The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1923-07-26
Tax Commission Hands
Down Ruling Regarding
Taxation of Banks.
RAPID CONSTRUCTION
Kenosha Banks Interested in
Ruling as They Have All
Asked for Rebate.
(By Associated Pressl


A ruling which will determine the
action of the city council acting as a
board of review on the petitions filed
by the various banking houses of Ke-
nosha to the effect that taxes on bank
stock should be rebated on the grounds
that they are illegal was handed down
by the state tax commission recently
and made public today. The state
ment given out by the, commission
goes into detail maintaining that the
law passed by the recent state legisla-
ture will hold water" and that it
conforms with the act of congress au-
thorizing all of the states to tax all
real estate of national banks and eth
err to tax the capital stock as property
or tax the income from the bank.
The ruling is expected to be the
basis of a new conference of the coun-
Gil sitting as a board of review with
the banks of the city that are interest
ed in the ruling.
Statement Goes Into Detail.
The statement of the tax commission
follows:
Chapter 391 of the 1928 session laws
authorizes the assessment of bank
stock under section 70.37 of the stat
utes in substantially the same man
ner as heretofore. In our opinion it
is effective for that purpose. Under
this statute real estate owned by banks
is required to be separately assessed
in the same manner and on the same
basis as other real estate; the aggre-
gate value of the capital stock of the
bank should then be determined based
upon capital, surplus and undivided
profits, volume of business and earn
ings; the assessed value Of all real
estate owned by the bank to the ex-
tent that it entered into the valuation
of the stock may then be deducted
from the aggregate stock value; the
remainder of the stock value divided
by the number Of shares outstanding
Der of shares held by each stakeholder
and the quotient applied to the num-
will give the assessment to be made
against him in the district in which
the bank is located.
Applies to 1928 Assessment.
"Under chapter 391, the assessment
may be deducted from the aggregate
stock value properly ascertained. Both
the act of congress and section two Of
chapter 391 exclude private loans from
the definition of moneyed capital as
used in the federal statute, but in
cludes investment companies employ
ing capital in competition with nation
al banks. The statute does not indi-
cate what companies are referred to
by this term, but it is probably con-
fined to certain bond companies and
possibly building and loan associations.
Our law already requires trust COM
panies to be assessed in the same man
ner as national banks Local asses
sors and boards Of review, however,
need not concern themselves with this
provision of the statutes. They should
proceed to assess the stock Of both
state and national banks according to
the terms of section 1887 of the stat
utes as amended.
''The act specifically provides that
it shall apply TO the assessment of
1923. In all cases where the assess
ment has not been completed and the
local board of review is still in SEES
sion, bank stock should be assessed or
the assessment thereof corrected &C
cording to the new law. In districts
where the board of review has adj
journed sine die and the original as
sessment was erroneous for failure to
allow deduction of real estate or other
cause, the tax commission recommends
that a conference of the assessor,
clerk, board of review and taxpayer be
called, and if they can agree to val
uation, the clerk may insert the same
on the roll under section 1852 of the
statutes"