Sturgis advertiser. (Sturgis, Dakota [S.D.]) 1887-1???, 1891-05-14
AN IMPORTANT DECISION.
ATTORNEY GENERAL's OFFrCE
pinrr.n 81 n Mnrr 1901

Pierre, s. d., May |, 1891.
Hon. L. G. Taylor, State Auditor.
DEAR SIR: Replying to your request
for the opinion Of this Office as to the
legal effect OF section Is, OF the revenue
law, I desire to say that that section per-
mits as follows:
Section 18. Any person who is re-
quired to list credits, either for himself,
or for any other person, firm or corpor-
alton, NAV deduct from the gross amount
thereof the amount of all bona fde in
debtedness of himself, or of any such
person firm or corporation; bnt on ac-
acknowledgement of Indebtedness not
| founded on actual consideration to the
full amount of such acknowledgment at
the time when the same was given, and
no acknowled made for the pur-
pose Of being SO deducted, shall be con-
sidered debt in the meaning of this
section, and every person SO claiming
any deductions shall furnish the assessor
with list containing:
1.-The amount of all book accounts.
2-The amount of all notes due him,
and also list of the amount of all book
accounts owing by HIM, and of the
amount of all notes owing by him, and
he shall be required to verify the same
by oath administered by the assessor.
Nothing in this section shall be con-
strued as to apply to any bank, banker,
or corporation exercising banking powers
or privileges. Provided, however, that
any person, company or corporation, in
making up the amount of personal prop
erty required to he listed for himself, COM
pany or corporations shall be allowed to
deduct from the gross amount thereof
any Indebtedness of himself, company or
corporation, if the same be owned or held
within this state. Provided, further,
that grain held by the producer of the
same, actually sold or contracted to be
sold, but not delivered, shall be classed
in credits"
It will be seen that this section, pre-
ceding the words: Nothing in this Sec
| ton shall be SO construed as to apply to
any bank, banker or corporation exercis-
ing banking powers or privileges" fur
nishes complete system for deducting
debts from credits, but following the
language quoted occurs this provision
| provided, however, that any person,
company or corporation, in making up
the amount of personal property required
to be listed for himself, company or cor
poration, shall be allowed to deduct from
the gross amount thereof any indebted
ness of himself, company or corporation,
1 if the same be owned or held within this
state" To what does this proviso APP
ply? Manifestly to the preceding mega
tive proposition relating TO banking bus
mess. That is to say, it provides that
any bank, person or corporation exercis-
ing banking powers or privileges, in
making up their amount Of personal
property required to be listed, shall be
allowed to deduct therefrom any indebt-
edness owned or held within this state
What personal property is the amount
of such debts to be deducted from
Property of the same character as other
| taxpayers are permitted to make such
deductions from, viz: credits. This
conclusion not only arrives from the
within section taken together, but would
seem to be required by the rule of equity
and universally exhibited by the consti.
tuition. Ii will be observed that the last
provision of the section reads: "Pro.
vided, further, that grain held by the
producers of the same, actually sold OF
contracted to be sold, but not delivered
shall be claimed as credits" Why this
proviso? To give the farmer the right
to treat grain contracts as credit, tc
the end that bis debts may be deducted
therefrom. IL the rule were that any
person could deduct the amount OF in.
debtedness from the value of his per.
sonal property, where would be the ne.
cessity for this provision?
Respectfully,
ROBERT DoLLARD.