119 Iowa 696 | Iowa | 1903
The proper officer of plaintiff having made a return to the assessor showing that the total amount of capital stock, surplus, and undivided earnings of plaintiff bank, after deducting therefrom the amount of real estate owned by said bank, was $139,724.10, the local board of review of assessments notified the plaintiff bank of a change of valuation from that fixed by the assessor, based on such statement, and, after due notice to the stockholders of an opportunity for hearing, fixed the value ■of its stock for taxation purposes, after deducting that part of the capital stock assessed as real estate, at $160 per share, corresponding to a total valuation of $240,000. There is no question but that this increased valuation was -substantially on account of the ownership by the bank of $102,900 of United States government bonds, which were -not included, in the return made by the bank officer. On •appeal by the bank from this action of the board of review, ■the trial court reduced the assessment to $150 per share, ■corresponding to the gross sum of $225,000, and then •deducted therefrom the amount of the government bonds; leaving, as the net actual value of the total stock of plaintiff bank for the purpose of taxation, $122,100. It was further made to appear to the trial court that the bank had paid under protest the total amount of its taxes for the year 1900 on the basis of the valuation fixed by the board of review; and the court ordered an adjustment by the county auditor on the basis of the new valuation, and
We do not think it necessary to reexamine the grounds; on which our decision in the former case was based. The-distinction there pointed out betwmen the taxation of the-property of the bank and the value of the shares of stock of the bank has been so fully recognized by the Supreme-Court of the United States in decisions cited in the former opinion that further discussion would be useless. It is-conclusively settled that the state may provide for taxation of the shares of stock in a national bank on the basis of their value as determined by the entire assets of the bank, including United States bonds which it may own, and this is the method of taxation authorized ' by our statute on the subject. Code, section 1822. These shares of stock are assessed to the individual stockholders at the place where the bank is locate:!, the officers of the bank being required to furnish the assessor with a list of the stockholders, and the number of shares owne.d by each; and
Our conclusion briefly is, first, that in estimating the ' value of shares of stock in national, state, or savings banks, the value of United States bonds owned by the the banks may be taken' into account; second, that the taxation of national banks by valuation of the shares of stock owned therein (such shares being assessed to the stockholders at the place where the bank is located) is substantially the same as that authorized with reference to state and savings banks, which are directly taxed by valuation of the aggregate shares thereof (United States bonds being included in determining the valuation of the aggregate shares); third, that the taxation of private banks and bankers on the aggregate value of the property invested in the business, while incorporated banks, including national banks, are taxed by means of an assessment of the value of the corporate shares, does not constitute a discrimination as against national banks, although in the one case United States bonds are treated as exempt and deducted from the aggregate value of bonds and stocks, while in the other case the value of the corporate shares is determined by including the value of United States bonds.
The judgment of the lower court is therefore reversed, and the case remanded for the entry of a judgment in accordance with the views expressed in this opinion.— Reversed. \