45 Minn. 154 | Minn. | 1890
The defendant is a corporation of the peculiar character generally known by such names as “Mutual Building Associations,” or “Building and Loan Associations.” It was organized under the general laws of the state. On the 1st day of May, 1888, the association held and owned mortgages on real estate, “upon which the amount, due the defendant in the aggregate was the sum of $9,600,” as appears by the finding of the district court. These mortgages “represented payments for stock of the association made by shareholders, and nothing else.” The association had no other property than that represented by such mortgages, and its stock was not taxed otherwise than by the tax on these mortgages.- The assessor of the village where the association had its place of business, for the purposes of taxation, assessed these mortgages as the property of the, association, assigning to the property the value above stated. The association defends against such taxation. The district court, having sustained the tax, has certified the matter to this court, under the statute, for review.
Under our general tax law, the property of corporations, with some exceptions not necessary to be here referred to, as well as that of individual citizens, is subject to taxation. Their real and personal property is to be listed and assessed the same as other property, and the market or actual value of their stock, deducting indebtedness and the value of their real and personal property, is required to be listed for taxation. Gen. St. 1878, c. 11, § 22. In defining generally the property which is subject to taxation, (sections 1, 3, 4, Id.,) there is included “all claims and demands secured by deed or mortgage due or to become due.” By Laws 1885, c. 78, this addition was made to section 22 above referred to: “The monthly instalments deposited in building associations, and subject to withdrawal on demand, or on thirty or sixty days’ notice, as provided in the by-laws of such associations, are an indebtedness which may be deducted from the value of their stock, as provided in this section. Mortgages of said asT sociations which are represented in their stock, and assessed as stock, shall not be assessed as mortgages. They shall list their real estate and all personal property as provided in this section.” Even without regard to the principle that laws relied upon as affording exemption from taxation are to be strictly construed, it would be very apparent that this amendment was not intended to exempt the property of this particular class of corporations from taxation, even, if that could be done constitutionally. The unequivocal import of the language is quite to the contrary. “They shall list their real estate and all personal property as provided in this section.” It is equally apparent that it was not intended to exempt mortgages from taxation, except when the property represented by mortgages is taxed in another form — that is, in the stock of the corporation. The law to which
It is claimed that the first part of the amendment, providing for the deduction from the value of the stock, for the purposes of taxation, of the monthly instalments deposited and subject to withdrawal on demand, or on notice of 30 or 60 days, has the effect to render such mortgages untaxable. Statutes are not to be construed as specially exempting from taxation property of a class which is generally subject to taxation, at least unless that intention is very clearly expressed. We do not regard the statutory provision just referred to as being applicable to mortgages held by such associations, although such mortgages have been taken as security for loans of the funds of the association, constituting the accumulation from the monthly stock payments of its members. It is probably applicable to funds accumulated in that manner, and which are actually held on deposit by the association, and not loaned out so as to be brought within the category of mortgages, concerning which the statute makes special provision. So long as the funds remain on deposit in the hands of the association, members who are not borrowers may avail themselves of the right to withdraw their proper share of the same, under specified conditions and on notice of one month. Borrowing members, who have received in advance of payment, as a loan from the association, the fixed par value of their stock, who have become specially obligated to continue the stipulated monthly payments as a means by which the loan is to be repaid, and
The association was not prejudiced by the fact that taxes were assessed on its mortgages, and not on its stock. At least no prejudice is shown, nor is it apparent how there can have been- any. If the stock had been assessed so as to have included these mortgages, then the latter should not have been separately taxed. But such was not the case. These mortgages constituted the whole property of the corporation, and they were subject to taxation, either as included in the stock of the corporation, or as mortgages.
The determination of the district court is affirmed.