Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1902-02-18

words. il is urged that the require
| ment imposed upon such corporations
to make return of their property,
| takes the place of an actual return
and taxation, and makes the exemp-
ton available. though the require
ments be not complied with; the test
of the exemption being, 1t is said, not
| in the location or situs of the property,
| nor in fact of its actual taxation. but
solely in the fact that the corporation
| is domestic one, which Is required
to list its property. That construction,
| it must be admitted, changes, and
somewhat enlarges the terms Of the
exemption as expressed in the stat
ute. 1t will be observed that no dis
tlnction is made by section PA be-
tween domestic and foreign corpora
tlons with respect to their duty of list
ing property for taxation. Its Ian
guage is that, every corporation lex
cept those whose taxation Is other
wise specifically provided for) for
NlultNtI DuIDDSt IitN hdNt bftI
created whether incorporated by any
law of this State or not, shall list for
taxation, all the personal property,
which shall be held to include all such
real estate as is necessary to the daily
operations of the company, moneys
and credits of such company or cor
poration within the State, at the actual
value of money, etc. Nor is any dis
tinctlon made by section 2746, with
respect to the right of exemption from
taxation of investments in the stocks
of domestic corporations, and in those
of foreign corporations. Its language
Is that, mo person shall be required
TO list for taxation any share or
shares of the capital stock of any
company the capital stock of which is
taxed IN the name of such company"
SO that, investments In the stocks of
any corporation, foreign as well as
domestic, are exempt from taxation
when the capital stock of the corpora
tion is taxed in its name in this State;
and no Investment in the stocks OF
either class Of corporations Is so ex-
empt, unless its capital stock Is so
taxed in its name The obligation
imposed by the statute upon each
class Of corporations to return their
property for taxation is not equiva-
lent to it's actual return and taxation,
nor sufficient to entitle the shareholder
TO the exemption of his shares from
tn Xation. The purpose Of this provls-
ion of section 2746, was, as Is declared
in Bradley V. Bauder, 3B Ohio St, 2S,
"to exempt from taxation the shares of
stock in (alD corporations, where the
State mad exercised the right to tax
the capital stock in the name of the
company" but not otherwise. The
right OF exemption, therefore, cannot
arise where the property Of the cor
poration is situated without the limits
and taxing jurisdiction of the State,
for in such cases there Is no means
by which the right or power of the
State to tax the property in the name
of the corporation can be exercised.
1t seems to be settled by the former
adjudication of this court that the term
Capital stock" as used in section
2746, includes the personal property
which by section 2744, corporations
are required to return for taxation;
Jones V. Davis, 35 Ohio St, 476; Lee
V. Sturges, 46 Ohio St, 100; Hubbard
V. Brush, 81 Ohio St, 255; Sturges V.
Carter, ia U. s., 511; and, since our
taxing statutes can have no extra ter
rtoral operation, nor the taxing pow
or of the State be exercised beyond
its territorial limits, the tangible prop
erty of domestic corporations situated
outside of the Stae necessarily escapes
taxation here. Shares of their stock,
however, held by citizens of this State,
are within the control OF the statute
and nre made the subject of taxation
separate and distinct from the cor
poratc property. Investments in cor
porate stock are classified with in
vestments in bonds and other securi-
ties, and the former like the latter are
generally income producing and pro-
titable investments, and subject to tho
same rules of taxation, except, how
ever, that the former are exempted
from taxation under the statute when
the property of the corporation Is tax
ed In this state The right to this
exemption does not depend upon
whether the corporation Is foreign
or domestic one, nor on the statutory
duty to make return of lts cOrnora ta
property, but upon It's actual return
and taxation In this State. Hubbard
" Brush, 81 Ohio St, 252 This is as
far as any right of exemption is ex-
pressly given. The court is without
power to enlarge It, The statutory
rule on the subject is contained in sec
tlon 273l, which provides that: "All
property whether real or personal in
this State and whether belonging to