The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-07-04

Replying to a question asked by Will
lam f. Reid, county attorney of Sanpete.
the encouragement yesterday handed
down an important opinion in the matter
of taxation of banking corporations.
/ The Sanpete attorney asked whether or
not banking corporation when listing
its property for taxation had any right
to deduct from the amount of its capital
stock a sum equal to the amount OF
money that it has loaned upon mortgage
securities, when such mortgages have
also been assessed for taxation.
Replying Mr.. Bishop says: Let US
examine the law upon this point Sec
ton . of article Is of the constitution
says all property in the state. not ex-
empt under the laws of the United States
or under this section. shall be taxed in
, proportion to its value to be ascertained
as provided by law The word propertV
as used in this article is hereby de-
clared 10 include moneys. credits. bonds
stocks. franchises. and all matters and
Things real. personal and mixed), capable
OF private ownership
There can be no question but that
stock Is property within the meaning OF
this law. and without further authority
OF law, would be taxable as such. The
legislature. however. in section CT the
revenue act. has enacted that the stock
holders in every bank or banking assO-
Z citation. organized under authority of this
assessed and taxed on the value of their
shares of stock therein. in the country.
town. city. or district where such bank
or banking associations are located. and
not elsewhere. To aid the as
SCISSOR in determining the value of such
shares of stock. the cashier or other ac-
counting officer of every such bank must
furnish a verified statement to the as
SCISSOR. showing the amount and number
of shares of the capital stock of each
bank. the amount of its surplus or re-
amount OF investments in real estate.
which real estate must be assessed and
taxed as other real estate, and the names
and places of residence of its stOckhold-
ers. together with the number of shares
held by EACH
The constitution of the state has speci-
fled what property shall be exempted
from taxation. and the legislature is
without authority to exempt any prop
erty other than that so specified therein.
The legislature in the revenue act"
section Z. has enacted that In the assess
ment of shares of stock Of any bank or
banking association. the stockholders
must be allowed all the deductions and
exemptions allowed by law in assessing
the value of other taxable personal prop
erty owned by individual citizens of this
state.
In section s. ii is enacted lin making
such assessment tflere must also be de-
Quoted from the value of such shares
such sum as is in the same proportion TO
such value the assessed value Of the
real estate of such bank or banking as
ISOLATION in which Sucn shares are held.
bears to the whole amount Of the capital
stock. surplus. reserve and undivided
profits of such bank or banking assOcia-
ton.
Under these two sections Z. and S. is
found all Of the law touching deductions
and exemptions in the assessment of
shares of stock If it could be said that
the proper officer of a banking CORPORA
ton was authorized to deduct the amount
of money which it had loaned out on
mortgage securities from the amount Of
its capital stock in any particular sum.
he might III case all of the capital OF the
company had been loaned on such Sc
cu-,tieS deduct the whole thereof when
listing the corporations property for tax
action. Thus the provisions of section
s. providing for the taxation of the
shares Of stock would be rendered in
operative.
The legislature has spoken briefly but
clearly as to what property shall be de-
Quoted or exempted. and we are not per-
mitted by any construction whatever 10
enlarge thereon
Section provides that the cashier or
other accounting officer OF the corpora
ton in his verified statement. must
specify the amount Of investments in real
estate. and section : provides for the de-
duCtiOn upOn a certain ratio of such
amounts so invested. from the value of
the shares of such corporation. but no
mention whatever. Is made Of mortgages
Thus we are unable 10 find any provi-
SiOnS of law either EXPRESS. or arising by
necessary Implication. which would
authorize the deduction mentioned. upon
the part of the CORPORATION
You are therefore advised that no de-
duction from the assessed value Of the
capital stock of a banking institution can
be made on account of any money II has
loaned upon mortgage securities even
though the mortgages may also have
been assessed for taxation.