Davis v. Sexton, County Treasurer
Citation | 200 N.E. 233,210 Ind. 138 |
Decision Date | 03 March 1936 |
Docket Number | 26,242 |
Parties | Davis v. Sexton, County Treasurer et al |
Court | Supreme Court of Indiana |
[Rehearing denied May 20, 1936.]
1. TAXATION---Power of State---National Banks.---National banks being agents and instrumentalities of the federal government cannot be taxed by the states without the consent of Congress. p. 145.
2. TAXATION---Collection and Enforcement---Remedies for Wrongful Enforcement---Injunction---Evidence and Burden of Proof.---A national bank shareholder, seeking to enjoin collection of tax on national bank shares, had the burden to prove that the rate thereon was greater than on other moneyed capital in the hands of individual citizens coming into substantial competition with the business of such banks. p. 151.
3. TAXATION---Discrimination Between National Bank Shares and Other Moneyed Capital---Competing Moneyed Capital---Finance Companies.---As regards discrimination in taxation of national bank shares and other competing moneyed capital finance and investment companies, dealing generally in installment paper, held not in substantial competition with the business of national banks. p. 152.
4. TAXATION---Discrimination Between National Bank Shares and Other Moneyed Capital---Evidence of Discrimination.---In action to enjoin collection of taxes on national bank shares at greater rate than assessed to alleged competing moneyed capital in finance and investment companies, special findings that the national bank shares were taxed at their true cash value, exclusive of real estate, and that the capital of finance and investment companies was in substantial competition therewith, without finding the amount of moneyed capital in such competing companies, or that any part thereof was taxed at a less rate, or that any part left untaxed was in competition, held insufficient to show any discrimination p. 153.
5. TAXATION---Discrimination Between National Bank Shares and Other Moneyed Capital---Moneyed Capital---Credits From Which Indebtedness Is Deductible.---The credits defined in section 14103, Burns 1926, from which bona fide indebtedness may be deducted from purposes of taxation, such as annuities, bonds, notes, royalties, money on deposit, shares in building and loan associations, etc., held not "moneyed capital" as contemplated by federal statute prohibiting discrimination in taxation of national bank shares and other moneyed capital in competition with the business of national banks. p. 155.
6. TAXATION---Discrimination Between National Bank Shares and Other Moneyed Capital---"Moneyed Capital."---A person's "moneyed capital," within the meaning of tax laws, is the difference between his credits and his debts, and a tax on the difference is a tax on all he has. p. 156.
7. TAXATION---Power of State---Legislative Power Generally.---What property shall be taxed and how it shall be taxed are questions for the legislature, whose action cannot be disturbed so long as there is uniformity and equality of rate as to those of the same class. p. 157.
8. TAXATION---Corporate Stock and Property---Banks---Shares of Stockholders---Deductions.---In arriving at the value of bank shares for taxation, the credits may be given and bona fide indebtedness deducted therefrom, but the bank cannot deduct debts disconnected from the banking business, nor can the shareholder deduct his individual debts from the value of his shares of stock. p. 158.
9. TAXATION---Constitutional Requirements and Restrictions---Equality and Uniformity---Deduction of Indebtedness From Credits.---Chapter 260, Acts 1921, p. 771 (14103, Burns 1926), authorizing deduction of indebtedness from credits and taxation of balance only, held not violative of constitutional provision for equality and uniformity. p. 161.
10. TAXATION---Constitutional Requirements and Restrictions---Equality and Uniformity---True Cash Value.---There is equality and uniformity of assessment and taxation, within the meaning of section 1, Art. 10, Indiana Constitution, when all property is assessed at its true cash value and at the same rate. p. 161.
From Marion Superior Court; William S. McMasters, Special Judge.
Action by Lawrence B. Davis against Timothy P. Sexton, as treasurer of Marion County, and others to enjoin collection of taxes on plaintiff's national bank shares. From a judgment for defendants, plaintiff appealed.
Affirmed.
Jones, Hammond & Buschmann, Thompson, Rabb & Stevenson, William C. Harrison and Leo M. Gardner, for appellant.
James M. Ogden, Attorney-General, Joseph W. Hutchinson, Deputy Attorney-General, and Charles B. Clarke, for appellees.
As stated by appellant, this is an action by him, as owner of twelve shares of capital stock of the Fletcher American National Bank of Indianapolis, and fifteen shares of the capital stock of the Indiana National Bank of Indianapolis, to enjoin the auditor and treasurer of Marion county, Indiana, from receiving or collecting any tax on said shares of stock for the year 1929, on the ground that the tax was illegal and void, and in violation of the state and federal statutes, and the Constitution of the State of Indiana, and on the further ground that it was assessed in a method which violated the federal statutes with reference to taxation of national bank shares, and in violation of section 1 of Article X of the Constitution of the State of Indiana.
As further stated by the appellant, the issue in the case was whether or not section 5219 of the U.S. Revised Statutes was violated by the taxing authorities of Indiana in taxing appellant's national bank shares in that appellant's shares were taxed at a greater rate than competing moneyed capital in a substantial amount in the hands of individual shareholders, the illegal discrimination complained of arising in two particulars: (1) The taxing officials of the State of Indiana refused to permit the appellant to deduct his bona fide indebtedness from the value of his national bank shares, at the same time permitting debt deductions in favor of competing moneyed capital for a substantial amount; (2) the taxing officials of the State of Indiana discriminated against appellant's national bank shares in favor of money invested in finance and investment companies.
The action was brought in behalf of appellant and all others similarly situated against the appellees as treasurer and auditor of Marion county, State of Indiana, the appellant being a resident and taxpayer of Center township, Marion county, Indianapolis, Indiana.
The appellant relies for reversal upon the alleged error of the court in its conclusions of law Nos. 1, 2, 3, 4, 5, and 6, and in overruling appellant's motion for a new trial. He alleges in his motion for a new trial that the decision of the court is not sustained by sufficient evidence, and is contrary to law.
At the request of the parties, the court made special findings of fact, and stated its conclusions of law thereon. The findings of fact are very long, and we will only state so much thereof as we think is vital to the conclusion to be reached in the opinion.
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