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

May 2, 1918. Desiring to practice
what i 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
l., 60 for a week to my farm to sec
what can be done for the, allies. ?: F.
AS the tax question seems to be one
of general interest and concern to the
people of the state, /, recently gave
you my formal opinion on the valid
ity Of the motor vehicle or altOmo-
bile tax. Here is my opinion on the
constitutional vadility OF statutes TIM
posing a tax on notes and MORTGAGES
hot held nor owned in this state.
State ex rel LANCER vs.. Packard. ct al.
Robinson, j.: This suit challenges
the validity OF Chapters 229 and 23u,
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 domi-
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.) W.T.
Chapter 23o provides that all mon
evs and credits must be listed for tux
alton and that in lieu Of all other
taxes, the same shall be subject to
an annual tax of 3 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 tho city, village
or township. and one-third to tins
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 OF
non.residents What a person does
by another he does by himself. Hence
when a resident agent does represent
nonresident in carrying on a iarm
loan agency or any business, the
property, credits, notes and mort
cages obtained, held and used by him
have a local situs and domicile ano
are subject to taxation. Sucn has
always been the law of this state.
Before the passage Of the two acts
nonresident property Of every kind IN
Guiding money and credits having 4
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 thai
the real purpose of those acts was tc
levy a 3-nill tax on the credits OF
all non-residents when secured on
lands in this state. Ia, ~ ST..
The REALTORS show that they; DO no,
reside in this state and they carry or
mo business within the state, but they
do purchase notes and mortgages Sc
cured on lands in the state, and de
PENDANTS show purpose to assess
such notes and mortgages and to levy
thereon a 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 nc
form of expression could add anything
to it's obvious truth. : I
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 state
has jurisdiction to levy taxes on prop
erty, money or credits which are he'd
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
go .- h frr --- q.