The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-06-11
HIGH COURT
TO RULE ON
BANK TAXES
Case Before Supreme Judge
of Vital Importance to
n, ID. Institutions

OF vital Importance to all banks in
the state as we'll as to the legisla-
ture is the case pending in SUPREME
court Of the State Bank Of Flaxon
vs.. Burke county in which the bank
is resisting collection Of taxes.
Tax Commissioner Thoresen was
instrumental in bringing the case
to the high court after tic district
court had issued an injunction re
straining the Burke county sheriff
and treasurer from forcing collection
of taxes.
History Of Case
The history of the case goes back to
1919 when the legislature passed law
exempting money and credits includ-
ing stocks and bonds from taxes One
bank in Cass county claimed eXemp-
ton from taxes under this law end
the Supreme court later upheld its
claim.
In spite of this decision manv
banks paid assessments voluntarily
while about twenty refused to be
assessed. To remedy this condition
law was passed in 1923 which pro-
vided that taxes for four previous
years be validated and confirmed. The
State Bank of Flaxon holds that this
law is unconstitutional The law
which validates bank stock taxes fol-
lows:
Sec L. All taxes levied and as
and 1922 upon bank stock are hereby
validated and confirmed and shall be
given full force and effect by all ad-
-. :~l IL l.
notwithstanding the language con-
tanned in Section 1 Of Chapter SO Of
the Special Session Laws of 1919 and
Section of Chapter $50 Of the Laws
of 1917 purporting to include stock
as money and credits in the exemp-
tion given to money and credits.
Sec. 3. 1t is hereby declared to be
the public policy Of this state. recog-
nized for many years, that all classes
Of property owners possessing a con-
siderable amount of taxpaying abili-
ty shall contribute to the expense of
government in proportion to their
relative abilities to pay, AMI that
owners possessing such taxpayins
ability, and that the inadvertc in
clusion in the legislative enactments
of the 1917 session and the 1919
special session of a mistatement of
the law and Of fact in that it is
therein inferentially stated that cor
porate stock is credit, does not and
did not indicate a deliberate depart
ure from established legislative poll
cy, and it is further declared to be in
harmony with sound public policy
that bank stocks of the several banks
should be assessed upon and should
be taxed upon uniform basis, and
that such stockholders as have not
paid taxes for the years in a ques-
ton should be required to pay taxes
upon the same basis as those who
have already complied with the terms
OF the settlement above referred to;
and that this exercise Of the linn tied
power to enact retrospective legisla
tlon is in furtherance of firmly es-
tabllshed and universally recognized
principles of justice and equity.
Exemption Not Intended
The law exempting money and
credits from taxation was not intend
ed to exempt banks, Commissioner
Ihoresen pointed out. The law vail
dating the collection of taxes on
banks was passed to correct an ere
ne said. To show the extent ia
which the tax collections ON banks
had deprecated on account of the
supreme courts Interpretation of the
law, the commissioner said that on
twenty millions of bank property, ex-
cept real estate and personal, only
s4.ooO IN taxes was collected, or a
little more than 81 per bank.