The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-06-15
Not to Deduct Debts From Bank
Stock Alone.
RULING BY STATE TAX COMMISSION
IMPORTANT QUESTION SETTLED
ON APPLICATION OF ADVICE
FROM ASSESSOR NOBLE.

A ruling on bank stock taxation has
been made by the tax commission in
the following letter written by Chair
man j. H. yesterday, OF the board,
to Sidney G. Noble, assessor of Lin
coin county:
Your favor, inclosing affidavits of
parties asking for a deduction of their
indebtedness from the taxable valua-
ton of stock owned by them in bank
! ing institutions in your county, is be-
| fore us for consideration
1t has been held by our supreme
| court that bank stock is credit with
| in the meaning of section section 2,
which bona fide indebtedness owing
within the state of Washington may be
deducted, providing that the exemption
is properly claimed by the party ask
ing this deduction. Before this deduc-
ton can be allowed all of the require
ments of the statute must be fully
complied with and set forth in the at
fidavit of the party demanding this de-
duction. The requirements, plain and
ambiguous, are found in section !, page
8, in the acts of 1901. Briefly stated.
it is required that all credits including
accounts. notes, bonds, certificates of
deposits, chooses in action, and all other
debts of whatsoever nature, due or to
credits for the purchase of real es-
tate, shall be set out, and from the
total value of all such credits there
may be deducted therefrom any indebt-
edness owing by the claimant in the
state of Washington, and the remain
der only shall be subject to taxation.
Bank Stock Easiest to Find.
I'm the affidavits that are below US.
before us the affidavit fails to set up
that the bank stock is the only credit
that is due him. For aught that you
can tell there may be owing him many
which credits may take. From the
form of this affidavit the affiant evil
IDENTIFY believes that he may single out
some specific credit and ask a deduc-
ton thereon without setting out all of,
and the gross amount of his credits.
Such is not the spirit nor the letter
Of the law. 1t is a remarkable coinci-
dence that people asking deductions
Of debts from credits usually find
only the item of bank stock for this
purpose. 1t is also remarkable that
professional men, traders and others,
the first day of March of each year
have not a semblance of a credit or
debt due them, save and except bank
stock. 1t is possible to account for this
phenomenon in but two ways: One is,
rare discernment in approaching the
value of bank stock as an investment;
and the other is, that the ownership OF
bank stock is a matter of public rec
ord, while other forms of credit are
not.
Must Enumerate All Credits.
an the s2davits that are before us.
you will permit the affiants to amend
the same, and either state that the
bank stock is the only credit owned
by them, and make the deduction of
Indebtedness therefrom, or. they may
set forth the gross amount of credits
and from this gross amount you will
allow the Indebtedness, and pro-rate
the difference amongst the several
items of credit that go to make up this
amount In no instance will you al
low indebtedness owing in the state or
Washington to be deducted from the
gross amount of all credits"