The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-08-24
FOREIGN CORPORATIONS MUST
CONTRIBUTE TOWARD STATE
EXPENSES.
Tax Commission Renders Important
Opinion Affecting Outside compen-
panies Doing Business in State

Foreign corporations in this state
are entitled to fair treatment, but no
favors, but they must pay taxes on
tax certificates, says the state tax
commission in the following letter
sent from Olympia to the assessor
Of Lincoln county:
We have yours with the following
statement:
I'm the matter Of delinquent tax
certificates: F. A. Holman, agent Of
the Vermont Loan and Trust COM
pany, claims exemption from taxa
ton On the grounds that they are
corporation organized under the laws
of Vermont, and that it is an illegal
assessment
A foreign corporation doing business
in this state as provided by law be-
comes, for the purposes of assess
ment and taxation, a domestic cor
poration. The legislature, in our
opinion, never intended to give for
eign corporation any rights or priv
ileges that domestic corporation does
not have. To say that a corporation
organized under the laws of Wash
ington shall pay taxes upon personal
property held by such corporation
within the state, and a Vermont cor
I,o ho
law allowing it to do business in this
state and owning property herein
because it is a foreign corporation
seems too ridiculous for argument.
The rignt they have to conduct their
business and own real and personal
property here naturally carries with it
the idea of bearing their just proper
ton of the burden of taxation upon
the property owned here.
The legislature in providing the
rules under which a foreign corpora
ton can do business in this state
very clearly intends this class of cor
poration to have fair treatment, but
no favors. Section 1921 of Bellinger's
Code, Vol 1, after setting forth the
powers of a foreign corporation do
ing business in this state adds the
following proviso:
provided, however, that this char
ter shall not be so construed as to
allow such foreign corporation to
transact business in this state on
more favorable conditions than are
prescribed by law for a similar corpor-
alton organized under the laws of
this state"
If no taxes can be collected from for
eign corporations on property such as
tax certificates (Which are certainly
as gilt edge security as could be de-
sired) and such certificates can be
taxed in the hands of domestic cor
porations, it would not be long before
all these certificates were held by
foreign cOrpOrdllOHS.
This class of personal property
should be assessed in the county where
the foreign corporation has it's prin-
cipal office or place of business and
if the office Of the company is not in
Lincoln county you should ascertain
in which county it is situated and
send to the assessor for that county
a list of the certificates owned by
the company so that they may be
put upon the rolls in the county en-
titled to assess them.
An opinion is also given to the as
SCISSOR of Lincoln county, who listed
tax certificates owned by the Vermont
Loan & Trust company An agent of
the company claimed exemption be-
cause the property was that of
foreign corporation. The assessor is
advised to furnish a list of tax GER
to the assessor of the county
where the company has it's principal
office.