151 Ind. 132 | Ind. | 1898
The appellant Harn, sued the appellee Woodard, as treasurer of Monroe county, to enjoin the collection of taxes for thé year 1897, upon certain running stock in a building association, not borrowed upon by Harn as the holder thereof. The lower court sustained a demurrer to the complaint, sind that ruling presents the -only question for review.
One of the questions urged by appellant is, that stock of this character is assessable to the building
As was held in Deniston v. Terry, 141 Ind. 677, this exemption was not intended as a limit upon the right further to tax the holders of stock, or those to whom building associations were indebted. In fact, the theory of this section is not the taxation of stock, but is, as to the building association, the taxation of the balance on hand or remaining to the credit of the association. As intimated in the case just cited, any other construction of the exemption would render it unconstitutional, as in violation of article 10, section 1 of the constitution, which provides that the only property which may be exempted from taxation is that for municipal, educational, literary, scientific, religious, or charitable purposes. In the cases cited it was further held, with reference to stock fully paid up, that it was taxable, not as stock, but as a credit in favor of the stockholder, and it was said in that case that there was no reason to distinguish between’ nonborrowing stock partly paid up or fully paid up. The conclusion that the holdings of a nonborrowing
It is quite clear, we think, that one who deposits his money with an association subject to call at any time upon reasonable notice, and who may receive the interest upon or earnings of the money so de: posited, is a creditor to the extent of such deposit and interest or earnings, and, although his credit may be evidenced by a certificate of stock or other writing, he is nevertheless a creditor, and his holdings, whatever called or however evidenced, constitute a credit. Of this question it was said in Deniston v. Terry, supra, “whether the stockholder who has loaned his money to the association, and has received certificates of stock in evidence of such loan, has in fact paid in full for the stock, or has made only part payment thereon, he should, in either case, be taxed for the true cash value of his stock, and that value will, in general, be the amount paid by him on the stock. * * * But the stockholder who is simply a lender to, a creditor of, the association * * * holds his stock in evidence of such credit, just as he might hold the promissory note or other obligation of the association. Whether, in fact, he holds a certificate of stock or not, or whatever other evidence there may be of such credit, can make no difference. * He is an actual creditor. The law looks through names and sees the things which the names stand for. Such a credit, therefore, by whatever name it may be called, or
Section 8422, supra, applies to the assessment only of corporate property, and that “where some other provision is” not “made by law.” It would, therefore, not relate to assessments against individuals. Being a general provision, and section 8507 being a specific provision upon the same subject, the former, under the well known rules of statutory construction, would not control. The legislature certainly has the power, in classifying and providing methods of taxing property, to charge the same, if it consist of investments in corporations, either to the individual member or the corporation; and it not infrequently occurs that corporate property is assessed directly instead of against the stock. The property, or the investment which the member makes, supplies the essential characteristics of the property to be taxed, and not the stock. The investments of the nonborrowing member of a building association are as so much cash deposited for profit in the way of interest or participancy in earnings, and when that in
The suggestion of the learned counsel for the appellant that the case of State Beard of Taw Commissioners v. Holliday, 150 Ind. 216, should control this case in favor of appellant is certainly made upon a misapprehension of the- holding in that case. It was not ■decided in that .case that there should be a specific selection of each article, credit, or kind of property to indicate the legislative intention to tax it, or to warTant its assessment for taxation. A selection by general classification is sufficient, and we do not understand it to be claimed here that, if we are correct in holding the appellant’s right a credit, it is not within the legislative classification of property to be taxed.
The essence of the decision mentioned was in the holding that the legislature had not, directly or indirectly, supplied The methods or instrumentalities for estimating the value for assessing policies of life insurance, and it was not held that such policies were not included in the legislative classification of property for taxation. Nor is it claimed that the credit here in question possesses any peculiarity rendering its valuation or assessment difficult, or that there could be two or more methods of ascertaining the value thereof. Indeed, the legislature has recognized the value of such credits in no uncertain or ambiguous
Speaking of the case of Deniston v. Terry, supra, counsel for appellant say: “In that case the sole question was the right to táx paid-up stock, and we think the court decided that question properly.” This conclusion is in entire harmony with all that we have said in this case. The only possible difference between this case and that is in the proportion in which the credit has been created. We know of no reason for distinguishing between fully paid up and partly paid up credits of this class. A subscription of $1,000 upon which $500 has been paid, is as valuable as a $500 subscription fully paid. As to either, the sum can be drawn upon notice, and as to either, it's earnings depend, not upon the character of the credit, but upon the mutual obligations assumed by the parties. Nor do we observe any occasion for refinement of distinction upon the question as to whether members of a building association are stockholders or creditors. This, we think, may be said as to borrowing and nonborrowing members. The association is formed for the purpose of gathering the funds of those having and earning a surplus, and of lending them to those who want to borrow, with the privilege of making small payments. Those who lend and those who borrow are members, whether they are called stockholders or not, and whether they have certificates of stock or not. Their membership enables one set to lend their surplus to another, and the corporate entity, by its official instrumentalities, is the agency or source through which this