Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-04-25
BOARD OF EQUALIZATION

u II
Saturday morning.
BOARD OF EQUALIZATION -s--
The county board of equalization
met in the office Of the auditor Tues
! day, pursuant to the call Of that off,
cial, and after organization by the
re- election of Thos. L. Johnston as
chairman, gave consideration to vari-
bank assessments, which has. been
prominently to the fore in this county
since last year. .-..
Previous to last year, 1t seems only
! a few Of the banks owned nom taxable
bonds, and the common practice in
returning them for taxation, was to
subtract their aggregate from the ag-
gregate value Of the bank shares be-
fore setting off go per cent or 30 per
cent Of the remainder for taxation.
Last year there was general adoption
Iiof new rule, under which the aggre-
gate value Of the shares was cut in
half and the value of the non-taxable
bonds was taken from that. This
amount for which the banks claimed
to be liable, very materially, and In at
least one instance, wiped out tax liza
bility. ..1... .,
The comptroller general has all
along been claiming that this new de-
parture is unlawful and wrong, and
still 80 holds. He insists that under
the law, the only bond issue that is
really exempt is the South Carolina
Brown redemption bonds, and that
while 1t Is proper to subtract these
bonds from the 30 per cent Of capital,
surplus and profits. liable for taxation,
In the case Of all other bonds, the sub
traction should be made from the
setting or the 30 per cent liable to
taxation.
When the matter came up for dis
cussion Tuesday, Auditor Love sub
mitted to the board the returns made
by the different banks with the en-
dorsements Of the comptroller general
thereon. The auditor explained that
the returns had been sent to the comp
troller In obedience to instructions
from that official, and along with the
returns containing the comptroller
notations, he gave the board the comp
troller's letter as follows: ...
! 4nii Columbia, April s, 1918. q, g.
Mr.. B. M. Love, ri-ii
County Auditor, ,''i
| 90 e,. Yorkville, 8. c..
Dear Sir: -.a it5I l-j .-.'' at,r
beg to acknowledge receipt Of the
bank returns and to herewith return
them with note on each return. do
trust that you will be able to have
your county board to stand by my
ruling in this matter in order that It
may be properly brought up before
the courts by the banks. This Is a very
important matter to the state and not
only affects the taxpayers Of York
county but the decision Of this question
will effect every county In the state.
The question Of exemptions is not a
matter for the board Of equalization;
but 1t is q question Of law. The statutes
Of this state require the comptroller
general of this state to construe the
tax assessment laws, and all boards Of
equalization and officers Of counties
and cities are required to comply
Herewith. have ruled and all the
counties in the state except Charles
ton and York counties, have assessed
banks according to my construction of
the law. If your county board will
carefully read the statutes, special
rules as to assessments and taxation
of banks, they will find that banks are
not assessed for taxation; but the
value Of the shares In the bank are as
sessed and taxed In the name Of the
shareholders. Then the bank, II 1t 80
desires, pays the taxes for the share
holders. a E r'
At the. recent session of the general
assembly, a special act was passed,
amending this statute, which requires
all banks to pay taxes for the share
holders. The only exemption that
should be allowed the shareholders IS
the banks investment in Redemption
L n
state issued under act Of 1892. The act
Of 1892 was amended in 1898, which
specifically states that the sharehol-
ders shall be allowed exemption for the
banks investment In the Redemption
Brown Consol bonds of this state.
The capital, surplus and undivided
profits are taken as measure of the
value of the shares. Where the market
value Of the shares Is we'll known and
established, you will take the market
value Of the shares for taxation.
Please let me know promptly when
the board acts upon these returns, and
II they have allowed any other exemp-
tions, except bonds above mentioned.
... Yours very truly,
"a ....... .... .' A. W. Jones, 's.
.... ...,.. Comptroller General.
IUnder the law, In their returns,
banks are required to give the names
Of all shareholders, and the number
and value Of shares held by each. The
return is made on q specially prepared
blank. and all the returns are 80 made.
For the purpose Of full understand
necessary to reproduce the returns
other than the aggregate values given,
and the method used by the bank In
getting at the taxable values for which
It admits liability. u.
.,a,.'- Bank Of Glover.
Returns total value of shares at
$33, 900, of which amount $16,500 Is de-
clared to be liable for taxation. This
return Is endorsed by the comptroller
general 20. K"
Savings Bank Of Fort Mill
Returns capital, surplus and profits
at $4,000, with so per cent or $18,500
liable to taxation, and this return is
endorsed 20. K" by the comptroller.
Bank Of Hickory Grove
Returns total value Of shares at $1s,-
847.S6, of which $9,425 Is liable to
taxation. The com mptroller made no en-
dorsement on this return.
First N. 3. Of Fort Mill
Makes return as follows:
Capital, surplus and profits -. $685.
Less non taxable Panama t
bonds go. -. 1b,000
... .. ;1,osS
Less so per cent -. ..... 80. SAC
- &c.. &c.,. IT,: sI"541
The comptroller general endorsed on
this return the following:
1.-The shares are not entitled to Gre
dit for banks investment In nom taxa
BILE U. s. Panama bonds. The value Of
the shares equals at least the
Capital, surplus and undivided
prOntS .Slo,Voo
Less so per cent 80. :. ....... 1000