240 N.W. 468 | Minn. | 1932
The facts are not in dispute. The Minneapolis-St. Paul Stock Exchange is a voluntary unincorporated association of individuals doing business in rented quarters in Minneapolis. The membership May 1, 1929, when this levy was made, consisted of 55 persons, each of whom paid $1,000 to the association when becoming a member. On May 1, 1929, the association owned the following property and none other, viz. $7,884 in bank subject to check, $50,000 represented by cashier's checks and similar instruments, and office furniture of the full value of $425. This property was duly listed for taxation, and the assessor assessed $57,884 thereof as money and credits and a tax of $173.65 was levied thereon; and the office furniture at 40 per cent of the full value, and a tax of $12.77 was levied thereon, and both sums were paid. Defendant held a membership in the association on May 1, 1929, for which he paid $1,000, and the assessor assessed the same as personal property on the basis of 40 per cent of the value of $1,000, and levied the tax of $30.04 held void by this judgment.
There can be no doubt, since the decision of State v. McPhail,
It is contended that when there appears to be more than one way or mode to proceed in taxing property the state may select the one producing the greatest revenue. This may be conceded, provided there be no duplication of taxes nor unfair discrimination. To assess memberships at 40 per cent of the full amount paid for them and levy the tax thereon at the rate of personal property generally results in unfair discrimination against unincorporated associations and their members. The status and property rights as between such associations and its members are essentially like those of corporations and its stockholders — the certificate of membership conferring the game right to the property of, or interest in, the association as a stock certificate does in a corporation. As to domestic corporations, when the tax is ascertained and paid precisely in the manner here done as to this association, the statute does not provide for the taxation of the stockholders upon their stock. The stockholder therein is free from any tax as a stockholder. State v. Nelson,
"Members should not be required to pay taxes on the value of their memberships represented by the tangible property of the chamber [association] already assessed. Upon the excess value they should pay."
The judgment is affirmed.