People ex rel. County Collector of St. Clair County v. First Nat. Bank of Marissa

• Decision Date: 19 November 1965
• Docket Number: No. 39188,39188
• Citation: 33 Ill.2d 457,211 N.E.2d 713
• Parties: The PEOPLE ex rel. COUNTY COLLECTOR OF ST. CLAIR COUNTY, Appellee, v. FIRST NATIONAL BANK OF MARISSA, Appellant.
• Court: Illinois Supreme Court

Page 713

211 N.E.2d 713

33 Ill.2d 457

The PEOPLE ex rel. COUNTY COLLECTOR OF ST. CLAIR COUNTY, Appellee, v. FIRST NATIONAL BANK OF MARISSA, Appellant.

No. 39188.

Supreme Court of Illinois.

Nov. 19, 1965.

Dreman & Sterling, Belleville, for appellant.

John M. Karns, Jr., State's Atty., and Eugene H. Widman, Asst. State's Atty., Belleville, for appellee.

HOUSE, Justice.

This is an action by the collector of St. Clair County against the First National Bank of Marissa for collection of personal property taxes allegedly due for the years 1957, 1958, 1959 and 1960. The bank appeals from a judgment against it in the sum of $17,169.78 for taxes and interest. We have jurisdiction since the revenue is involved.

The bank filed a capital stock tax return for each year in question showing its capital, surplus, undivided profits and reserves; listing the names and addresses of its stockholders, together with the number of shares owned by each; and containing a balance sheet and a schedule showing its real estate at book value. Notice of the amount assessed against each shareholder was served on the bank with a work sheet attached to each return which indicates the method used to arrive at the assessed value per share. That value was fixed at $12.45, $5.39, $9.97 and $6.56 for the years 1957 to 1960, respectively.

The complaint alleges the levy and extension of taxes on 'personal property' for the years in question and the delinquency, and ends with a prayer for judgment. While it is not so specified, it is apparent from the exhibits that the only taxes sought to be collected are capital stock taxes. The bank denied the material allegations of the complaint and alleged as an affirmative defense that 'the assessment of and tax extended against said assessment is excessive, fraudulent, illegal, erroneous, and void' and states that it assumes the complaint to be directed to assessment of tax on its capital stock. The reply is a general denial of the affirmative defense. The initial question is whether, on this record, the collector can maintain this suit at all.

Section 76 of the Revenue Act (Ill.Rev.Stat.1961, chap. 120, par. 557), provides that bank stockholders shall be assessed and taxed upon the value of their shares at the situs of the bank. Section 77 (par. 558) sets forth two means of collecting taxes so assessed. An action may be maintained to sell the stock upon which taxes are delinquent and pay such taxes from the proceeds of sale, and, under certain conditions, an action may be maintained against bank officers. Section 77 provides, in part '* * * it shall be the duty of every such bank, or the managing officer or officers thereof, to retain so much of any dividend or...