except so far as
Congress may expressly permit that Congress
has authorized the taxation of shares of stock in
national banks, and they are liable to taxation,
subject to the restriction that it should not be at
greater rate than that imposed upon other
moneyed capital in the hands of individual citi-
zens of the same State and the shares are
taxable in the town or city where the the bank
is located and not elsewhere. The Attorney
general says, further, that the shares of any ma
tional banking association owned by non-resi-
dents OF the State of Indiana, subject to tax
alton in this State, in the city or town where
the bank is located; that bank officers may be
compelled to furnish list of stockholders to
facilitate the taxation of the share; that
the tax becomes lien on the stock on
the LIST day of April, and such lien is not
affected by sale or transfer of the stock. The
State may exercise the power of taxation over
national banks, assessing the same on the real
property of the bank or upon the shares of CAPT
tai stock at the election of the State In con-
formity to rules applicable to citizens and cor
porations. The officer fixes the fair cash value
Of each of said shares of stock; he shall be gov
erned by the market or usual selling price of the
stock at private sale at the place where its bank
is located, and if there be no market value he
shall determine the actual value, taking into
consideration the surplus and individual profits
if any, just as he would with respect to other
moneyed capital in the hands of individual cit-
zens of this State The real estate of the bank
is assessed as such and placed on the tax dupli-
cate for taxation, and in assessing bank stock it
is the duty of the officer to deduct from
the actual value of each share, a sum bearing
the same proportion thereto as the assessed
value of the real estate of the bank bears to the
actual value of all the capital stock; and this
residue constitutes the amount aid value of the
shares of stock to be placed on the tax duplicate
for taxation The real estate is taxed as such
separately, and the balance of stock. after de-
Quoting the value of the real estate, is the amount
to be taxed as stocks
The Attorney general says that the share
holder is entitled to deduction OF all
just Indebtedness from the amount of stock,
after deducting the value of real estate; that
there can be no deduction of Indebtedness from
the value of the real estate. but from the actual
value of the stock, after deducting the assessed
value of the real estate. That Indebtedness can
not be deducted from the amount of any stocks,
except from stocks In national banks, from
bonds, or money loaned or money at interest,
but may be taken from what the statute has &C.
fined as credits, and the shareholder in banks
may take his debts from the shares of stock as
explained above.