The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-07-25
TAXES OF CORPORATIONS
ATTORNEY GENERAL CONSTITUTES
THE LAW FOR THE STATE BOARD.
Shareholders of Building and Loan
Associations Are the Ones
Who Pay.

second. banks: third, building associa tons:
Section II of the act Of 1881 (Section s422,
X. 8. 1891 provides that all corporate prop
erty, including stock and franchises, except
where some other provision is made by law,
shall be assessed to the corporation itself.
as natural person would be assessed. Sucn
assessment is to be made against the cor
poration and not the stockholders. Ihis
section covers corporations generally:
are specially provided for by other taxing
laws. The form and statement for corpora
of the act of ISL (Section Sisl, r. S. 1Ss4)
These two sections cover the general sub
Ject of the assessment or corporations IL
is the duty Of the officers of the corporation
to pay the taxes on the corporate property.
Section 16 of the act of 1891 (Section s426
r. S. 1880 provides that the personal prop
township, town or city where such personal
property is situated. Section 50 OF the act
Of 1881 (Section si6s; r; s lssi provides
shall be made. This law provides that the
PROPERTY named in the first, second ana
nrd items n OF s sS secen sha DE in the
fourth, fifth and sixth items shall be listed
as other personal property, and from these
be subtracted and the amount remaining
shall be listed for taxation. The property
of unincorporated banks is, therefore.
the same. There is, Of course, no stock,
and therefore, no stock is to be assessed.
INCORPORATED BANKS.
Clause g. Article II, Of the act Of 1891,
as amended by the act of March s, 1897
(Acts of 1897, p. 300, provides as follows:
Third, all shares in banks shall be assessed
to their owners in the city or town where
the bank is located Section 60 Of the act
Of 1891 (Section $40, r. s. 1S9D provides
that: Shares of capital stock in any bank
located in this State. whether organized I'M
der the laws Of this State or Of the United
States. shall be assessed to the owner
thereof In the township, city or town where
such bank or banking association is To-
Gated Section 81 Of the act Of 1891 (Section
S4Il. r. s. 1ss4; provides how incorporated
banks shall make their statement for taxa
ton. This statement must show five facts:
First. the number of shares of capital
stock; second, the name and residence Of
shares owned by each shareholder; fourth.
the true cash value of each share; fifth. the
on the ist day of April. 1t further provides
that the assessor, in valuing the stock.
shall be governed by the market or usual
at the place where the bank is located, and
III there is no market value he shall deter
mine the actual valuation, taking into con-
slderatlon the surplus and individual (un-
divided) profits. The value of all real es-
tate or other tangible property must be de-
Quoted from the valuation of such capital
stock
''rhus the law provides that the bank. as
a corporation, is not charged with anything
property. The individual stockholders are
charged with the value of the capital stock.
and must pay the taxes thereon individual
~. 1t is the duty of the auditor TO place
on the duplicate the number of shares and
the value against the name of each individ-
ual stockholder: Section s. of the act OF
1891 tSection A75, r. s. 1S94), makes il the
duty Of the bank officers to retain out of the
dividends due the stockholders sufficient to
pay the taxes upon the shares of stock. and
If such bank officers fail TO do they shall
be individually liable for such taxes This
law does not prohibit a bank If 1t so de-
sres, from paying the taxes upon all Of its
shares of stock for its stockholders. 1t is
the custom of some banks to do So The
capital stock of all incorporated banks,
the same way. The taxes on all the capital
STOCK Of the bank must be paid where the
where the stakeholder lives
BUILDING ASSOCIATIONS.
Section SO of the act of 1891 (Sec. S507,
r. S. 1890 provides that each building as
ISOLATION, as such. shall file statement by
its secretary showing: First. the amount
paid into such association by shareholders
upon shares of stock issued by it up to the
first day of April preceding and then out
standing. Second the amount loaned up to
said date to shareholders and secured by
mortgage upon real estate listed for taxa
ton. The association is then assessed for
taxes for the balance then remaining after
such loans were made. 1t distinctly provides
that neither the association nor the share
holders shall be liable TO other taxation
upon the said shares OF stock. This meth
Cd of taxation is superseded by Section
This section provides that all building and
loan associations, as such. shall be exempt
from taxation. Shares of stock. on which
loans have not been made or advanced by
the association, which stock Is paid up or
prepaid, shall be considered and held as
credits of the members individually and
lfCfn hxy haY aT7d o. sod co ms
for taxation as other property
Thus, by this law. the shareholders or
s t.%as OF bne ass9eaons pay Ine
vided by the former law. Where share
holder has borrowed money on his shares
to such shareholder. The shareholders who
have not borrowed money are charged with
the value of their shares of stock. These
shares are held as credits
THE value Of these shares will represent
all the property OF the association, both
real and personal. The act of 1897. supra,
paid stock. The Supreme Court Of Indiana,
Association, s. n: E.. 1853. held that al
or partly paid. is taxable at its true cash
value. 1t is Of no importance to the State
whether the property is charged to the in
provided there is no discrimination against
other taxpayers and all of the property is
taxed.
purely statutory and so wholly covered by
the statute that mere reference to the
statute would not be profitable, nor do /
understand that it Is desired by your honor
able body"
CLAIMS DOUBLE TAXATION.
The board heard the complaint of the
Baltimore & Ohio Southwestern Railroad
Company yesterday. The contention came
up from Davies county, where the company
owns land, and the county wants the right
to tax the property instead Of having the
value of II assessed by the state board.
| The land in question is occupied by the
company shops at Washington. John Hef-
feran attorney for the county appeared
| for the county. w. r. Gardner, attorney
| for the road, said the company had paid
| double taxes on IL for a long time in the
taxes assessed by the county and those AS
sessed by the state board, the land being
| a part Of the system. A suit Is now pend
4 ing in the county TO recover the taxes paid
| in accordance with the county assessment.
The company further asked a reduction OF
| the State assessment because 1t is unable
| to pay interest on its bonds and is heavily
| in debt.
In the afternoon the Indiana. Illinois &
| Iowa road was represented by r. j. Carey
| Of Chicago. who asked a reduction of the
assessment on the road on the grounds
| that IL is a through line and does not
| draw much business from Indiana. The
| line was assessed last year at $1,000 a
| mile for main track $1,000 mile for side
track and 81, 500 for rolling stock.
The representatives Of the Baltimore &
| Ohio Southwestern appeared later and sup
plemented the first statements by laying
| that the line can be replaced for $4,000 a
mile, when II Is assessed at $21 600 mile