State v. Buder

• Decision Date: 13 April 1925
• Docket Number: No. 25730.,25730.
• Citation: 271 S.W. 770
• Parties: STATE ex rel. COMPTON et al. v. BUDER, City Assessor, et al.
• Court: Missouri Supreme Court

271 S.W. 770

STATE ex rel. COMPTON et al. v. BUDER, City Assessor, et al.

No. 25730.

Supreme Court of Missouri, in Banc.

April 13, 1925.

Certiorari by the State, at the relation of William R. Compton and another, against William Buder, as Assessor of the City of St. Louis, and as President of the Board of Equalization of the City of St. Louis, and others, for an order quashing record of Board of Equalization of City of St. Louis. Record quashed.

Bryan, Williams & Cave, of St. Louis, for relators.

Oliver Senti and Daniel Bartlett, both of St. Louis, for respondents.

Jesse W. Barrett, Atty. Gen., and J. Henry Caruthers, Asst. Atty. Gen., amicus curiæ.

DAVID E. BLAIR, J. Certiorari.

The St. Louis Joint-Stock Land Bank, a corporation organized under the Federal Farm Loan Act (U. S. Comp. St. §§ 9835a-9835z) and herein referred to as "land bank," and William R. Compton, owner of shares of stock of said land bank, seek our order quashing the record of the board of equalization of the city of St. Louis, herein referred to as "board."

In response to our writ theretofore issued a return was filed incorporating a stipulated record of the proceedings before the board. Relators filed their motion for judgment upon the pleadings, thereby admitting all facts well pleaded in said return. The Attorney General has filed a brief as amicus curiæ.

As appears in the stipulated record, the board made an order on April 12, 1924, directing "that an assessment be made against the shares of stock of said St. Louis Joint-Stock Land Bank for taxes for the year 1924 on the basis of a total assessment in the sum of $603,292.87." The board was dissolved on April 12, 1924, and prior to the issuance of our writ. The records and minutes of the board are in the custody and control of respondent William Buder, herein referred to as "assessor."

The sole question in the case is the power and authority of the board to assess against said land bank, for taxation for state, city, and school purposes, the value of the shares of stock owned by the shareholders of said land bank. It is conceded that the land bank is a federal agency and that its shares of stock are not subject to taxation by the state or its agencies, except to the extent and in the manner authorized by Congress.

In the view we take of the case, it is unnecessary to enter into an extended consideration of the various provisions of the federal Farm Loan Act which give rise to the authority of the state to take advantage of the federal government's permission to tax the shares of said land bank. We will assume that such authority exists. Relators concede this, but contend that the state of Missouri has not enacted any law to take advantage of such permission. Respondent assessor contends that section 12775, R. S. 1919, which was enacted long before the federal Farm Loan Act was passed, Is broad enough in its scope and meaning to serve as such authority.

Much space is taken in the briefs and numerous decided cases, and text-writers are cited upon the question of whether or not the land bank is doing a banking business. It will be unnecessary to consider such authorities at length, because we think the issue here involved can be settled by a consideration and understanding of our statute.

It is conceded by respondent assessor that the only section of our statute authorizing the state or any agency thereof to tax the shares of the land bank is found in section 12775, R. S. 1919. If that section be deemed not to cover the situation, the record of the board should be quashed, and other contentions in the case need not be noticed.

The portion of said section which is counted upon as authority for the assessment made by the board reads as follows:

"Persons owning shares of stock in banks, or in joint stock institutions or associations doing a banking business, shall not be required to deliver to the assessor a list thereof, but the president or other chief officer of such corporation, institution or association shall, under oath, deliver to the assessor a list of all shares of stock held therein, and the face value thereof, the value of all real estate, if any, represented by such shares of stock, together with all reserved funds, undivided profits, premiums or earnings and all other values belonging to such corporation, company, institution or association: and such shares, reserved funds, undivided profits, premiums or earnings and all other values so listed to the assessor shall be valued and assessed as other property at their true value in money, less the value of real estate, if any, represented by such shares of stock." (Italics ours.)

It is provided by section 12777 that the taxes assessed against such shares of stock shall be paid by the corporation, and that such corporation may recover from the owners of such shares the amount so paid or may deduct such payments from dividends accruing thereon.

It is stipulated as a fact "that the business of the St. Louis Joint-Stock Land Bank has been confined to making loans on improved farm lands in the states of Missouri and Arkansas for a term; that the St. Louis Joint Stock Land Bank at no time accepted or received any deposits from the United States government, or from its stockholders, or any other persons, and had at no time maintained any facilities for the receiving of deposits from any one, or the cashing of checks drawn on any such deposit."

Citation of authority is entirely unnecessary in support of the well-recognized rule that taxing statutes must be strictly construed. Our section 12775 does not authorize the assessment of taxes upon the shares owned by shareholders of a bank or other institution which is merely authorized, by its charter or the law providing for its incorporation, to do a "banking business." It authorizes the assessment of such taxes only in the event the particular institution or corporation is a "bank," as generally understood, or is "doing a banking busines." True, the words "doing a banking business" in the order in which they appear apparently modify only the words "joint-stock institutions or associations"; but the connection in which such modifying words are used clearly denotes that they relate back to the word "bank" as well, and indicate the sense in which the word "bank" is used. That word is used in the sense of an institution which is doing a banking business, as generally understood or as defined by statute. The words "bank" and institutions "doing a banking business" are identical in meaning as used in section 12775.

We have found, only two sections of our statutes which attempt to define what is meant by "banking business," and they are not found in the chapter on taxation. Section 11781...