Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-03-27
THE TAX ON BANR sHARES.
Grounds Upon which the New Or
cinnnce Will Re Contested.

The new city ordinance taxes bsnk shares
at their market value. The view the First
National Bank contends Is an unfair one !;
they insist that il thereby taxes some pro-
perty twice and taxes other property that Is
bv law non.taxable. Hence Mr.. Daven-
port day before yesterday sought out the
Mayor and notified him that they would ap-
peal to the law. II they do and meet with
success the citv's revenue for this fiscal year
will he about $50 600 less than the sum cal
culsted iu the recently adopted budget.
The bank-men argue that the bank shares
represeut the capital and the capital consists
in large part OF city bonds snd real estate.
CITY bonds are non-taxable. The real estate
Cbanking- -hOuse) pays one tax as property.
Hence TO tax these two items again Is unjust
and illegal, they think.
Mr.. DAvENPoRT's VIEW.
Mr.. Davenport said yesterday that under
the city ordinance which was in force on
February 1st shares OF national banks were
taxed at their market value. Those banks.
serving the city as collectors oi this tax, by
special agreement, were, however, allowed
TO deduct from the market value OF the
shares certain holdings, such as real estate,
upon which tax had been paid under sepa'
rate assessment, city bonds, and other non'
taxable securities. The new ordinance i'm
posing tax on natiOnatbank shares takes
away the privilege OF making these deduc-
tions. Having cheerfuliy borne what seems
fair share Of the expenses OF the city gov
ernment in the past we propose TO resist the
Efforts to increase our burden.
THE STATE LAW.
A member OF the Finance Committee said
Yesterday that the city ordinance is based
upon the State law. and they are advised thal
it is lawful aud proper.
The State law is as follows:
Tar on Banks. No tax shall be assessed
upon the capital OF any bank or banking as
sociation organized under the authority OF
this State or OF the United States; but the
| stock holders 10 such banks or banking assO.
Citations shall be assessed and taxed on the
market-value OF their shares Of stock therein
at the same rate as is assessed upon other
moneyed capital in the hands OF individuals
residing In this state. 1t shall be the duty
OF each commissioner OF the revenue an-
nuallv. during the month OF May, 10 r.
port 10 the Auditor Of Public Accounts
| The name OF each bank or bank
ing association doing business In bis
district, and the names OF the officers there
Of. and to assess thSshare or shares Of each
stakeholder in the bank or banking assOcia-
ton as aforesaid at the market value there
| OF as Of the 1st day OF February in each
year, and 1t shall be the duty OF each OF
| such banks or banking associations forth.
/ with TO pay into the Treasury OF the state
the tax imposed by law upon such assess
ment OF the shares aforesaid on or before the
1st day of June. II such tax be not paid
within thirty days after the assessment OF
the said shares, the cashier OF The
bank or banking association falling tc
make payment and his sureties shall
be liable for the same, snd 20, per eentun
upon the amount to be recovered, on mo-
tion OF the Auditor OF Public Accounts. In
the Circuit Court OF the city OF richmond
upon ten days notice, according to the pro-
vision OF the second section OF Chapter Nil
of the Code OF Virginia, edition OF 1873. The
real estate Of all banks and banking sssocia'
| tions shall be assessed on the land'books OF
the commissioners OF the revenue with Tho
same taxes with which other real estate /;
| aaeaegHN