Evening star., 1898-06-14
COLLECTION OF BANK TAXES
Enforcement to Be Tested Before Congress
is Asked to Legislate.
Opinion of Attorney Thomas Indors-
ed by the COmmissioners-Text
of Attorneys Decision.

The District Commissioners today ap-
proved an opinion rendered by the attorney
for the District, Mr.. s. T. Thomas, in
which the law officer holds that there
should be another attempt to apply exist
ing law to the enforcement of the collec-
tion of personal taxes against the national
| tanks of the District before application IS
made to Congress for further legislation in
the matter. But SO far as the taxes for
antecedent years are concerned, Mr.. Thom-
as is of the opinion that the Commissioners
are without authority to levy such taxes.
The opinion of the attorney was render
ed in reply to an inquiry made recently by
Commissioner Ross, Mr.. Ross being of the
opinion that the collection of such taxes
can be enforced. The Commissioners ap-
proval of 1he opinion means that the sug-
gestiCn of Mr.. Thomas that another at
tempt be made to collect the taxes will be
adopted by the Commissioners.
The following is the opinion rendered by
Attorney Thomas:
Il am unable to persuade myself that the
general term of the Supreme Court of the
District of Columbia was correct in its
disposition of the case of the Bank of the
Republic against the District of Columbia,
in holding that national banks in this Dis
trict were exempt from personal taxes
under the act of Congress of March 3,
Agrees With MIR. Ross.
Il agree with the view of the matter pre-
sented by Mr.. Ross in his letter. do not
believe that the provision in section of
the act of March 8. 1877, that such proper
ty as Is exempt from taxes by laws of the
United States had the effect of repeating
or that 1t was the intention of Congress to
repeal, section 5219 of the Revised Statutes
of the United States, which provides:
That nothing in this act June 3, 1864 }
( a nod A.
in any of the said associations, held by any
person or body corporate, from being in
cluded in the valuation of the personal
property of such person or corporation in
the assessment of taxes imposed by or un-
der state authority at the place where such
bank is located, and not elsewhere but not
at greater rate than IS assessed upon
other moneyed capital in the hands of in
dlVldual citizens of such states: provided,
further that the tax so imposed under the
laws of any state upon the shares of any of
the associations authorized by this act shall
not exceed the rate imposed upon the
shares in any of the banks organized under
authority of the state where such associa-
ton is located; provided, also that nothing
in this act shall exempt the real estate of
associations from either state. county or
municipal taxes to the same extent accord
ing to its value, as other real estate is
taxed
THE provision in the act approved March
j, 1883 CD Stat, 4iS). that the taxes here
IN speclncaily imposed by the laws now in
force be. ard the same are hereby, repeal
ed, namely. on capital and deposit of banks
bankers and national banking associations,
except such as are now due and payable
would seem to support the view that Con-
gress by the act of 1877 did not intend to
exempt the shares of rational banks from
taxation.
The Proper Method.
THE only way to bring the matter to the
attention of the court again is to furnish
the national banks with blank schedules,
as provided in section 10 of the act of
March 3, 1877, and to levy assessments
against them as provided in that act. If
the banks rely upon the decision of the
General Term of the Supreme Court of the
District of Columbia in the case above re-
ferred TO and deny the right of the COM
missioners to levy personal tax upon their
shares they will go into court and under
take to enjoin the collection of the tax and
thus raise the question whether they are
liable to pay personal taxes under the act
of 1871
so far as taxes for antecedent years are
concerned the Commissioners are without
authority to levy them. The statute does
not contemplate retrospective assessments,
but prospective. Under all the crcum-
stances, in my judgment, there should bu
another attempt to apply existing law to
the enforcement of the collection of per-
sonal taxes against national banks in this
District before application Is made to Con-
gress for further legislation"