Roberts v. American Nat. Bank of Pensacola
Decision Date | 01 April 1929 |
Parties | ROBERTS, County Tax Collector v. AMERICAN NAT. BANK OF PENSACOLA. |
Court | Florida Supreme Court |
Suit by the American National Bank of Pensacola against J. S Roberts, as Tax Collector of the County of Escambia. Decree for complainant, and defendant appeals.
Affirmed.
(Syllabus by the Court.)
Appeal from Circuit Court, Escambia County; A. G Campbell, judge.
Fred H Davis, Atty. Gen., and H. E. Carter, Asst. Atty. Gen., for appellant.
Watson & Pasco & Brown, of Pensacola, for appellee.
This appeal is from a final decree adjudging 'to be invalid and void' an assessment of state and county taxes for the year 1925 on the shares in a national bank, and perpetually enjoining the collection of the tax as assessed; an order overruling a demurrer to the bill of complaint and granting a temporary injunction having been affirmed on appeal. Roberts, as Tax Collector, v. American National Bank of Pensacola, 94 Fla. 427, 115 So. 261.
The shares in a national banking association cannot be taxed under state authority except as Congress consents, and then only in conformity with the restrictions attached to such consent given. Des Moines National Bank v. Fairweather, 263 U.S. 103, 106, 44 S.Ct. 23, 68 L.Ed. 191; First National Bank of Guthrie Center v. Anderson, 269 U.S. 341, 347, 46 S.Ct. 135, 70 L.Ed. 295.
The United States Code Annotated contains the following:
'2. The shares or the net income as above provided of any national banking association owned by nonresidents of any State, or the dividends on such shares owned by such nonresidents, shall be taxed in the taxing district where the association is located and not elsewhere; and such association shall make return of such income and pay the tax thereon as agent of such nonresident shareholders.
'3. Nothing herein shall be construed to exempt the real property of associations from taxation in any State or in any subdivision thereof, to the same extent, according to its value, as other real property is taxed.
This section was not intended to control the power of the state on the subject of taxation, or to prohibit the exemption of particular kinds of property, but to protect the capital invested in national bank shares from unfriendly discrimination by the states in the exercise of the taxing power. Adams v. Nashville (Tenn. 1877) 95 U.S. 19, 20, 24 L.Ed. 369; Mercantile Nat. Bank v. City of New York (C. C. N.Y. 1886) 28 F. 776, affirmed (1887) 121 U.S. 138, 7 S.Ct. 826, 30 L.Ed. 895.
It was intended by this section to comprehensively control the subject with which it dealt, and thus to furnish the exclusive rule governing state taxation as to the federal agencies created as provided in the section. Bank of California, National Ass'n, v. Richardson (1919) 248 U.S. 476, 39 S.Ct. 165, 63 L.Ed. 372, reversing (1917) 175 Cal. 813, 165 P. 152.
The federal statute forbids states to tax national bank shares 'at a greater rate than is assessed upon other moneyed capital * * * of individual citizens,' and 'was intended to prevent discrimination against moneyed capital of citizens invested in shares of national banks; and it is immaterial that state bank shares are taxed equally with shares of national banks.' Minnehaha Nat. Bank v. Anderson (D. C.) 2 F. (2d) 898; Eddy v. First National Bank of Fargo (C. C. A.) 275 F. 550.
The foregoing act of Congress prescribes the full measure of the power of the state to impose taxes upon national banking associations or their shareholders. Any assessment not in conformity therewith is unauthorized and invalid. First Nat. Bank of Gulfport v. Adams, 258 U.S. 362, 42 S.Ct. 323, 66 L.Ed. 661; People ex rel. Hanover Nat. Bank of City of New York v. Goldfogle et al., 234 N.Y. 345, 137 N.E. 612; First Nat. Bank of Guthrie Center v. Anderson, 269 U.S. 341, 46 S.Ct. 135, 70 L.Ed. 295; Minnehaha Nat. Bank v. Anderson (D. C.) 2 F. (2d) 897.
The purpose of the restriction contained in the act of Congress consenting to state taxation of the shares in national banking associations, is to render it impossible for any state, in taxing the shares, 'to create and foster an unequal and unfriendly competition with national banks, by favoring shareholders in state banks or individuals interested in private banking or engaged in operations and investments normally common to the business of banking. Mercantile National Bank v. New York, 121 U.S. 138, 155, 7 S.Ct. 826, 30 L.Ed. 895; Des Moines National Bank v. Fairweather, supra [263 U. S.] 116 (44 S.Ct. 23 ).
'The term 'other moneyed capital' in the restriction is not intended to include all moneyed capital not invested in national bank shares, but only that which is employed in such ways as to bring it into substantial competition with the business of national banks. Mercantile National Bank v. New York, supra [121 U. S.] 157 (7 S.Ct. 826 ); Aberdeen Bank v. Chehalis County, 166 U.S. 440, 461 (17 S.Ct. 629, 41 L.Ed. 1069).
Roberts v. American Nat. Bank, supra, 94 Fla. 427, 115 So. 261.
The state Constitution requires the Legislature to provide for a uniform and equal rate of taxation, and permits the Legislature to provide for special rates on intangible property, which special rates have not as yet been provided for. The Constitution also requires the Legislature to prescribe regulations to secure a just valuation of all property, both real and personal, with exceptions not material here. Section 1, art. 9, as amended at the general election 1924, vol. 5, p. 4401, Compiled General Laws 1927.
The taxation statutes of the state define 'real property,' and also define 'personal property,' or 'personal estate,' as including 'all public stocks or shares in all incorporated or unincorporated companies,' and provide that the shares of national banks shall be assessed as personal property, 'but not at a greater rate than is assessed on other moneyed capital in the hands of individuals.' Sections 895, 896, 907, Comp. Gen. Laws 1927. The rate of taxation in 1925 and subsequent years was the same on all property that is assessed. Chapter 11333, Acts 1925; chapter 12415, Acts 1927.
A national bank may, on behalf of its stockholders, maintain a suit to enjoin the collection of a...
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