Kyle v. the Mayor

• Decision Date: 30 June 1876
• Citation: 75 N.C. 445
• Court: North Carolina Supreme Court
• Parties: JAMES KYLE v. THE MAYOR AND COMMISSIONERS OF FAYETTEVILLE and J. W. MALLETT, Tax Collector.

75 N.C. 445

JAMES KYLE

v.THE MAYOR AND COMMISSIONERS OF FAYETTEVILLE and J. W. MALLETT, Tax Collector.

Supreme Court of North Carolina.

June Term, 1876.

Shares of stock in a National Bank are proper subjects of State, County and municipal taxation. Such shares owned by non-residents are to be taxed in the city or town where the Bank is located and not elsewhere.

All assessments of property for taxation, under the Constitution, must be made by the Township Board of Trustees.

( W. C. & A. R. R. Co. v. Commissioners of Brunswick, 72 N. C. Rep., 15, cited and approved.)

This was a CIVIL ACTION, for injunction and other relief, heard before His Honor, Judge BUXTON, at Chambers, in CUMBERLAND County, on the 20th day of November, 1875.

Plaintiff alleged in his complaint that he is a non-resident of the State; that he was the owner of one hundred and eight shares of stock in the ““People's National Bank of Fayetteville,” on April 1st, 1875; that the same had been placed by the tax list takers for the town of Fayetteville upon the tax list, and that plaintiff had been assessed the sum of $182.50 as taxes thereon; that the tax list had been placed in the hands of the defendant Mallett for collection, and that he had levied upon certain real estate of the plaintiff, and advertised the same for sale, to satisfy said tax assessment. Plaintiff asked that defendants be restrained from selling said property, &c.

Upon this complaint his Honor granted a restraining order, and an order to defendants to show cause on November 20th why an injunction should not be granted as prayed for.

Defendants in their answer admitted the main allegations of the complaint, but they insisted that the tax assessed on plaintiff's shares of stock was uniform and at the same rate as was levied upon all other property subject to taxation in the town of Fayetteville, and that the same was valid and according to law.

Upon the hearing, his Honor held that the assessment for taxation of plaintiff's shares of stock by the authorities of the town of Fayetteville, and all proceedings thereunder were without authority of law, and granted the injunction.

From which order defendants appealed.

Ray, for appellant .

McRae & Broadfoot, contra .

BYNUM, J.

It is admitted that the town of Fayetteville possesses the power of taxation for corporate purposes, by virtue of its charter and the general laws of the State.

This concession, we think, is decisive of the case before us. For whenever the power is exercised, all taxes, whether State, county or town, by force of the Constitution, must be imposed upon all the real and personal property, money, credits, investments in bonds, stocks, joint stock companies, or otherwise, situate in the State, county or town, except property exempted by the Constitution. Art. V, secs. 3 and 7; Art. VII, sec. 9.

It is the provision, and was the purpose of the Constitution, that thereafter there should be no discrimination in taxation in favor of any class, person, or interest, but that every thing, real and personal, possessing value as property, and the subject of ownership, shall be taxed equally and by a uniform rule.

In this respect the present Constitution shows no favors and allows no discretion. If, then, the town of Fayetteville has the power to tax, the Constitution steps forward and commands that all property shall be taxed and by a uniform rule. Shares in a National Bank are investments in stocks, and comprise the largest portion of the monied wealth of the country. They are not only a proper subject of taxation in themselves, but are made taxable expressly both by the Constitution of the State and the National Banking Act which brought them into existence and stamped upon them their character. National Bank v. Commonwealth, 9 Wall., 353; 4 Wall., 244. The...