53 Wis. 436 | Wis. | 1881
The act of congress under which the First National Bank of Fond du Lae was organized, permits state taxation of the shares of stock in national banks, with the restriction that the same shall not be taxed “ at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of such state.” . E. S. U. S., sec. 5219. A statute of this state (E. S., sec. 1038) exempts from taxation “ so much of the debts due or to become due to any person as shall equal the amount of bona fide and unconditional debts by him owing.” Subd. 10. The supreme court of the United States held, in People v. Weaver, 100 U. S., 539, that a statute of New York, which the court of appeals of that state had interpreted as prohibiting the deduction of debts owing by any person from the value of national bank shares owned by him, for the purposes of assessment and taxation, was, because of another statute of that state, in contravention of the above limitation of .the power of the state to tax such shares, and therefore void. The statute referred to is similar to our section 1038, above mentioned, except that the deduc
The case last cited was in the circuit court of the United States, and arose in Indiana. It appears from the opinion of Mr. Justice Harlan that the statute of that state imposed taxes only upon the balance of the credits of an individual, after deducting from the value of such credits the amount of his tona fide indebtedness; while in the valuation of shares of bank stock no deduction was allowed for the shareholder’s indebtedness. The latter provision was held void, because it discriminated against the shareholder in violation of the law of congress. The decisions of the supreme court of the United States on this subject are authority, and the state courts are not at liberty to disregard them. It inevitably results from these adjudications, that, so long as our statute exempts, for the purposes of valuation, assessment and taxation, from the credits of an individual an amount equal to his bona-fide and unconditional indebtedness, the same exemption must be made from the ascertained value of national bank stock, if the owner thereof owes bona fide and unconditional debts.
Unlike the statutes of New York and Indiana, our statute does not expressly prohibit such exemption in favor of the indebted shareholder in a bank. It merely provides that bank stock shall be assessed and taxed, and where (R. S., sec. 1042); it imposes the duty upon the bank officers to give the assessors certain information (section 1051); and it authorizes the assessors to value the stock according to their best judgment (section 1057). There is no provision in our statute which is
It follows from the views above expressed, that the amount of plaintiff’s indebtedness should have been deducted from the value of his stock, in assessing the same for taxation. Hence, on the merits of the case, we think the demurrer to the complaint was properly overruled. Several objections to the com
1. He argues that several causes of action are improperly united in the complaint. The first count states facts which entitle the plaintiff to recover the excess of taxes therein mentioned paid by him. The second count states the same facts with more particularity of detail, and also additional facts which, it is claimed, invalidate the whole tax. The prayer is for a money judgment for the amount of the whole tax and interest. The argument is, that the second count states an equitable cause of action, and that, if true, it must result in a reassessment of taxes, under R. S., sec. 12105, as amended by Laws of 1819, ch. 255, sec. 5. We are satisfied that no such result would follow, even though the court should find irregularities in the assessment of the tax going to the groundwork thereof and affecting all the property in the ward or city. The amended section relates only to actions brought to avoid or set aside taxes or tax proceedings, which are purely equitable actions, and not to actions brought to recover the amount of taxes illegally collected, which are purely actions at law. The second count states only a legal cause of action, which includes the cause of action stated in the first count. Indeed, the first count might be stricken out without detriment to the plaintiff. No good reason is perceived why the two counts may not be joined in the same action.
2. It is also maintained that the complaint shows on its face that the money sought to be recovered was paid voluntarily, and hence cannot be recovered. We think otherwise. The complaint in both counts shows a compulsory payment, within the rule of Parchar v. Marathon Co., 52 Wis., 388, and the cases there cited.
3. It is further claimed that the complaint is defective in that it fails to allege that the plaintiff presented to the common council of the defendant city, before this action was
4. There is no averment in the complaint that the plaintiff’s indebtedness therein stated has not been once allowed to him, in the valuation of other credits, for assessment and taxation. We think there is no presumption that any such allowance has been made. If he has already had the benefit of an exemption from taxation, on account of such indebtedness, by having the amount thereof deducted from the valuation of other credits, that is matter of defense. He need not negative the fact in his complaint.
This disposes of all objections to the complaint which it is deemed necessary to notice. Our conclusion is, that there is no misjoinder of causes of action in the complaint; that each count states a cause of action; and hence that the demurrer was properly overruled.
By the Court.— Order affirmed.