The Bismarck tribune., 1922-05-17
NATIONAL, And
STATE BANKS
TO PAY TAXES
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
g. tabulation covering the basis Of
settlement agreed upon in regard to
National Bank taxes for the years
1919, 1920 and 1921, and state bank
taxes for the year 1920 and 1921, be-
tween state officials, and the execu-
tive committee of the State Bankers
Association The tabulation shows the
amount of money each bank is assess
ed for under the former assessments
and the amount Of the balance be-
tween the bank and the county, with
the completion Of 1921 collections.
After the circuit court Of appeals OF
the United States had declared invalid
taxes assessed against national bank
stock for the year 1919, and the su-
preme court Of North Dakota had de-
clared invalid taxes assessed against
both state and national banks for the
years 1920 and 1921, the state admins
tration was confronted by many ques-
ton. The court decision involved tax
,es amounting to $1,58S,145. Part of
this amount had been paid, almost all
of it under protest, and under these
court decisions such part of these tax
es as had been paid under protest
would be subject to refundment. The
administration considered calling a
special session of the legislature 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 legislature pos
sessed power, to pass a law which
would make possible a valid assess
ment against bank stock for the
years invplvad.s The legislature had,
in specific language, stated that mo-
ney and credits, including stocks and
bonds, should be exempt from taxa
ton and the supreme court had de-
clared that such specific language
could not be interpreted to mean any
thing other than what it plainly said.
The only thing which special session
of the legislature could certainly ac-,
complish was to provide for a valid
assessment against bank stock for
the year 1922. :
The executive committee of the
North Dakota Bankers Association
conferred with state officials and Of
fered to pay taxes upon the basis OF,
class of personal property upon their
bank stock, taking the definition OF
class 2 in chapter 230 Iof the Session
Laws of 1919 with the further stipu-
lation that the same basis should be
used for the year 1922. To have called
a special session would have meant
that all unpaid taxes against bank
stock for the years 1919, 1920 and
1921 amounting to $1,114,17O would
be lost, and that a large amount al
ready paid under protest would have
had to be refunded.
District meetings Of bankers have
been held in every part Of state, and
according to attendants at the meet
ings, all banks represented at SUCH
meetings, with one exception, have
agreed to pay taxes on the basis Of t
proposed settlement. The total amount
of taxes in litigation for the years
1919, 1920 and 1921 amounted
S1,5SS,l45.64. Under the terms OF the
settlement, banks are to pay total
of $749,072.G9.
This sum which includes the amount
already paid and to be paid under the
agreement is divided among the va
rious counties as follows: