Comm'rs Of Beaufort County v. Old Dominion S. S. Co. Supreme Court Of North Carolina

Decision Date07 June 1901
Citation39 S.E. 18,128 N.C. 558
CourtNorth Carolina Supreme Court
PartiesCOMMISSIONERS OF BEAUFORT COUNTY. v. OLD DOMINION S. S. CO. Supreme Court of North Carolina.

OLD DOMINION S. S. CO.

TAXATION—ASSESSMENT—FOREIGN CORPORATIONS—STEAMBOAT LINES—CAPITAL STOCK—APPEAL.

1. Where a tax is laid on the capital stock of a nonresident steamboat corporation operating within a state, such proportion of the whole value of its capital stock as the value of its tangible property within the state bears to the value of all its tangible property can be taxed as capital stock within the state.

2. Under Laws 1899, c. 15, § 39, providing that the corporation commissioners shall constitute a board of appraisers and assessors for railroad, telegraph, canal, and steamboat lines, an assessment of taxes on the capital stock of a steamboat company by the county commissioners was void.

3. Where the act levying a tax provided that the corporation commissioners should assess the same, and the assessment was made by the county commissioners, the court on appeal would take notice of the defect of its own motion, though the question was neither raised by exception at the trial nor by motion on appeal.

Appeal from superior court, Beaufort county; McNeill, Judge.

Action by the commissioners of Beaufort county against the Old Dominion Steamship Company. From judgment for defendant, plaintiff appeals. Affirmed.

W. B. Rodman, for appellant.

Gilliam & Gilliam, for appellee.

CLARK, J. The defendant having "domesticated" under the Carig law (Laws 1899, c. 02) the question here presented is how much of its capital stock should be taxed in this state. Upon the facts agreed, the capital stock is $1,250, 000 in all listed for taxation in Delaware. The defendant does business in several states, and the value of its tangible property in this state, —steamers, warehouses, etc., —is $62,000, all of which is listed for taxation. It has no separate capital stock as a domesticated corporation, its business and property here being part of the general corporation, chartered and doing business in several states. In Durham Co. Com'rs v. Blackwell Durham Tobacco Co., 116 N. C. 441, 21 S. E. 423, it is held that "capital stock" is a distinct subject of tax-ation from "shares" of capital stock, the former belonging to the corporation and the latter to the individual stockholders. It was held, following the uniform decisions here and elsewhere which are cited, that it was "within the legislative power, in respect to corporations, to levy any two or more of the following taxes simultaneously: (1) On the franchise (including dividends); (2) on the capital stock; (3) on the tangible property of the corporation; and (4) on the shares of the capital stock in the hands of the stockholders, —taxation on the last two being imperative under the constitution. Under section 39, c. 15, Laws 1899, the assessed value of the real and personal property of the corporation is directed to be deducted from the aggregate value of the shares of stock, and the difference; if any, to be listed for taxation; the object being evidently to avoid double taxation, though the legislature could authorize it. Durham Co. Com'rs v. Black-well Durham Tobacco Co., supra. The defendant, having no separate capital stock as a North Carolina corporation, contends that it cannot be taxed here, because it is a nonresident corporation. It is settled that it is a domestic corporation (Debnam v. Telegraph Co., 126 N. C. 831, 36 S. E. 269), so far as jurisdiction is concerned. As to matters affecting taxation, it makes no difference whether it is a North Carolina corporation or not. Whether domesticated here or not, the business and operations here are practically a part of the larger corporation doing business in several states (2 Mor. Priv. Corp. §§ 994, 996); and therefore, as repeatedly held in the United States supreme court, whenever a tax upon the capital stock of corporations is laid, "such a proportion of the whole value of its capital stock as the length of its lines within the state bears to the length of its lines anywhere" can be taxed as capital stock in this state. Telegraph Co. v. Taggart, 163 U. S. 1, 16 Sup. Ct. 1054, 41 L. Ed. 49. As our statute directs the value of its tangible property to be deducted, the sum of $62,000, the value of the defendant's tangible property in this state, should be deducted from the proportion of the valuation of the whole capital stock, which, by above rule, should be proportioned to this state, and...

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4 cases
  • Person v. Board of State Tax Com'rs
    • United States
    • North Carolina Supreme Court
    • December 20, 1922
    ... ... No. 250. Supreme Court of North Carolina December 20, 1922 ... from Superior Court, Franklin County; Calvert, Judge ...          Petition ... ...
  • Brown v. Jackson
    • United States
    • North Carolina Supreme Court
    • March 31, 1920
    ... ... JACKSON, SHERIFF, ET AL. No. 289. Supreme" Court of North Carolina March 31, 1920 ...   \xC2" ... from Superior Court, New Hanover County; Stacy, Judge ...          Suit by ... ...
  • Motsinger v. Perryman
    • United States
    • North Carolina Supreme Court
    • June 19, 1940
    ... ... PERRYMAN et al. No. 745. Supreme Court of North Carolina June 19, 1940 ... [9 ... Commission. Commissioners v. Old Dominion Steamship Co., ... 128 N.C. 558, 39 S.E. 18; ... ...
  • Commissioners of Beaufort County v. Old Dominion S.S. Co.
    • United States
    • North Carolina Supreme Court
    • June 7, 1901
    ... ... OLD DOMINION S. S. CO. Supreme Court of North CarolinaJune 7, 1901 ... Carolina corporation, contends that it cannot be taxed here, ... ...

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