168 S.W.2d 371 | Ky. Ct. App. | 1942
Affirming.
The appeal is from a judgment fixing the valuation of shares of stock of the Farmers National Bank of Somerset for taxation by that city. KRS
It is prescribed by Section 172 of the Constitution that all taxable property shall be assessed "at its fair cash value, estimated at the price it would bring at a fair voluntary sale." That criterion, of course, runs throughout the several applicable statutes. Intangible property, such as shares of stock in a corporation, is taxable only for state purposes, except "the shares of banks, trust companies, or combined banks and trust companies doing business in Kentucky" and of domestic insurance companies. Stock of that kind is subject to local taxation. The banks are required to make certain reports to the Kentucky Tax Commission and to local assessors, who are directed to assess the stock for their respective taxing districts. Section 4019a-10, Ky. Statutes; KRS
The agreed statement of facts contains an itemized list of resources and liabilities of the appellee bank in the usual form of bank statements as of April 1, 1941, the assessing date of property for cities of the fourth class, of which Somerset is one. KRS
"The fair cash value of the shares of stock is the matter to be determined on all the facts. The price at which a share or so now and then was sold at private sale is not conclusive."
This rule of estimation is adhered to in Dumesnil v. Reeves,
We have proof in this case, by way of stipulation, of a number of specific sales of shares of stock in this bank in 1941 for $75 to $100, during which period the aggregate net book value was around $9,000 more than it was on April 1st. During eight years prior to that date, the stock sold as low as $65 at public sale and never for more than $100 a share. In November, 1941, an administrator of a decedent's estate sold at public auction, after due advertisement, 61 shares on a credit of six months, offering same in one to five share lots. It was sold from $97 to $100 a share. At that time the aggregate net book value was $10,000 more than on April 1st.
Notwithstanding the book values of the stock, the *160
assessing officers and we are bound by the constitutional measure of valuation, namely, "the fair cash value, estimated at the price it would bring at a fair voluntary sale." The evidence of voluntary sales of such number and diversity as was presented establishes with reasonable certainty that the value of this stock did not exceed $100 a share, or the aggregate of $100,000. See Bingham's Adm'r v. Commonwealth,
The judgment is affirmed.