The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-05-09
STATE STOCK BANKS.
Opinion Concerning the Assessment and
Taxation OF STOCK In state Banks.
The Attorney General Eolds that @
Stakeholder Can Not Deduct Bis In
dtbtedness from ais stock.

IN feepGnf6 10 questions huomltteu Dy tne
Auditor e. State, the Attorney General yes
tezcay udtIed the ;0lloKiag opinion con.
sefning State banks:
Zen games II. Rice. Auditor OF State:
s.R-lou submit for answer the following cues
T. ITO what taxation sre the stock bazks. in.
eorpora,ed under the law 81 this state, subject,
and low taxsdp The shares Of capital stock I'm
any bar located within this state, whether organ
tzed under the laws OF this State or the United
states, sfe H1etSed 10 the owner thereof ia TIE
township. city or town wherein such banK or
oaDklng association - located. and are taxed at
the seme rate - other personal property in
the sane locality Is taxed, and with refer.
ence 10 it, value on the LIST day OF April
OF me current year. ~. 5. 1881, Sec. GA
The President, tashier or other accounting ofheer
OF such bank or banking association shall be-
tween the first day OF ApEil and the first day OF
JnEe OIL eacn year. make out q statement under
oath In duplicate, showing the number OF shares
con pIisine the cspiial stock Of such bank. aud
win The number OF shares owned by such stocS.
holder in such bank. and he shall afiix what he
deems the fair cash value OF eacn OF said shares,
ana also TIE fair caAh value OF the entire capital
stock Of such bank or bansing association on the
hrtt cay OF April, and shall deliver one of such
ship wherein such bang or banking
association is located and the other
stock shall thereupon be listed and assessed by the
Assessor. and return thereof made in ali respects
the tane as similar property belonging 10 other
corporations eud individuals whenever any
such bank shall have acquired real estate other
tsnR1ble property the assessed value of sucn real
ettate or tangible property shall be deduc.cd from
The yaiuation OF the capital stock OF such bank.
In making such statement of the fair cash value OF
shares the credits shall be given and the bona
fde ind ebtedness OF such bank deducted there
from. as in the case OF individuals. The Assessor
shsll determine and settle the fair cash
examination OF sucn statement and also
an examination under oath Of s1ch
oncer II he deem II ncces AIRY, and In fixing the fair
cash value OF each OF sad shares of stock ne shall
be governed by the market or usual selling price
bank IN located and there be 70 market value ne
snsl min the aesua yAne taking intS con-
any, just as he would with respect 10 other
moneyed capital in the hands OF individual citl-
In case 81 ihe fsitrs o o. Ssf 10
Cashier or other proper accounting officer OF such
bsnk 20 make and return such dupleate state.
the proper county scall summon such officer TO
appear forthwith before MIN with the books of
tor is e1spozertd 10 Compel the attend
aDce OF said officers in obedience to tucl
,nnmons and TO- e1smine them under oath and
BANK or banking association, rs mSy enable him
10 obtain the information. K. S. 1851. Sec 3is
such capital sleek the tax duplicate OF the
cuiTent year, and shall compute aud extend
taxes thereon the same agsin.t the valuation OF
Sec. 6347l
Taxes assessed upon shares Of bank stock be.
come lien thereon upon toe FIRST day Of April of
the current ana such lieu shall be in now Sc
affected by any sale or transfer OF s1ch stock
Such taxes shall be paid by the owner or holder
thereof In the manner thst other individuals
or corporations pay their taxes. and shall be sub
1t is thc duty of every such bank. or the manag-
ing officer or officers thereof after being notified
In writing 10 do so by the Comfy Treasurer, to
longing to such stockholders shall be necessary
10 Pay any tax levied upon their shares OF stock
respectively, until 10 shall be made to appear TO
such bank or its officers that such taxes have been
paid ANY officer of any such bank who shall pay
Or N fko rQxrfuo IF oF
dividend or dividends or any portion thereof con
trary 10 the statute. shall become liable for such
tax; or the bank may pay the tax due from any OF
its shareholders and retain the amount thereof
with Interest. from any subsequent dividend. r.
Real estate OF SUCH bank is assessed as such. lR.
= 1Ssl. Gee s45 e,Si6, 6,s47; Loftin vs. National
Bank. IS Ind. 3i1 Craft futile, 27 Ind, 332
In assessing bank stock il Is the duty of the
ofieer TO deduct from the actual value OF each
share sum bearing the same proportion thereto
bears 10 the actual value of all the capital stock
and the share holder is taxed on the balance of
missioner of Tax, g. n. Y, o. Loftin VS. Citizens
bank. s. Ind. SAL S47; SO Ind. 49, 455; People
Evansville Bank Britton, los U. S. r., 322, 32I
Can the surplus or profits reported by such
banks be deducted from The valuation of the cspl-
Section $685. 4. s. 1881. provides: "In making
such statement OF the fair cash value OF such
shares, the credits shall be given and the bona fde
Indebtedness of such bank deducted there.I ON,
as in the case OF individuals"
his ste OK. This value is estimated with reference
20 the market or selling price thereof at the place
where the bank Is located, and ii there Is no
msrket value the officers shall determine the
actual value. taking into consideration the in
debtedness. surplus and individual profits OF the
bank. People VS.. Comrs., 81 New York. SIS, 52l
Hepburn vs. School Directors, % Wall. as; PEOPLE
W. Comrs.. 81 u. {. r, As People COmrs. 90 New
ork. 81: Loftin VS.. National Bank, s. Ind, SAL
People VS.. Comrs., 80 New York, 57S: r s. 1881.
8 C. 6,S45
The statement referred to in ssid section of the
statute recited above. embracing the credits and
deduction of Indebtedness therefrom Is fur nisse
by the bank officers to the Assessor aid him only
in fixing the fair cash value OF the stock
Section 6.3s3. declares thar mo person, CON-
pany corporsion shall be entitled to any de-
auction from the amount of any bonds, stocks
money loaned or money al interest" Ine in
debtednexs, surplus and profits Of a bank tx the
market vslue of the stock, and the only
construction that can be reasonably placed on
said statute IS that the value of the stock is de-
termiDed by consideration OF the indebtedness
surplus. profits and everything that may fix the
value OF stock. and IN this way only can the
tank receive consideration OF its indebted
The stakeholder in 6 bank incorporated
under the laws of this State is taxed on the valua
ton thus ascertainec and he is not authorized to
deduct his indebtedness from this valuation of
his stock, but he nav deduct his indebtedness
from his credits only. z. s. 1851, Sscts. $751;
t,SsS Respectfully,
Francs T. HoRD.
Attorney General.