The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-05-05
NATIONAL BANKS.
Opinion of Attorney General Hord Con-
corning their Assessment aad
Taxation.
Construction OF the Law Regarding
the Right OF Shareholders TO De-
cuct their Indebtedness.

yesterday delivered the fcl owing opinion,
which will be found Of considerable impor.
fauee to shareholders in Nations Banks and
the officers whose duly il is to assess the
tame:
Hon. Jsnes H. Rice. Auditor o. state:
srE-You request an answer TO the queetions
bertlnafter stated.
sHAEEs OF NATIONAL BAEKs TAxABLE
Question l.-"Are National Bank shares subject
TO taxationZ'
Nsuonal Banks organized under &C, OF Congress
are instruments designed 10 be used TO aid the
Government ia the administration of an import
AZ branch of the public service
Nat Com. Bank rs. Mobile CO Ala. 2si: Farm
eis Nat. Bank -. Dearing. ~ T. :. K 29; City
Nat Bank vs. PedDcah. : flip 90; SIC cullough vs.
Maryland, Wheat 5l6
National Banking Associations being instru-
me Etalities OF tie General Government are not
snoJtct TO control or taxation by STATES except
20 lar IS ccnsIess nay expressly permit.
D.: sumter County GAINESVILLE % Ala, 46s:
Van Allen Us ASSESSORS ) Well, 5I3: Bradley IS.
feople, Wall, 459. LeOnberger VS. Rouse. Wall,
<es. Tspyan We. Bank. % wsli.. 49, Hepburn VS..
-eheol lii eetois. - Wan. So; People Weaver,
ITO I. K. $50, SIS; MCCULLOUGH vs. ate
Wheat, 3i6; Weston vs cbarieston, Pet 4ig.
Osborn Bank. Wheat. 73S Congress has the
rient TO inhlbit the taxation ci National Bank
excsp: ~ II shall provide. Flint vs.. Boston, 81
N .ss. III
The state Was permitted By the 41st section of
the act OF Congress of June 3 'SS4 30 i'm pose tax
the shares of National Banks. subject TO the re-
s'rction that IL should DOT be at greater
the nands of Individual citizens of the me State
and said section provided that the tsx i'm
Iosed, under the laws of any state. upon the
r. ares OF any OF the associations authorized by
tins act shall not exceed the rate imposed upon
the shares in any OF the banks organized under
the authority of the state where such association
IA located l. l. :. stat. Ch. 1G6, Sec Al.
The act OF ,s6i was modified by that of February
i 1861. which Is as follows.
"Sothing herein (tbe National Bank AcO shall
prevent all the shares in any association from be-
ing included IN the valuation of the personal
10 n mars
assessing taxes imposed by authority OF tue
state. within which such association is located,
bnt Legislature OF each state may determine
and direct the manner and place OF taxing ali the
shsIes OF National Bank Associations located with
in The state subject only 10 two Restrictions that
the taxation shall be a greater rate man is
assesfed uTon other monica capital IN the hands
OF individual CITIZENS OF suca Stale, and that the
spares OF am National BANKING Association,
owned by non-residents of any State. shall
be taxed IN the city or county where toe
bank Is located, and not elsewhere. Nothing here
in she'll he construed 10 exempt the real property
oi as oeiaticns from either state, county mu-
ncipal taxes 10 the same extent, according to its
value, rs other real property Is faxed" U. 5. K.
The ACT OF Congress o. July u lss2. does not I'm
any way change Ssic section o. The statute. but de-
cisrts that said bank snsl continue % be subject
10 all the dgties. Liabilities and restrictions im
posed by the Revised Statutes OF the United
states and other acts having reference to National
BankiDg Associauons; and il shall continue to be
IN all respects the identical association II ba
fore The extension of It's period OF succession III
:. statutes az Large. 1923.
tSseskUe0T
and uxsiion within the restrictions imposed Oy
sad oct OF Congress IN the city or town where toe
Cummings National Bank lOl L. 5. r. 15S;
Supervisors vs.. Stanley, lo5 L. S. r. sos; Evans
xibe National Bsnk vs.. BIitton. leo U. 5. X. 3o5
Boyer vs. Poyer, 20 Cen. L. Jour. 500, opinion by
itzens Nstionsi BsaE. s. Ind Si1, s15; Desty on
Gale. 81 Ind. l07 $50. SSl, 49, Ss4l.
The following sections o. statute per-
fSin tn 10 ~ Of In tha
National Banks: r. :. 1881. D. 6,34i, 6Si5. 1916,
The following a,e sections Of our statute per
tanning TO the taxation Of shares OF stock in
NetioDsl hanks K. :. 1851. SEES. 6,S44, sSi66 $40
t.3i7, 6,SiS. 6,Si9, 6.s5o.
TAXATION or NoS-REsiDExr SHAREHOLDERS.
Question a. Can the nonresident holders OF
shares IN Ns ionsl Banks be taxed thereon in the
Sec. 5,29of tie Revised Statutes OF the United
States quoted in answer 10 the preceding question:
declsres That the shares OF any National Banking
Association owned by non residents of any State
khall be taxed Ia The city or town where the bank
i located, and not elsewhere"
This act abolishes the rule As to shares in Ma.
tons Banks, that personal property OF an intangi.
be character follows the person for the purposes
that of The State in which the bank is located aud
the State may tsX these shares. whether the own
ers ere residents or non residents of the State.
providence INSTITUTION Tor savings aud jewell vs.
Boston. 10l Mass SIS; Iappan vs. Merchants Ma
nousl Bank. 10 Wall; 4si; austin vs.. Alderman,
Vail. ts5, EuToughs on Taxation, Ut, Us;
netiy on Taxation, $50 SSl-2; Loitin Citizens
National Bank S. Ind Sal sis: weitney vs. Rags.
Gale, SO Ind. III: North Ward National Bank VS.
onr statute provides that The shares of any
National Banking Association located in this State
owned by nonresidents OF indiana. shall be taxed
in the city or town where the bank is located and
not elsewhere" r. :. 1851, Sec. 6.S07l
The banE officer may De compelled to furnish a
list OF the stockholders under the statute TO faci
tate The taxation Of the snares therein, < 5
Of Ere, 10 Pet. 4s5; Burroughs on Taxation l2S:
Desiy on Taxation. $50; Whitney vs.. HaEsdale.
IS Ind, lo7 state vs. Ne"srS, 40 y J., l. sos;
waite w. DowDey, "a, {. ;. X 5Z
Taxes assessed on shares OF bank stock become
a hen tbsreon. upon the first day of ADr.i Of ths
current year and srch lien is not affected by sny
ssle or transfer oil such stock. g. ;. 1881. See
Ia shall be the duty of every sueh bank, or the
msnsgiDa officer or officers thereof, after beiDg
n0tihed IN gTiting 10 do SO by the County Treas
EIer. TO retain 20 much of any diyidetd o. dive
bends belonging 10 such stock holders AZ shall be
necessary TO paw any tax levied upon their shares
Of stock respectively until il shall be made APP
pear 10 suca bank or its officers that such taxes
nave been paid. Any ofhcer OF any such bank
who shall pay over, or authorize the paying over,
of any such dividend or dividends. or anv portion
tnertof contrsTy 70 the provisions of tHis section
shalt thereby become liable for such tax. or tue
ospk may ray tie tax due from any Of It's share
bo'de's and retain the amount thereof from any
subsequent dividend" :. 1881. sec 6.Si9
1s0ss imposed on the sock of 4 National Bank
become q lieu upoD the shares taxed aud such
lien continues n the taxes paid. and IL IL the
lax ly assessed sgsut their respecttve spares
whether the stockholders reside in the State
lot. Nat Com Bank vs.. Mobile. 81 Ala 295. Nat.
fank vs.. Com "al S5s; TaDpsn VS.. Mer. Nat.
hsnk. l9 Nall, 49l. Waite vs. powly. o. Z. :. K,
So Adamsys. Nashville. - :. K, 70. Melvery
RobinsoS IS Ala. 4s6. l Desty on Taxation.
Sc see.
ASSESSMENT OF ZEAL ESTATE AND STOCK.
Question SIS the real estate OF a National Bank
fsxed as such, or Is it included in the valuation
Of fbe stock ana taxed as stock p
The act of Congress provides nothing herein
shall he construed 10 exempt the real property OF
banking associations from either State county or
munictpsl n xes, the same extent. according TO
ITS value other real properly is taxed IL. s. X.
a. Sec. a219.
Under the act OF Congress TIL State is left free to
exercise the power of taxation National
Banks assessing the same upon the real property
of The hank or no the shares OF its caDsfal STOCK