McGowan v. Savannah Mut. Loan Ass'n
| Decision Date | 09 April 1888 |
| Parties | McGOWAN v. SAVANNAH MUT. LOAN ASS'N. |
| Court | Georgia Supreme Court |
Error from superior court, Chatham county; ADAMS, Judge.
Bill to enjoin the collection of taxes assessed upon the stock of plaintiff corporation. The defendant's demurrer was overruled, and the injunction granted.
J. R Saussy, for plaintiff in error.
Lawton & Cunningham, for defendant in error.
The shareholders in this association owned shares to the number of 600, 194 of which have not been borrowed or advanced upon. The aggregate value of these unadvanced shares is $59,170. The shares advanced upon by way of loans secured by real estate amount to $94,977, and the loans secured otherwise than on real estate amount to $28,853. Upon returns to the tax receiver of Chatham county, made by the president of the association, the receiver assessed the corporation upon the shares not advanced on, estimating them, as they were returned, at $59,170. This was the only tax, so far as appears, that was imposed upon this corporation. There was no assessment either on the $94,977 secured by real estate, or upon the $28,853 otherwise secured. A fi. fa. issued for the taxes on this assessment, and the corporation tendered the tax on $28,853,--the amount of its loans not secured by real estate. The collector refused to accept this tender, and thereupon the corporation filed a bill to enjoin the collection of any more tax than it thus tendered. The motion for injunction was heard in term, and a demurrer to the bill, filed by the defendant, was overruled, and the injunction granted. The question now is whether this was a correct disposition of the case. This tax was assessed for the year 1886; and the statute which governs it is the sixth section of the act of December 22, 1884. See Acts 1884-85 pp. 24, 25. It reads as follows: "Be it further enacted," etc., "that the presidents of all building and loan associations, and other associations of like character, shall be required to return to the tax receiver of the county where such associations are located at its true market value, the stock of such associations owned by the stockholders thereof, upon which, as shown by the books of such associations, no advance has been made, or money borrowed thereon, by the individual stockholders therein, to be taxed as other moneyed capital in the hands of private individuals is taxed: provided, that no tax shall be required of real estate and building associations to be paid upon any portion of its capital which has been loaned or advanced to a shareholder upon real estate, upon which real-estate tax is payable by said shareholders." This enactment is perfectly clear if we exclude the proviso. It is manifest beyond all possible doubt that it contemplates the taxation of this class of stock at its market value, just as all the citizens of the state are taxed upon all property money, capital, and credits of every kind which they own; and it is obvious that, under the system of taxation prescribed by the...
To continue reading
Request your trial