The weekly times-record. (Valley City, N.D.) 1912-1922, 1922-05-25
NATIONAL AND IS
STATE BANKS{
TO PAY IT, .ES
State Tax Commissioner Certifies
\ Tabulation Of Taxes Agreed Upon
To Be Paid. Settled on $3.50
Basis.

The State Tax Commissioner has
certified out to the County Auditors a
tabulation covering the basis of SET
tlement agreed upon in regard to Ma
tional Bank taxes for the years 1919,
1920 and 1921, and state bank taxes
for the year 1920 and 1921, between
state officials, and the executive COM
mittee of the State Bankers Associa-
ton. The tabulation shows the amount
of money each bank is assessed for
under the former assessments and the
amount of the balance between the
bank and the county with the COM
pletion of 1921 collections.
After the circuit court of appeals Of
the United States had declared inval-
id taxes assessed against national
bank stock for the year 1919, and the
upreme court of North Dakota has de-
clared invalid taxes assessed against
both state and national banks for the
years 1920 and 1921, the state admin
istration was confronted by many
questions. The court decision involv-
ed taxes amounting to $1,588,145.
Part ofthis amount has been paid, al
most all Of it under protest, and un-
der these court decisions such part of
these taxes as has been paid under
protest would be subject to refund
ment. The administration considered
calling special session of the legisla-
ture to remedy the defective acts Of
1917 and 1919 which had created a
situation whereby any tax levied
against bank stock was illegal. There
was doubt however, whether the legis-
lature possessed power to pass a law
which would make possible a valid
assessment against bank stock for the
years involved. The legislature had
in specific language, stated that mon
ey and credits, including stocks and
bonds, should be exempt from taxa
ton and the supreme courthad de-
clared that such specific language
could not be interpreted to mean any,
thing other than what it plainly said.
The only thing which a special ses-
sion Of the legislature could certainly
accomplish was to provide for valid
assessment against bank stock for the
year 1922.
The executive committee of the N.
D.. Bankers Association conferred
with state officials and offered to pay
taxes upon the basis of class 2 of per-
sonal property upon their bank stock,
taking the definition Of class 2 in
chapter 23O of the Session Laws of
1919 with the further stipulation that
the same basis should be used for the
year 1922. To have called a special
session would have meant that all un-
paid taxes against bank stock for the
years 1919, 1920 and 1921 amounting
to $1,114,170 would be lost, and that
a large amount already paid under
protest woul dhave had to be refund
ed.
District meeting Of bankers have
been held in every part of the state,
and according to attendants at the
meetings, all banks represented at
such meetings, with one exception,
have agreed to pay taxes on the basis
of the proposed settlement. The total
amount of taxes in litigation for the
years of 1919, 1920 and 1921 amount
ed to $1,588,145.64. Under the terms
of the settlement, banks are to pay a
total of $749,072.69.
Barnes county banks will pay into
the county treasury $30,574.44.