40 Ind. App. 598 | Ind. Ct. App. | 1907
Appellant’s testator, an inhabitant of Indiana, was the owner of certain shares of the capital stock of the Youngstown Rolling-Mill Company, a foreign corporation, all of whose property was assessed for taxation to the corporation in the state where the company was organized and carried on its business, and the sole question presented by the record in this case is whether the shares of stock so owned by appellant’s testator are subject to taxation in this State. The solution of this question depends upon the proper construction to be given to the statute, in force at the time the taxes are claimed to have accrued, governing the assessment of property for taxation. Section 8410 Burns 1901, Acts 1891, p. 199, §3, provides that ‘ ‘ all property within the jurisdiction of this State, not expressly exempted, shall be subject to taxation.” Section 8411 Burns 1901, Acts 1895,' p. 21, §1, provides: “For the purpose of taxation, * * * personal property shall include * * * all goods chattels and effects belonging to inhabitants of this State situate without this State, except the property actually and permanently invested in business in another state shall not be included; * * * all shares in corporations organized under the laws of this State when the property of such corporation is not exempt or is not taxable to the corporation itself; * * * all shares in foreign corporations except national banks, owned by inhabitants of this State. * * * Shares in corporations, all the property of which is taxable to.the corporation itself shall not be assessed to the shareholders.” Section 8422 Burns 1901, Acts 1891, p. 199, §12, provides that “all cor
We recognize the rule of construction invoked by appellant, but do not conceive that it should be accorded controlling influence in the construction of the statute under consideration. The evident purpose of §8411, supra, is not the exemption of property from taxation. Its purpose is to define what property is included in the term “personal property, ’ ’ as used in the taxing law. Its language does not expressly exempt any property from taxation; neither that of corporations, foreign or domestic, or of natural persons. It does not declare that stock in a domestic corporation shall be exempt from taxation; it does not declare that shares of stock in a foreign corporation shall, under any circumstances, be exempt from taxation. It simply declares that shares in corporations, all the property of which is taxable to the corporation itself, shall not be assessed to the shareholder; and construing this section with §8422, supra, pro
The provision of §8411, supra, referred to and relied upon by appellant as exempting from taxation the shares of stock involved in this ease, to the effect that, where all the property belonging to the corporation was assessed to the corporation, the shares of stock shall not be assessed to the holder, was evidently intended to apply to those corporations which could be assessed under the law the legislature was then engaged in enacting. It is simply a complement of the previous provision found in the same section, to the effect that the term “personal property” should include all shares in corporations organized under the laws of this State, when the property of .such corporation is not exempt, or is not taxable to the corporation itself. Numerous authorities are cited to establish the proposition that taxation of the shares in the capital stock of a corporation, and taxation of the property of the corporation, is double taxation, and that double taxation is not to be presumed, and that the tax laws are not to be construed so as to impose double taxation, unless the legislature has unmistakably so enacted. We recognize the correctness of appellant’s position upon this question, and the force of the authorities cited; but, conceding it to be the law, we still conclude that these provisions of the law to which we have referred show an unmistakable legislative purpose to assess shares of stock in nonresident corporations for taxation, although it may result in double taxation. Numerous authorities are cited from the various states, particularly New York, New Hampshire and Vermont, to sustain appellant’s contention that under our statute this stock is exempt from taxation here. All of these 'decisions were based upon statutes entirely different in effect and manifest purpose from the law in this State, and we cannot regard them as in point.
Judgment affirmed.