26 N.E.2d 501 | Ill. | 1940
The circuit court of Cook county dismissed for want of equity a complaint for an injunction against appellee to restrain the collection of 1938 taxes assessed on 30,500 shares of capital stock of Hart, Schaffner Marx, a New York corporation, held by appellants as trustees of the Max Hart Stock Trust, and 30,097 shares held by them as trustees of the Harry Hart Stock Trust. Inasmuch as the revenue is involved an appeal has been prosecuted directly to this court.
It is agreed that 97.7901% of all the tangible property of the corporation was located in Cook county and was assessed there for the year 1938. Appellants claim that because of that assessment, and the proviso in subdivision 4 of section 3 of the Revenue act of 1872, as then in force, (Ill. Rev. Stat. 1937, chap. 120, par. 3,) the shares of capital stock held by them were not assessable. Section 3 provides: "Personal property shall be valued as follows: First: All personal property, except as herein otherwise directed, shall be valued at its fair cash value. * * * Fourth: The capital stock of all companies and associations now or hereafter created under the laws of this State [with exceptions not pertinent here] shall be so valued * * * as to ascertain and determine, respectively, the fair cash value of such capital stock, including the franchise over and above the assessed value of the tangible property *464 of such company or association; * * * Provided, that in all cases where the tangible property or capital stock of any company or association is assessed under this act, the shares of capital stock of such company or association shall not be assessed or taxed in this State." Appellee claims the proviso is appositive to the preceding clause in subdivision 4 relating to domestic corporations, and does not apply to non-resident corporations. The issues necessitate a consideration of other sections of the Revenue act.
Section 1 of the act provides: "That the property named in this section shall be assessed and taxed except so much thereof as may be, in this act exempted: First: All real and personal property in this State. Second: All moneys, credits, bonds or stocks and other investments, the shares of stock of incorporated companies, and associations, and all other personal property, * * * used, held, owned, or controlled by persons residing in this State. * * * Fourth: The capital stock of companies and associations incorporated under the laws of this State," with exceptions not pertinent here.
Section 6 provides: "Personal property shall be listed in the manner following: First — Every person * * * shall list all his * * * bonds or stocks, shares of stock of joint stock or other companies (when the capital stock of such company is not assessed in this State) * * * and other personal property."
It is first to be noticed that section 3, except the proviso, relates to a different subject than sections 1 and 6. Sections 1 and 6, and the proviso to section 3, relate to the assessment of personal property. Section 3, except the proviso, relates not to assessment, but to valuation for assessment purposes. The proviso is not confined to property mentioned in section 3 and does not deal with the subject of valuation, but specifically refers to tangible property or capital stock "assessed under this act," which can mean nothing but the act as a whole, and nothing but property *465
"assessed," not the property merely valued for assessment Subdivisions 1 and 2 of section 1 are broad enough to include the assessment of tangible personal property of a non-resident corporation. Subdivision 4 of section 1 provides for assessing the capital stock of domestic corporations. Under these facts, there is no room to say the legislature intended the proviso to relate only to the preceding clause of subdivision 4. The intention to make the proviso applicable to the capital stock or tangible personal property of any corporation, domestic or non-resident, which is assessed under the act is so manifest as to need no further discussion. In such a case it will be given that effect. Henderson Loan and Real Estate Ass'n, v.People,
The next question is whether the proviso applies in a case where only the tangible personal property in this State of a non-resident corporation is assessed under the Revenue act. Appellee claims the proviso does not apply except where all the values represented by the shares of stock are assessed in this State in the hands of the corporation, and that, in this case, some of such values represent property outside of, and which has not been assessed in, this State. He cites Porter v.Rockford, Rock, Island and St. Louis Railroad Co.
While the capital stock of a domestic corporation is assessable under subdivision 4 of section 1, the capital stock of a non-resident corporation can not be assessed in this State. (Western Union Telegraph Co. v. Lieb,
There being no issue of fact in the case, the decree of the circuit court is reversed and the cause is remanded, with directions to grant the injunction as prayed.
Reversed and remanded, with directions.
WILSON, C.J., and MURPHY, J., dissenting. *468