Town of Pittsfield v. Town of Exeter

• Decision Date: 29 July 1898
• Parties: TOWN OF PITTSFIELD v. TOWN OF EXETER.
• Court: New Hampshire Supreme Court

41 A. 82

69 N.H. 336

TOWN OF PITTSFIELD

v. TOWN OF EXETER.

Supreme Court of New Hampshire. Merrimack.

July 29, 1898.

Action by the town of Pittsfield against the town of Exeter. Case discharged.

Assumpsit for money had and received. Facts agreed: John J. Bell, late of Exeter, died August 22, 1893, owning shares of the capital stock of certain insurance and railroad corporations in this state. George E. Kent, of Pittsfield, was appointed administrator of his estate September 13, 1893, and as such has held the stocks ever since, and received the dividends upon them. Bell's widow and children have resided in Exeter since his decease. The selectmen of Pittsfield in the years 1895 and 1896, and the selectmen of Exeter in the years 1894, 1895, and 1896. seasonably took an invoice of the railroad stock, and transmitted a statement thereof to the state treasurer, as required by the statute. The state treasurer, without a notice to, or a hearing of, Pittsfield, apportioned and paid to Exeter each year the portion of taxes pertaining to both the insurance and railroad stocks. Pittsfield demanded the same of the state treasurer in 1895 and 1896. and of Exeter before beginning this action.

Burnham, Brown & Warren, for plaintiff.

Eastman & Young, for defendant.

CHASE, J. Prior to the enactment of the Revised Statutes, railroad stock, like bunk stock and other dividend-paying stocks, excepting that of manufacturing corporations, was taxable to the owner in the town in which he resided. Laws 1833, c. 108, § 1, 2. If the owner had died, it was taxable to his widow, any of his children, his heirs, or any other person who would consent to be considered in possession thereof; and, if no one would so consent, it was taxable to his heirs generally. Laws 1830, p. 556, § 10. In 1840 provision was made by which selectmen could procure the appointment of administrators upon estates having personal property subject to taxation, if the persons interested in the estates refused or neglected to have administration taken out. Laws 1840, c. 550, § 2. When there is an administrator, he has the legal title to the personal property of the deceased. Ladd v. Wiggin, 35 N. H. 421, 430. By the Revised Statutes, stocks in all corporations in this state, except manufacturing and railroad corporations, if held by an administrator, were taxable to him in the town in which he resided, if in the state, and, if not, in the town in which the person beneficially interested in them resided. Rev. St c. 39, § 3; Id. c. 40, 5 12. A special annual tax of 1 per cent. was imposed upon the capital stock of railroad corporations expended within the state, to be assigned and distributed one-fourth to the towns in which the railroads were located, in proportion to the capital stock expended therein for buildings and the right of way; three-fourths of the portion received upon stock owned in the state to the towns in which it was owned on the 1st day of April, in proportion to the ownership; and the remainder to the state. Id. c. 39, §§ 4-6; Report of Commissioners on Revised Statutes, c. 39. This scheme of taxation, with modifications in certain particulars, has continued to the present time. Laws 1843, c. 34, §§ 2-4; Gen. St. c. 51, §§ 4-6; Id. c. 57; Gen. Laws, c. 62; Pub. St. c. 64. The provisions of the statutes, and the circumstances under which they were enacted, show that a town's right to taxes assessed upon property represented by railroad stock depends upon the same conditions as its right to assess taxes upon bank and other kinds of corporate stock. The change made in the statutes in 1843, like that made in 1864 in the statutes relating to the assessment of taxes upon deposits in savings banks (Petition of Union Five Cents Savings Bank [N. H.] 36 Atl. 17), mainly affected the method of taxation, and did not take from towns taxes to which they were entitled under the old system, nor distinguish their right to taxes assessed upon railroad stock from their right to taxes assessed upon bank and other stocks. "Owned," in the provision relating to the distribution of railroad taxes (Rev. St. c. 39, § 5, par. 2; Pub. St. c. 64, § 13, par. 2), was used in the same sense as the word "owner" in the provision which requires that stock in corporations shall be taxed to the owner in the town in which he resides, if in this state. Rev. St. c. 40, § 4; Pub. St. c. 56, § 7. A similar change was made in 1887 in the method of assessing taxes upon the property of fire insurance companies, and what has just been said applies equally to this change. It follows from these considerations that the recent decision in Kent v. Town of Exeter (N. H.) 44 Atl. 607, that bank stock held by an administrator is taxable to him in the town in which he resides, although the heirs...