Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-12-16
THE TAXATION OF BANKS
Lawyers Say That the Adams Bill Does
Not lnValidate the Act of 1859.
OPINION FOR CLEARING HOUSE
Given by Messrs. Vandegrlft
and Salisbury.
OLDERLAW, HOWEVER, QUESTIONABLE

Assuming the act OF April Sth, 1860, :
to be valid. which they consider is
very questionable. Attorneys Vande-
grlft and Salisbury have rendered an
opinion that the act OF May goth, 1897,
known as the Adams Tax bill, does not
repcul the first-named act aud that
therefore, the banks are taxable only
under the older act. The opinion is
addressed to Messrs. George 5. Capelle,
presidept Of the Wilmington Clearing
House Association, Joseph j. Carpen.
tor, lr., and james +. Winchester
committee Of the Wilmington Clearing ;
House Association, and is, in full as
follows:
"Gontlemen You have inquired OF
us whether in our opinion the banks OF
this city may come within the purrlew
of the act entitled. An Act to equalize
taxation for the State and county pur-
pnses, passed at Dover, May Goth,
1897. and tine supplements thereto, or
whether they shall continue to pay the
tax imposed by the act OF April Sth,
1868, REV. Code p. 81.
"By section of thu act OF May goth,
1897, the assessurs Of the various hun
dreds or assessment districts in this
State are required to asHese all invest
ments paying interest ar yielding an
income, and which are not now taxed
for either State or county purposes.
"By the act Of April Sth, 1869, the
owner or holder Of shares of the capital
stock of every bank or banking asso
ciatiUn Incorporated under the lave OF
the Stats of Delaware or the United
States and carrying on business in
Delaware, is required to pay tax OF
one fourth nf ! per cent on the cash
value Of each share of capital stock.
aud the cashier is required to deduct
thu tax from the dividends and pay
over the same to the S tate Treasurer.
'l'hnrc 10 also n provision for collecting
tho tux In cases where dividends are
not declared.
Assuming. as you request, for the
purposa OF this opinion. that tho act
OF 1863 last referred to, is valid, then
our opinion is that the institutions you
represent arc not liahln to taxation
under the act of May Goth. 1897, better
known as the Adams Tax bill, because
said institutions are already by the act
! of April Sth, 1869, taxed for State and
county purposes, and are therefore by
the terms Of the late act, exempt from
taxation hereunder.
10 Inc suggestion tnat bpcllon II OF
the Adams Tax bill may be held to re
peal the prior act under which YOU
have been paying a tax, our reply ~
that the section referred to cannot be
held to work repeal of the prior act
OF 1869, since both acts, il tho first bo
constitutional. which We have only Ms
sumed, may be construed as not incon.
siatent with each other, but as entire
operative and effective. the subjects OF
taxation reached by the act OF 1863
being expressly exempt FROM the pro-
visions of the act Of 1897.
"You will understand that tine fore
going opinion is based upon your in
structinna to us to assume the fact that
the act OF April Sth. 1869, is valid, and
this we have done. Wc, however, want
| it understood that wo are not here ex-
pressing any opinion as to the validity
or constitutonaIity of said last men.
toned act. II it should hereafter be
held invalid it might materially modify
our opinion MS 10 your liability under
the act Of May goth, 1887.
Respectfully.
Lewis G. Vsndegrft,
Willard Salisbury,