Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-11-17
BONDS AND NOTES HELD
BY NONRESIDENT EXEMPT
Supreme Court Rules Evidences OF
Credit Have No Situs OF
Taxation Here.
FIND BUSINESS DoMlCILE
Can ASSESS Documents at Holders
or Agents O1ice-Judge Sims Dis
sents in Four Opinions on First
Opinion Day on Bench.

Sents in -Four Opinions on First
Opinion Day on Bench.
Deciding Squarely against the con-
t.ntion of Attorney General John Gar
land Pollard, tho Supreme Court of Ap-
peals yesterday held that bonds or
Eotes. evidences of credit in the hands
OF a nonresident, arising from bust
ness transactions in this state and Sc
cured by trust deeds on lands In Nir-
cinla. have no Situs of taxation here
unless such documents may be assessed
at tho holders business domicile in
this state or at that Of his authorized
agent or representative.
The opinion of the court was rem
dercd by Judge Richard IL. CardwcI
the retiring chief justice. and was II
reversal of the Circuit Court OF rage
County. which dismissed the applica-
ton of J. v Jamison, - resident Of
Ifagerstown, Md. petitioninE for relief
from taxes assessed by the examiner
| amounting in tho aggregate 10 s"6.65o
and secured by deeds of trust OH GER
tain lands situated i'm Rage County
JamiSon was conccdedly without thu
jurisdiction OF tho state. TIL. bonds
were not held in Virginia. but were in
| tho hands of Jamison in Maryland lie
| paid taxes on them in that state. There
| holder iii Virginia. nor WAS IL cstab-
| lished that he had ever employed a
| legal representative i'll this state.
| Janison personally collected money
due on notes H. held, and purchased the
bonds without the assistance OF an
agent.
LOGAI.ILATION OF BUSINESS
GIVES STATE RIGHT TO TAN
The Attorney General, in his arcu-
mcnt before tho court, held that the
test Of the States right Ia tax these
evidences of credit WAS not their pres
enc. in Virginia. not the jurisdiction
over the person Of tho owner, nor the
intervention OF an agent but the local
ization Of the business from which
they arise 1t WAS contcndcd that
.Iamison was not a casual investor in
Virginia property, but conducted a reg
ularly constituted business in this
state.
Against this contention the court
ruled that 'ccrtainly II cannot lie ar
hitrarily said that because .iamisun had
many loans in Page County. tho evil
drnccs of tho loans. which are the sub
, icct of this controversy, are asScsSab bic
for taxation in Page County hy reason
OF the debtors having their residences
in the county, or because the land
which is security for the bonds or
notes is situated i'm Page County since
tho statute. instead OF so providing
expressly STIMULATES that such bonds
| or notes are asscssablc, if at all at the
| business comicilc OF such nonresident
in this state.
J III seems clear 10 us from the read
ing of the statute as a whole that so
far as applicable in this case. its mean
| inv is th,, ,,bcra , ,onr..id.,,, 49,
| son or corporation comes into Virginia
| aud establishes "a place of business IA
| buy bonds or notes and thus loan noncr
| and have obligations due arising from
! that business he is to n. tnxcd ,,non
| such obligations just as "A citizen OF
| Virginia engaged in /, like businass ;s
| toxca Tho Jay tboronn - ho ...o..o,
a, the business dcmiclo ~ ,nnh ~
| resident persons ar cornor,,ion mr. tic
| agent or commemorative
| I'VE take il for granted ma, i, would
not he contcndcd that. If u nonresident
| were TO come into q hro,<cr.s ot,icc or
| ,ro,a,. =; 60 ~ 'S' '''H
| character rs a loan. and do mis- r.n..,
| eddy. he was engaged in business H., mo
city or county where he made I'M. IN
ya.t,.,, ~ ;,,a.,,..,. '' ''
meaning OF the statute here nnacr con.
sideraiion."
Tho cour, rointea out mn, IN w..
cases cited by Mr.. Pollard in supnor,
of his contentious the transactions r.-
ferrcd to we're conducted within tho
state by agents of the creditor on inc
lattcr's behalf. and called attention 10
| tho ease OF the commonwealth against
the United Cigarette Machine COMPANY.
Il foreign corporation. which w,s t,.,cI
because ii had its credits In the com,
panys office at purmid. Camnbcu
county.
The opinion closed with this CITATION
from court ruling: Laws imposing a
license or "a tax arc strictly construed
an" whenever there is II douh; as 10
INC meaning or scope Of such laws
'heS are construed more strongly
against inc government and in favor
~ me c'ti"en
'tDt; SIMS DIsSE>TS
~ Four or OPINIONS
me court handed down opinions in
~ I'i'"" ing cases with Judge Sims
IVY newest member OF the court as il
""H constituted when the cases came
"s'o.r th"' tribunal dissenting in four
-, 70 -,
10y ~ -. '"fa"cii president
n n f.,.. .I,,