The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1924-06-05
BANKS LOSE IN
TAX DECISION
AID Valorem Taxes to Be
Assessed Against State
and National Banks.
NOT AGAINST OTHERS

Madison, Wis. - Ad Valorem taxes
will be assessed against state and ma
tional banks in Wisconsin the same as
last year, according to decision an
nounced today by the state tax COM
mission The assessments will be
made under the law passed by the 1928
legislature, under which banks of the
state will be required to pay nearly
S1,5O0,000 more in taxes than under
the income tax system.
Building and loan associations, bond
brokers and similar agencies are held
by the commissions decision not to be
in competition with banks and will
not be assessed in the manner SINH
lar to banking institutions.
A letter was directed by the COM
mission to call tax assessors in the
state, advising the procedure for as
sessing banks. The commissions rul-
ing is contrary to the contention of
banking institutions of the state and
will mean test of the tax question
will be carried to the supreme court,
probably to both the state and nation
al supreme courts.
Excerpts Other Firms.
In its letter to tax assessors, the
commission declares that the law pas
sed by the last legislature regarding
assessment of taxes against banks does
not apply to investment and loan firms
because the method of assessing such
firms is provided under other laws.
"Other individuals and organizations
engaged in the securities investment
and loaning business under the laws of
this. state are sharply differentiated
from organizations engaged in bank
ing the commissions statement de-
clares. "None of them are organized
as banks or allowed to do banking bus
mess. Insofar as they compete with
the banks at all, the competitor is in
dividual and limited and it is believed
that none of them can encroach on the
main function of banks or use money
ed capital in competition with them,
within the meaning of federal stat
utes.
"After an extensive investigation of
the character and methods of business
followed by these institutions, and re-
ceiving legal advice in reference there
TO, Inc TAX COMMISSION Is OIL the OpIH-
ion and respectfully advises all asses
sing officers that none Of such indi-
viduals, companies or associations are
engaged in the banking business and
none Of them are using moneyed capt.
tai in competition with national banks
as defined in the federal act, and that
none of such institutions are required
to be assessed in the same manner as
banks"
Describes Method Used.
The method for assessing state and
national banks was prescribed by the
commission as follows:
1. By assessing all bank real estate
to the banking company in the district
in which such real estate is located
2. BY determining the cash value
of the entire capital stock of each bank
on the basis of its verified assets
liabilities and earnings.
8. By then deducting the assessed
valuation of all real estate assessed to
the bank from the aggregate value of
its stock.
a. BY dividing the balance of the
stock assessment by the number OF
shares outstanding to determine the
value of each share.
s. By multiplying the number OF
shares held by each stakeholder by the
value of each share to determine the
amount of his assessment.