The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-05-06

May 2, 1918. Desiring to practice
what l preach, every day since last
August / have been promptly at my
post Of duty in the Capitol. Now,
with the kind consent of the judges
/ go for week to my farm to SEQ
what can be done for the allies.
As the tax question seems to be one
OF general interest and concern 70 the
people Of the state, ! recently gave
you my formal opinion on the valid
ity Of the motor vehicle or automo-
bile tax. Here is my opinion on the
constitutional vadility of statutes TIM
posing tax on notes, and mortgages
not held nor owned in this state.
State OK rel Lan0er-Vs. Packard, ct al.
Robinson, j.: This suit challenges
the validity Of Chapters 229 and 23v,
Laws of 1917. Chapter 229 Is to the
effect that no. nonresident, either by
himself Of agent shall do business
within the state without, paying tax
the same as citizens Of the state and
that all bills receivable, obligations
and credits arising from business done
In this state are assessable within
the state and at the business doml'
cile of the nonresident or his agent
The term Credits" means and in
cludes every claim or demand for
money due or to become due, and all
demands secured by. deeds or mort
cages due or to become due. &c. l.
2074.)
Chapter 2SO provides that. all mon
eys and credits must be listed for tax
alton and that in lieu Of all other
taxes, the same shall be subject to
an annual tax of mills on each dol
lar of the fair cash value. That the
taxes paid under such levy shall be
apportioned one-sixth to the state;
one-sixth to the county; one third 10
the general fund Of the city, village
or township, and iOne+third to the
school district.
These two chapters may be consid
cred as twins. They were enacted at
the same time and for the same pur
pose. They stand or fall together
The real purpose Of each chapter was
to levy 3-mill tax on the credits 0,
non-residents What a person does
by another he does by himself. Hence
when a resident agent does represent
nonresident in carrying on a farm
loan agency or any business, the
property, credits, notes and mort
cages obtained, held and used by him
have local situs and dOmicile ana
are subject to taxation. Such has
always been the law Of this state. i,
Before the Passage Of the two acts
nonresident property of every kind in
Guiding money and credits having q
situs or domicile in the state was,
and still it, subject to assessment and
taxation the same as the property OF
residents. > Hence, it must be that
the real purpose of those acts was to
levy a 3.mill tax on the credits OF
all non.residents when secured on
lands in this state.
The REALTORS show that they DO no,
reside in this state and they carry on
no business within the state, but they
do purchase notes and mortgages Sc
cured on lands In the state, and de-
lSnUdNI0 0nOW \ - puAPOAO W O1o0OoS
such notes and mortgages and to levy
thereon tax OF s-mills on the dol
lar. Now, as held BY the United
States supreme court, all property in
debts belong to the creditors to whom,
they are payable and follow their
domicile wherever that may be.
Debts can have no locality aside from
the parties to whom they are due. This
principle might be stated In many
different ways and supported by cita.
lions from numerous adjudications,
but no number of authorities, and no
form of expression could add anything
to its obvious truth.
So far as debts are held by non.
residents of the state, they are prop.
erty beyond the Jurisdiction Of the
state. Us Wallace 5000. No stA:e
has jurisdiction to levy taxes on prop
erty, money or credits which are held
and used in another state.
In regard to the levying of taxes
the constitution provides thus: The
legislative assembly shall provide for
raising revenue sufficient to defray
the expenses of the state for each
year, not to exceed in any one year