UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY TAX EXEMPT AND TAXABLE INVESTMENT SECURITIES A Summary of the Laws of All the States and the District of Columbia Relating to the Tax- ation of Securities from the Standpoint of the Banker and Investor. By SYDNEY R. WRIGHTINGTON nr and WELD A. ROLLINS Of the Boston Bar I Published by THE FINANCIAL PUBLISHING COMPANY Boston, U. S. A. COPYRIGHT, 1913, BY SYDNEY R. WRIGHTINGTON AND WELD A. ROLLINS, BOSTON, MASS. r J. B. LYON COMPANY BOOK MANUFACTURERS, ALBANY, N. Y. TAXATION OF INVESTMENTS. PREFACE. This book is intended as a manual for the use of investors and dealers in investment securities. It treats of the laws of the various states of the Union levying a direct property tax on investments. It does not include inheritance taxes 1 or stock trans- fer taxes. These are not properly described as in- cluded in the direct property tax. The taxes re- ferred to are levied by states, counties, cities, towns, or specially created municipal districts within states, on property in the hands of its owner assessed at a given rate in proportion to the value of the property or upon incomes. These are the great fundamental annual taxes which form the backbone of our public revenue. This book is not intended as a legal treatise and does not contain a discussion of the constitutional limitations on the taxing power or questions relating to the interpretation of tax statutes. The citations of the statutes are given for the convenience of those who may wish to make a more detailed study of a particular statute in a given state. The occasional citations of decisions do not purport to be exhaust- 1. Inheritance taxes by the several states have been fully treated in Blakemore and Bancroft, Inheritance Taxes, Boston Book Co., Boston, 1912. There seems, therefore, no need of discussing this subject here. 4 INVESTMENT SECURITIES ive. The work includes all statutes in force, on January 1, 1913, except the Session Laws of Vermont for 1912 which were not available. The decisions have been examined up to December 1, 1912, in all states, The arrangement adopted, it is hoped, will be more convenient for investors than a more elaborate statement. It necessitates, however,, abbreviations and the use of terms throughout the scheme of class- ification in a somewhat arbitrary sense. To avoid prolix repetition, these terms are used in a uniform sense throughout the book except where expressly qualified. It is necessary, therefore, to give at the outset a series of definitions of terms which may not be technically accurate, but which, it is hoped, will prove convenient. It seems wise that these should be made decidedly elementary. Investments have been roughly classified as stocks, bonds, notes, and deposits. There are frequently securities which partake so much of the nature of more than one of the above groups or, in other words, are so close to the dividing line between them, that there may well be a difference of opinion as to the class within which they should fall. In general, however, stocks represent proprietary interests in some association incorporated or unincorporated, and bonds, notes, and deposits are obligations or contracts. Stocks have been divided into several groups because some of the states have made such an arbitrary division for taxation purposes. It has seemed wise to adopt the most familiar of these classifications. Many states make no such distinc- EXEMPT AND TAXABLE 5 tions, and the same rule applies to more than one of the kinds of stock distinguished in our classification. So far as possible, needless repetition has been avoided in such cases by grouping titles together in brackets, but to avoid confusion the same scheme of classification has been maintained. STOCKS. Corporations which issue certificates representing the shares in their capital stock owned by individu- als are in theory artificial persons created by some sovereign power, such as the United States or a state of the Union. A corporation organized under the laws of one jurisdiction may transact business and hold property in another, and its shares may be owned by a citizen of a third. The technical terms for distinguishing between a corporation which re- ceives its charter from the state levying the tax and a corporation which receives its charter from some other state are the words " domestic " and " for- eign." So far as possible these words have been avoided, and the name of the state granting the charter to the corporation has been prefixed. For example, " Massachusetts Corporations " means corporations receiving their charter from that state and does not include corporations chartered by other states but doing all or part of their business in Massachusetts. 6 INVESTMENT SECURITIES (1) The first group, " Bank Stocks," includes the following : (a) A national bank is incorporated under the laws of the United States of America, but located and doing business in some one of the states. The tax referred to in this subdivision is a tax on the stock of a national bank doing business in the state imposing the tax. The right of the states to tax stock in national banks has been limited and defined by numerous decisions of the United States Supreme Court. States can tax stockholders but cannot tax the banks. Most state statutes try to get around this and collect the tax through the bank because that is practically the only way they can get it. Many of these statutes in their present form are of doubtful constitutionality. Shares in national banks under federal statute can be taxed only in the state where the bank is located. Hence this sec- tion includes only national banks located in the state in question. It is to be remembered in this connec- tion that the same statute that prevents a state from taxing its own citizens on shares owned in national banks located in other states permits each state to tax nonresidents on shares owned in national banks located in the taxing state. (U. S. Rev. St., Sec. 5219 ; Tappan v. Merchant's National Bank, 19 Wall. 490.) (b) The second group consists chiefly of state banks of discount. In many states there are no institutions incorporated under the laws of the state which are technically called banks. In those states EXEMPT AND TAXABLE 7 there are usually, however, trust companies, which perform the functions of banks and are usually treated similarly for purposes of taxation. They are included in this section except where expressly distinguished. In some states savings banks have a share capital and issue certificates of stock. In such states these shares will be included in this group. (c) The third group relates to the taxation of shares held by a citizen of one state in the capital stock of a bank organized under the laws of some other state or country. (d) The shares in co-operative banks, or building and loan associations, as they are more generally called, perhaps should not technically be included in the classification of stocks since they more nearly resemble deposits in banks. It seemed more likely, however, that they would be looked for under the heading of bank stocks and they have been so classi- fied. They are usually taxed by a special statute. Such shares are usually owned in the state incor- porating the association and therefore the sum- maries deal only with shares in domestic building and loan associations except where the contrary is expressly stated. (2) Public service corporations may be roughly defined as those which are held to be under greater obligations to the public than ordinary business cor- porations, either because of the semi-monopolistic character of their business or because of privileges 8 INVESTMENT SECURITIES conferred by the state. 2 This group includes railroad, street railway, telephone and telegraph, and other similar corporations. The technical legal limita- tions of the term " public service corporations ' : cannot be accurately denned and may vary at dif- ferent periods of time. The securities of certain kinds of corporations, however, which are usually included in the definition of " public service cor- porations, ' ' are generally taxed by statutes different from those which tax the securities of other corpora- tions even when the tax itself is the same. Without attempting legal accuracy, therefore, we have arbi- trarily included in this book (except where other- wise expressly stated) in the term " public service corporations " all companies engaged in the follow- ing businesses: Eailroad, steam or electric, street railway, telephone, telegraph, gas, electric light. When companies engaged in other lines of pub- lic service in a given state are treated as public service corporations for the purpose of taxation, they are specifically enumerated in the summaries if that state makes any distinction between the method of taxing public service stocks and the method of taxing other kinds of stock. When there is no difference between the method of taxing pub- lic service stocks and that of taxing other stocks, it is not important to state here what kinds of service that state includes in the former class. 2. For a more accurate definition see Wyman on Public Service Corporations, Baker, Voorhis & Co., New York, 1911. EXEMPT AND TAXABLE 9 (3) Insurance corporation stock, of course, does not include shares in mutual insurance companies. (4 and 5) Manufacturing and other business cor- poration stocks are now exempt in many cases when the corporation is " located in " or " does business in ' ' the state levying the tax, even when not incor- porated by that state. What is meant by these terms has seldom been clearly defined in statute or decision, so that the summaries on these points must often be vague and unsatifactory. It should be un- derstood however that in the states where the shares in the hands of the stockholders are exempt the corporation itself is taxed instead. This is usually assessed by local assessors at the head office of the company. (6) Unincorporated associations include all groupa of persons not having a charter of incorporation from the state but doing business for profit, whose ownership is evidenced by certificates of stock. These are common in Massachusetts under the names of voluntary associations and real estate trusts. Although closely resembling corporations in their organization, they have received no charter from the state. In many states a form of business organization is authorized and regulated by law which, while not technically a corporation, closely resembles it. These are frequently called joint- stock associations, as in New York, and under these laws many important associations, such as the great express companies, have been organized and have issued a large volume of securities. The exact legal 10 INVESTMENT SECURITIES status of this form of organization, that is, whether it partakes more of the nature of corporation or of the nature of partnership, is not entirely clear even in the jurisdiction authorizing such organizations. In states other than that in which the association is organized, the courts sometimes treat them as part- nerships, when at home they are treated as cor- porations. The statutes sometimes specifically declare the shares of associations or joint-stock companies to be taxable like certificates of stock. In such cases we have made note of this. Ordinarily, however, they are not expressly mentioned. Except the New York joint-stock companies, they are not common outside of Massachusetts, though the federal corporation tax makes the extension of these associations a prob- able development. It must be understood, therefore, that our statements as to the taxation of these shares are usually only estimates of probabilities and can- not be fully supported by statute or decision. BONDS AND NOTES. Bonds and notes closely resemble each other. The distinction in the minds of investors between them is that a bond is a long term obligation while a note is a short term obligation, but this distinction is not accurate. A bond is usually a part of the perma- nent capital of the business. Both bonds and notes may be either secured by mortgage or pledge of EXEMPT AND TAXABLE 11 property of the promisor, or may be unsecured. Municipal bonds are technically the obligations of corporations, because our counties, cities, and towns are technically municipal corporations. Other cor- porations are sometimes called private corporations. In the scheme of this book, however, the word ' ' cor- poration " is used as applying only to other than municipal corporations, that is, it does not apply to counties, cities, towns, or other subdivisions of states. (7) United States bonds are made by federal stat- ute entirely exempt from state and local taxation in the hands of the holder. (U. S. Eev. St., Sec. 3701.) To avoid constant repetition of the full statement of authority regarding United States bonds a ref- erence to this page has been inserted in the appro- priate place in the classification in each state. (8) There is a growing tendency on the part of the states to exempt from taxation their own bonds. (9) Municipal bonds are those issued by the per- manent subdivisions of states, such as counties, cities, and towns, and also certain temporary sub- divisions of states usually created for the purpose of constructing some public work, such as drainage districts, water or fire districts. (10) In the hands of a citizen of some state other than that in which they were issued, such bonds as are described in sections 8 and 9 may properly be called foreign bonds. (11) The bonds of business corporations may be secured or unsecured, and this, in some states, makes 12 INVESTMENT SECURITIES a difference in their taxability, as noted herein. What are known as short term notes of corpora- tions, which are really short term bonds issued under the provisions of some indenture of trust, are included under this section. (12 and 13) No explanation seems necessary re- garding these familiar investments. BANK DEPOSITS. Bank deposits are technically obligations of the bank to the depositor; that is, contracts to repay him a certain sum of money deposited. It seems wise to include in this book an explanation of the tax laws upon such deposits in order that the in- vestor may be able to make comparisons between the taxation of securities, more properly so-called, and the burden on the same amount of money de- posited in a bank of discount or in a savings bank. In section 15 the title * * banks ' ' of course includes " trust companies." DEDUCTION OF DEBTS. In many states the owner of obligations, such as bonds, notes, or bank deposits, may deduct there- from the value of any interest-bearing debts which he owes and return for taxation only the balance. Where this is permitted a note to that effect has been inserted in our summary. We have not at- tempted to go into details on this important subject EXEMPT AND TAXABLE 13 because there is a large volume of law defining the statutes which would exceed the limitations of our space. The general principle is that debts may be deducted from credits. There is great diversity of interpretation as to what is a credit. A few states allow deduction of debts from all securities. Very frequently the right is qualified so as to prevent a purchase of non-taxables on credit or other devices to create such a set-off and thus reduce taxes. In any case, where the question is of importance, the statute and decisions should be examined. In some states where credits, such as notes, bonds, or bank deposits are taxed, the average for a whole year is taxed instead of the amount owned on a certain day. We have not attempted to distin- guish these cases. Income taxes on the income from property are not common. Some of those that are levied fall on the income from property otherwise exempt. It is im- portant, therefore, to make note of such laws. In general, it should be borne in mind that the letter of the law regarding taxation of intangibles is seldom enforced with any degree of effectiveness or uniformity in those states which employ this method of raising revenue, so that the exact local situation cannot be grasped from a study of the written law. In many other states the courts have interpreted the law so as practically to exempt all stock from taxation. In order to approximate the actual local practice, we have corresponded with the taxing officers of all the states, and, when possible, 14 INVESTMENT SECURITIES have obtained their unofficial approval of our sum- maries. In some instances we are unable to find statutes or decisions to support what they have stated as the local practice. We are indebted for criticism and other assistance to public officials or attorneys in all the states. ALABAMA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, the bank to pay the tax. (Gen. Laws 1911, p. 177, Sec. 25.) (b) Alabama banks. Taxable to the holder, the bank to pay the tax. (See note at end of Sec. 5.) (Gen. Laws 1911, p. 177, Sec. 25.) (c) Banks of other states and countries. Taxable. (Gen. Laws 1911, p. 177, Sec. 25.) (d) Building and loan associations. Taxable to the holder, the association to pay the tax. (Gen. Laws 1911, p. 177, Sec. 25.) Sec. 2. Public Service Corporation Stocks. (a) Alabama corporations. Exempt. (See note at end of Sec. 5.) (Code 1907, Sec. 2082, Par. 9.) (b) Corporations other than Alabama corporations. Taxable. (Code 1907, Sec. 2060, Cl. 2, Sec. 2082, Cl. 9.) [15] 16 INVESTMENT SECURITIES Sec. 3. Insurance Corporation Stocks. (a) Alabama corporations. Exempt. (See note at end of Sec. 5.) (Code 1907, Sec. 2082, Cl. 9.) (b) Corporations other than Alabama corporations. Taxable. (Code 1907, Sec. 2060, Cl. 2, Sec. 2082, Cl. 9.) Sec. 4. Manufacturing Corporation Stocks. (a) Alabama corporations. Exempt. (See note at end of Sec. 5.) (Code 1907, Sec. 2082, Cl. 9.) Special exemption applicable lo stock in cor- porations whether domestic or foreign, (w) Capital stock in companies which are engaged in building and operating factories for the spinning of thread and yarn, the weaving of cloth and other fabrics in cotton and wool in the state, and plants for the purposes of building ships, may be exempt, upon application by the company, from county and municipal taxes for five years from date of organization. (Code 1907, Sees. 2062-3.) (x) Any company organized for the pur- pose of developing hydro-electric power for the use of the public shall be exempt from all state, county, and municipal taxes until ten years from EXEMPT AND TAXABLE ALABAMA 17 beginning of construction. This is not to apply to such plants already developed. Date of Act July 27, 1907. (Code 1907, Sec. 2069.) (y) Calcium Cyanamid (Lime Nitrogen) manufactories are exempt from tax- ation until ten years after beginning of construction. (Code 1907, Sec. 2070.) (z) Any company which has patented or owns exclusively or shall hereafter patent and own exclusively the pat- ent right of any articles designed for the purpose of protecting human life and property, which article has not heretofore been manufactured for sale, shall be exempt for a period of ten years from August 9, 1907, from taxation upon all its property devoted exclusively to the manufac- ture of such article, etc., and the stock of the stockholders of such cor- porations shall be exempt for said period of ten years. (Code 1907, Sec. 2073.) (b) Corporations other than Alabama corporations. Taxable unless included in classes w, x, y, or z under Sec. 4a above. (Code 1907, Sec. 2060, Cl. 2, Sec. 2082, Cl. 9.) 2 18 INVESTMENT SECURITIES Sec. 5. Other Business Corporation Stocks. (a) Alabama corporations. Exempt. (See note at end of this section.) (Code 1907, See. 2060, Cl. 2.) (b) Corporations other than Alabama corporations. Taxable. (Code 1907, Sec. 2060, Cl. 2.) NOTE. The same rules apply to all four classes of stock (viz., Sees. 2, 3, 4, and 5). If incorporated under the laws of Alabama the stock is technically tax- able to the shareholder, but the corporation is obliged to pay the tax for him and in practice charges it in with other expenses and does not directly collect it from the shareholder, so that the stock in the hands of the holder is really exempt by statute. (Code 1907, Sec. 2082, Cl. 9.) Stock in all companies incorporated outside Alabama is taxable to the holder (Code 1907, Sees. 2060, 2082, Cl. 9. See also State v. Kidd, 125 Ala. 413), but in practice it is hardly ever assessed. Stock in certain manufacturing companies above specified doing business in Alabama is wholly exempted even from the tax paid by the corporation. The court has decided that where a corporation owns bonds that are exempt, it is entitled to a credit to that extent against the value of its shares taxed to the holder. Under this it is possible for an insurance company or a bank to escape the entire tax on its shares. Sec. 6. Unincorporated Association Stocks. Such shares are uncommon in Alabama and the exact application of existing tax laws is uncertain. If regarded as property, as EXEMPT AND TAXABLE ALABAMA 19 distinguished from tHe property of the as- sociation, after the analogy of corporation stocks, they would be taxable under Code 1907, Sec. 2060. Regarded merely as part- nerships the property of the association would be taxed to the firm and not to the shareholders. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Alabama State Bonds. Exempt. (Gen. Laws 1911, p. 172, Sec. 13.) Sec. 9. Alabama Municipal Bonds, Exempt. (Gen. Laws 1911, p. 172, Sec. 13.) Sec. 10. State and Municipal Bonds of other States and Countries. Taxable. (Code 1907, Sec. 2082, Cl. 11.) Sec. 11. Corporation Bonds. Taxable, (but see Sec. 12 below). (Code 1907, Sec. 2082, Cl. 11.) 20 INVESTMENT SECURITIES NOTES. Sec, 12. Notes Secured by Real Estate Mortgages. Exempt, if land mortgaged is in the state, and if instrument to secure payment of the note is recorded, and the recording tax paid as provided by law. (Code 1907, Sec. 2082, Cl. 7, A-D.) (Gen. Acts 1911, p. 173, Sec. 14.) Otherwise they are taxable. (Code 1907, Sees. 2060, 2082, Cl. 7 (i).) Sec. 13. Commercial Paper. Taxable. (Code 1907, Sees. 2060 and 2082, Cl. 7 (i).) Sees. BANE DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Alabama Banks. 16. Deposits in Alabama Savings Banks. 17. Deposits in Banks Located Outside Ala- bama. Exempt. (Gen. Laws 1911, p. 172, Sec. 13.) ARIZONA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but the tax is paid by the bank. (Civil Code, Sees. 3837, 3838, 3839.) (b) Arizona banks. Taxable, but the tax is paid by the bank. (Civil Code, Sec. 3837.) (c) Banks of other states and countries. Taxable if the bank is located in Arizona, otherwise exempt. (Civil Code, Sec. 3837.) (d) Building and loan associations. Taxable whether incorporated under the laws of Arizona or elsewhere. (Civil Code, Sec. 3837; Const., Art. 14, Sec. 1.) '2. Public Service Corporation Stocks. g 3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. 5. Other Business Corporation Stocks. r (b) Corporations other than Arizona corporations. \ (a) Arizona corporations. Exempt if all the property of the corpora- tion is located in Arizona, otherwise tax- able. It makes no difference where the [21] 22 INVESTMENT SECURITIES corporation gets its charter, that is, whether it is domestic or foreign. (Civil Code, Sec. 3837.) Sec. 6. Unincorporated Association Stocks. Same as Sec. 5. (Const., Art. 14, Sec. 1.) Except banking associations, which would be treated like banking corporations. (Civil Code, Sec. 3837.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Arizona State Bonds. Exempt. (Const., Art. 9, Sec. 2.) Sec. 9. Arizona Municipal Bonds. Exempt. (Const, Art. 9, Sec. 2.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Civil Code, Sec. 3834.) Sec. 11. Corporation Bonds. Taxable. (Civil Code, Sec. 3834.) EXEMPT AND TAXABLE ARIZONA 23 NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is located in Arizona or elsewhere. (Civil Code, Sec. 3834.) NOTE. Sec. 3834 also states however that nothing therein "shall be construed to require or permit double taxation.'' This has not yet been construed. Sec. 13. Commercial Paper. Taxable. (See note after Sec. 17.) (Civil Code, Sec. 3835.) Sees. BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Arizona Banks. 16. Deposits in Arizona Savings Banks. 17. Deposits in Banks Located Outside Arizona. Taxable. (Const., Art. 9, Sec. 2.) NOTE. By Civil Code, Sec. 3835, " Whenever sol- vent debts are assessed, the person assessed may de- duct therefrom his liabilities." ARKANSAS. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable. Tax to be paid by the bank on be- half of the holder. (Kirby's Digest of the Statutes, 1904, Sees. 6919- 6923; Bank v. Board, 92 Ark. 344, 122 S. W. 988.) (b) Arkansas banks. Taxed in the same manner as national banks. (c) Banks of other states and countries. Taxable. (Kirby's Digest of the Statutes, 1904, Sees. 6872, 6873, 6910.) (d) Building and loan associations. Only the unredeemed shares of such stock, or those not transferred to the association are taxed these to the owner. (Kirby's Digest of the Statutes, 1904, Sec. 6935.) Sec. 2. Public Service Corporation Stocks. (a) Arkansas corporations. Exempt. (Kirby's Digest of the Statutes, 1904, Sees. 6902, 6929-31; Kirby's Digest, Supp. 1911, Sees. 6929, 6936. See also Dallas County v. Insurance Com- pany, 133 S. W. 1113.) [24] EXEMPT AND TAXABLE AEKANSAS 25 (b) Corporations other than Arkansas corporations. Taxable, except railroad, sleeping, dining or private car companies, express or tele- graph companies which are doing busi- ness in Arkansas, the stock of which is exempt in the hands of the holder, for it must be returned by the company for tax- ation. (Kirby's Digest of the Statutes, 1904, Sees. 6872, 6873, 6902, 6910, 6929-31.) {3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. 5. Other Business Corporation Stocks. (a) Arkansas corporations. Exempt. (Kirby's Digest of the Statutes, 1904, Sees. 6902, 6910; Kirby's Digest, Supp. 1911, Sec. 6882; Dallas County v. Banks, 87 Ark. 488, 113 S. W. 37.) (b) Corporations other than Arkansas corporations. Taxable, unless the corporation is doing busi- ness within this state, when its stock is exempt in the hands of the holder. (Kirby's Digest, 1904, Sees. 6872, 6873, 6906, 6910; Kirby's Digest, Supp. 1911, Sec. 6882.) Sec. 6. Unincorporated Association Stocks. Shares of unincorporated associations which are transferable without the consent of the other partners or stockholders are treated the same as those of corporations. (Kirby's Digest, 1904, Sees. 6872, 6906.) 26 INVESTMENT SECURITIES BONDS. Sees. , Sec. 7. United States Bonds. Exempt. (See p. 11.) 8. Arkansas State Bonds. 9. Arkansas Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Kirby's Digest, 1904, Sees. 6872-3.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Arkansas or elsewhere. (Kirby's Digest, 1904, Sees. 6872-3. See also Ouachita v. Rumph, 43 Ark. 525.) Sec. 13. Commercial Paper. Taxable. (See citations under Sec. 12.) BANK DEPOSITS. Sees. 14. Deposits in National Banks. 15. Deposits in Arkansas Banks. 16. Deposits in Arkansas Savings Banks. 17. Deposits in Banks Located Outside Arkansas. EXEMPT AND TAXABLE ARKANSAS 27 Taxable under the general head of credits. (Kirby's Digest, 1904, Sees. 6872-3.) NOTE. The term " credits " is defined as meaning "excess of the sum of all legal claims and demands whether for money or other valuable things or for labor or services due or to become due to the person liable to pay taxes thereon, * * over and above the sum of legal bona fide debts owing by such person * * *." CALIFORNIA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but the tax is paid by the bank. De- ductions are allowed for investment in real estate by the bank. (Statutes, 1911, Ch. 335, Sec. 4.) (b) California banks. Same as national banks. (Statutes, 1911, Ch. 335, Sec. 4.) (c) Banks of other states and countries. Taxable. (Const. Art. 13, Sec. 14-c. Pol. Code, Sees. 3607, 3617.) (d) Building and loan associations. Exempt. (Pol. Code, Sees. 3608 and 3617 [sixth].) (2. Public Service Corporation Stocks. 3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. , 5. Other Business Corporation Stocks. (a) California corporations. (b) Corporations other than California corporations. If the corporation is doing business in Cali- fornia so that its property or capital can [28] EXEMPT AND TAXABLE CALIFORNIA 29 be taxed there, the shares are exempt in the hands of the holder. If the corpora- tion is not doing business in California, its stock is taxable to the holder. (Const., Art. 13, Sec. 14, Pol. Code, Sees. 3607, 3608, 3617, 3628, 3641, 3663.) In practice hardly any stocks of any kind are taxed in California. Sec. 6. Unincorporated Association Stocks. Exempt in practice. (There are no express authorities, but see citations above.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. California State Bonds. Exempt. (But see Note after Sec. 9.) (Const., Art. 13, Sec. 1%.) Sec. 9. California Municipal Bonds. Exempt. (Const., Art. 13, Sec. 1%.) NOTE. By the constitutional amendment of 1902 above cited, state and municipal bonds thereafter issued were made exempt. In practice now all California state and municipal bonds are exempt. Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Pol. Code, Sees. 3607, 3617.) 30 INVESTMENT SECURITIES Sec. 11. Corporation Bonds. Mortgage bonds of corporations whose prop- erties are taxed in the state are exempt. (Const., Art. 13, Sec. 1.) Other bonds are taxable. (Const., Art. 13, Sec. 1, Pol. Code, Sees. 3607, 3617.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt whether the real estate is in Cali- fornia or elsewhere. (Const., Art. 13, Sec. 1, superseding Pol. Code, Sec. 3617, Div. 2, Subdivision 3, and Sec. 3627, and 72 Cal. 34.) Sec. 13. Commercial Paper. Taxable (but see note after Sec. 17). (Pol. Code, Sees. 3607 and 3617, and Const, Art. 13, Sec. 1, superseding 51 Cal. 243, and Id. 471.) BANK DEPOSITS. Sec. 14. Deposits in National Banks. Taxable (but see note after Sec. 17). (Pol. Code, Sees. 3607, 3617.) Sec. 15. Deposits in California Banks. Taxable (but see note after Sec. 17). (Pol. Code, Sees. 3607, 3617.) EXEMPT AND TAXABLE CALIFOKNIA 31 Sec. 16. Deposits in California Savings Banks. Exempt. (Pol. Code, Sec. 3617 (sixth).) Sec. 17. Deposits in Banks Located Outside Cali- fornia. Taxable. (Pol. Code, Sees. 3607, 3617. But see Note.) NOTE. In assessing solvent credits not secured by mortgage or pledge, a deduction is made for debts due to bona fide residents of the state. (Pol. Code, Sec. 3628.) COLORADO. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but the bank pays the tax for the holder. (Rev. Stat., Sees. 5659, 5753, 5754.) (b) Colorado banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Const, Art. 10, Sec. 6.) This also includes unincorporated banking as- sociations. (Rev. Stat., Sec. 4654.) (d) Building and loan associations. Taxable. (Rev. Stat., Sees. 4654, 5611, 5659, 5754,) But in this case the holder pays the tax. (See Sec. 5611 supra.) (See also Rev. Stat., Sec. 964.) J2. Public Service Corporation Stocks. 3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. 5. Other Business Corporation Stocks, (a) Colorado corporations. Exempt. (Rev. Stat., Sec. 5687.) [32] EXEMPT AND TAXABLE COLORADO 33 (b) Corporations other than Colorado corporations. Taxable in practice. (But see note after Sec. 6.) (Const., Art. 10, Sec. G; Rev. Stat., Sec. 5687.) Sec. 6. Unincorporated Association Stocks. Same as Sec. 5 (a). NOTE. Revised Statutes, Sec. 5687, provides that corporate stock, except in the case of banking cor- porations, shall not be taxed. This provision is un- qualified in its language, and would seem to create a uniform exemption. On the other hand, Constitution, Art. 10, after enumerating certain exemptions, goes on to say (Sec. 6), " all laws exempting from taxa- tion, property other than that hereinbefore mentioned, shall be void." There are no Colorado decisions interpreting Sec. 5687, but it is extremely doubtful if a broad construction would be constitutional. The practice of most assessors is to assess stock in foreign corporations, but the matter is being litigated and is not yet definitely settled. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) 18. Colorado State Bonds. 9. Colorado Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Civil Code, Sec. 477; Rev. Stat., Sees. 5540, 5581.) 3 34 INVESTMENT SECURITIES Sec. 11. Corporation Bonds. Taxable, except bonds secured by real estate. (Civil Code, Sec. 477; Rev. Stat., Sees. 5540, 5542, 5581.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt if the real estate is in Colorado, other- wise taxable. (Rev. Stat., Sec. 5542.) Sec. 13. Commercial Paper. Taxable. (Civil Code, Sec. 477; Rev. Stat., Sees. 5540, 5542, 5581.) But deduction of debts is allowed. (Rev. Stat., Sec. 5584.) BANK DEPOSITS. Sees. - 14. Deposits in National Banks. 15. Deposits in Colorado Banks. 16. Deposits in Colorado Savings Banks. 17. Deposits in Banks Located Outside Colorado. Taxable. This applies to all deposits of resi- dents, wherever made. (Rev. Sat., Sees. 5540, 5542, 5610. See also Rev. Stat., Sec. 5544.) CONNECTICUT. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but the tax is paid by the bank. (G. S. 1902, Sees. 2331, 2335.) (b) Connecticut banks. Taxable, but the tax is paid by the bank. (G. S. 1902, Sees. 2331, 2335.) (c) Banks of other states and countries. Exempt. (See note after Sec. 5.) (d) Building and loan associations. Exempt. (See note after Sec. 5.) 12. Public Service Corporation Stocks. 3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. 5. Other Business Corporation Stocks. f (a) Connecticut corporations. 1 (b) Corporations other than Connecticut corporations. Exempt in practice. NOTE. The statutes of Connecticut exempt from direct taxation in the hands of the holder stock in any corporation whose whole property is assessed *nd taxed in its name. (G. S. 1902, Sec. 2329.) [35] 36 INVESTMENT SECURITIES Also stock in any foreign corporation doing busi- ness and having property in Connecticut. (G. S. 1902, Sec. 2328.) In practice under the decision of Lockwood v. Wes- ton, 61 Conn. 212, shares of stock in all other foreign corporations are exempt. So that no shares of stock are now assessed to the holder in Connecticut. Sec. 6. Unincorporated Association Stocks. Exempt in practice. (Lockwood v. Weston, 61 Conn. 212.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Connecticut State Bonds. Taxable unless issued under a statute that ex- pressly provides for their exemption (but see note after Sec. 17). (G. S. 1902, Sec. 2323.) Sec. 9. Connecticut Municipal Bonds. Taxable (but see note after Sec. 17). (G. S., 1902, Sec. 2323.) Bonds issued by cities or towns to aid cer- tain railroads are exempt. (See Pub. Acts of 1911, Ch. 184.) EXEMPT AND TAXABLE CONNECTICUT 37 Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable (but see note after Sec. 17). (G. S. 1902, Sec. 2323.) Sec. 11. Corporation Bonds. Taxable, except bonds of railroads and street railways operating in the state (but see note after Sec. 17). Apparently the real estate mortgage exemp- tion has not been applied to bonds. (G. S. 1902, Sec. 2323.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Mortgages on Connecticut real estate are ex- empt up to the assessed value of the real estate. (G. S. 1902, Sec. 2319.) Other mortgages are taxable (but see note after Sec. 17). (G. S. 1902, Sec. 2323; 39 Conn. 176; 42 Conn. 426.) Sec. 13. Commercial Paper. Taxable (but see note after Sec. 17). (G. S. 1902, Sec. 2323.) 38 INVESTMENT SECURITIES BANK DEPOSITS. Sec. 14. Deposits in National Banks. Taxable. (G. S. 1902, Sec. 2323.) Sec. 15. Deposits in Connecticut Banks. Exempt as to savings deposits. (Pub. Acts, 1907, Ch. 85.) Otherwise taxable. (G. S. 1902, Sec. 2323.) Sec. 16. Deposits in Connecticut Savings Banks. Exempt. (G. S. 1902, Sec. 2422.) Sec. 17. Deposits in Banks Located Outside Con- necticut. Taxable. (G. S. 1902, Sec. 2323.) NOTE. The holder of bonds, notes, or other choses in action may pay to the State Treasurer a tax of 4 mills per dollar of valuation per year for from one to five years and have the payment certified on the security. Thereafter it is exempt from all state and local taxes for that period. (G. S. 1902, Sec. 2325.) DELAWARE. There is no statute providing for the taxation of stocks, bonds, notes, or deposits, in Delaware, and in practice none are taxed. DISTRICT OF COLUMBIA. There is no statute providing for the taxation of stocks, bonds, notes, or deposits, in the District of Columbia, and in practice none are taxed. [39] FLORIDA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable in name of holder, but the bank pays the tax for the stockholder. (Acts 1907, Ch. 5596, Sec. 8.) (b) Florida banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Acts 1907, Ch. 5596, Sec. 3.) (d) Building and loan associations. Taxable. (Acts 1907, Ch. 5596, Sees 1, 3, and 5.) Sees. ' 2. Public Service Corporation Stocks. 3. Insurance Corporation Stocks. 4. Manufacturing- Corporation Stocks. 5. Other Business Corporation Stocks. (a) Florida corporations. Exempt (but see next note). (Const., Art. XVI, Sec. 16; Acts 1907, Ch. 5596, Sees. 8, 10, 16 and 46. See also Gen. Statutes, Sec. 2655.) [40] EXEMPT AND TAXABLE FLOEIDA 41 (b) Corporations other than Florida corporations. Taxable. (Acts 1907, Ch. 5596, Sec. 3.) NOTE. All shares in corporations are taxable un- der the provisions of the State Constitution whether the company is incorporated under the laws of Florida or of some other state or country. It is provided, however, that if the corporation pays a tax on all its capital stock or property its shareholders need not list their shares for taxation. The practice varies. In some instances stock in Florida corporations is assessed to the corporation and in others to the share- holders. Companies incorporated under the laws of other states and countries, however, do not pay a capital stock tax and so their shareholders resident in Florida are taxable on their shares. No distinction is made with reference to the kind of business the corporation is engaged in. Sec. 6. Unincorporated Association Stocks. Treated the same as corporations. (Acts 1907, Ch. 5596, Sees. 3, 8.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Florida State Bonds. No state bonds outstanding. 42 INVESTMENT SECURITIES J9. Florida Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Acts 1907, Ch. 5596, Sees. 1 and 3.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is located in Florida or elsewhere. (Acts 1907, Ch. 5596, Sees. 1 and 3. See also Lamar v. Palmer, 18 Fla, 147.) Sec. 13. Commercial Paper. Taxable. (See citations under Sec. 12.) BANK DEPOSITS. Secs.^ 14. Deposits in National Banks. 15. Deposits in Florida Banks. 16. Deposits in Florida Savings Banks. 17. Deposits in Banks Located Outside Florida. All taxable. (Acts 1907, Ch. 5596, Sees. 1, 3, 5.) GEORGIA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder but the tax is paid by the bank. (Code 1910, Sec. 991. See also Bank v. Savannah, Dud. 131.) (b) Georgia banks. Same as national banks. (See citations under Sec. 1 (a).) (c) Banks of other states and countries. Taxable. (Code 1910, Sees. 1002, 1087.) (d) Building and loan associations. Exempt if incorporated under the laws of Georgia. Otherwise taxable. (Code 1910, Sees. 985, 1087. See Ga., etc., Rd. v. Wrigjit, 125 Ga. 589.) 2. Public Service Corporation Stocks. 3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. . 5. Other Business Corporation Stocks. (a) Georgia corporations. Exempt. [43] 4A INVESTMENT SECUKITIES (b) Corporations other than Georgia corporations. Taxable. NOTE. The same rules apply to all four classes of stocks (viz., 2, 3, 4, and 5). If incorporated under the laws of Georgia the stock is exempt under the de- cisions of its courts. (Ga., etc., Rd. v. Wright, 125 Ga. 589; City of Albany v. Brown, 74 S. E. 518. See also Code 1910, Sees. 980, 987, 1087.) If incorporated under the laws of any other state or country the stock is taxable. (Ga., etc., Rd. v. Wright, 124 Ga. 596, 598; Code 1910, Sees. 1002, 1087.) Sec. 6. Unincorporated Association Stocks. Such associations would probably.be treated like partnerships in practice and the in- terests of the members would not be sep- arately taxed. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Georgia State Bonds. Exempt. (Penick v. Foster, 129 Ga. 217.) Sec. 9. Georgia Municipal Bonds. Exempt. (Penick v. Foster, 129 Ga. 217.) EXEMPT AND TAXABLE GEORGIA 45 Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Code 1910, Sees. 1016, 1087.) Sec. 11. Corporation Bonds. Taxable. (Code 1910, Sees. 1003, 1016, 1087.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is located in Georgia or elsewhere. (Code 1910, Sec. 1003.) Sec. 13. Commercial Paper. Taxable. (Code 1910, Sec. 1003.) BANK DEPOSITS. Sees. 14. Deposits in National Banks. 15. Deposits in Georgia Banks. 16. Deposits in Georgia Savings Banks. 17. Deposits in Banks Located Outside Georgia. Taxable. (Code 1910, Sees. 1002, 1003, 1087.) IDAHO. STOCKS. Sec. 1. Banks. (a) National banks. Taxable, but the tax is paid by the bank. De- duction is allowed for real estate owned by the bank. (Rev. Codes, Sec. 1672, as amended by Extra Session Laws of 1912, eh. 8.) (b) Idaho banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Rev. Codes, Sees. 1643 and 1646, as amended by Ex- tra Session Laws of 1912, Ch. 8.) (d) Building and loan associations. Exempt. (Rev. Codes, Sees. 1671, 1673.) Sec. 2. Public Service Corporation Stocks, (a) Idaho corporations. Exempt. (Rev. Codes, Sees. 1654, 1671, 1673, 1710, 1713, and Sec. 1714 as amended by Extra Session Laws of 1912, Ch. 8.) [46] EXEMPT AND TAXABLE IDAHO 47 (b) Corporations other than Idaho corporations. Taxable. (Rev. Codes, Sec. 1643, and Sec. 1646, as amended by Extra Session Laws of 1912, Ch. 8.) Sec. 3. Insurance Corporation Stocks. (a) Idaho corporations. Exempt if the corporation does business in the state; otherwise taxable. (Rev. Codes, Sees. 1643, 2867, and Sec. 1646, as amended as aforesaid.) (b) Corporations other than Idaho corporations. Same as Sec. 3 (a). Sec. 4. Manufacturing Corporation Stocks. (a) Idaho corporations. Exempt if the property or capital is taxed within the state; otherwise taxable. (Rev. Codes, Sees. 1643, 1671, 1673 and Sec. 1646, as amended as aforesaid.) (b) Corporations other than Idaho corporations. Same as Sec. 4 (a). Sec. 5. Other Business Corporation Stocks. (a) Idaho corporations. Same as Sec. 4. (b) Corporations other than Idaho corporations. Same as Sec. 4. Sec. 6. Unincorporated Association Stocks. Same as Sec. 4. (Rev. Codes, Sees. 1643, 1671, 1673.) 48 INVESTMENT SECTJKITIES BONDS. Secs.^ Sec. 7. United States Bonds. Exempt. (See p. 11.) 8. Idaho State Bonds. 9. Idaho Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Rev. Codes, Sec. 1643, and Sec. 1646, as amended as aforesaid.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt whether the real estate is in Idaho or elsewhere. (Rev. Codes, Sec. 1644, as amended by Extra Session Laws 1912, Ch. 8.) Sec. 13. Commercial Paper. Taxable. (Rev. Codes, Sec. 1643, and Sec. 1646, as amended as aforesaid.) EXEMPT AND TAXABLE IDAHO 49 DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Idaho Banks. Secs.^j 16. Deposits in Idaho Savings Banks. 17. Deposits in Banks Located Outside Idaho. Taxable. (Rev. Codes, Sec. 1643, and Sec. 1646, as amended as aforesaid, and Sec. 1682.) NOTE. Deduction of debts from credits is allowed. (Rev. Codes, Sees. 1653 and 1683, as amended by Extra Session Laws of 1912, Ch. 8.) 4 ILLINOIS. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder but the bank may pay the tax and must retain the amount of the tax from the dividend until it shall appear that the tax has been paid. (R. S. 1911, Ch. 120, Sees. 35-39.) (b) Illinois banks. Same as national banks. (c) Banks of other states and countries. Taxable. (R. S. 1911, Ch. 120, Sec. 1.) (d) Building and loan associations. Taxable. (R. S. 1911, Ch. 120, Sec. 29. See also Matter of St. Louis, etc., Investment Co., 194 111. 609, de- claring that the proviso of Sec. 29 (a-d) exempting pledged stock of building and loan associations is unconstitutional. ) 2. Public Service Corporation Stocks. 3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. 5. Other Business Corporation Stocks. (a) Illinois corporations. Exempt. (R. S. 1911, Ch. 120, Sees. 3, 32-34, and 108.) [50] Sees. EXEMPT AND TAXABLE ILLINOIS 51 (b) Corporations other than Illinois corporations. Taxable. (R. S. 1911, Ch. 120, Sees. 1, 6, 25, and 312.) Sec. 6. Unincorporated Association Stocks. Treated like shares in corporations. (R. S. 1911, Ch. 120, Sees. 1, 3, 6, 25.) BONDS. Sees. Sec. 7. United States Bonds. Exempt. (See p. 11.) r 8. Illinois State Bonds. 9. Illinois Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (R. S. 1911, Ch. 120, Sees. 1, 3, 6, 20, 25, and 312.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is located in Illinois or elsewhere. (R. S. 1911, Ch. 120, Sees. 1, 3, 6, 21, 25, and 312.) Sec. 13. Commercial Paper. Taxable. (See citations under Sec. 12.) 52 INVESTMENT SECURITIES BANK DEPOSITS. Sees. < 14. Deposits in National Banks. 15. Deposits in Illinois Banks. 16. Deposits in Illinois Savings Banks. 17. Deposits in Banks Located Outside Illinois. Taxable under head of credits. (R: S. 1911, Ch. 120, Sees. 1, 3, 6, 24, 25, 27, 28, 312. See also Durbin v. People, 54 111. App. 101.) NOTE. A deduction of debts from credits is allowed. (R. S. 1911, Ch. 120, Sees. 27-28.) INDIANA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but the bank pays the tax and deducts from dividends. Deduc- tion may be made for the value of the real estate taxed to the bank. (Burns' Annotated Statutes Revision of 1908, Sees. 10,143, 10,160, 10,208-10,215.) (b) Indiana banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Burns' Annotated Statutes Revision of 1908, Sees. 10,142, 10,143, 10,199, and 10,202.) (d) Building and loan associations. Taxable except such as are held by borrow- ers, which are exempt to the extent of the amount borrowed. (Burns' Annotated Statutes Revision of 1908, Sees. 10,202, 10,250; Deniston v. Terry, 141 Ind. 677, 41 N. E. 143; Co-op. Association v. State, 156 Ind. 463, 60 N. E. 146; State v. Real Estate, etc., Associa- tion, 152 Ind. 278, 51 N. E. 1061; State v. Brackett, 141 Ind. 702, 41 N. E. 145.) [53] 54 INVESTMENT SECURITIES Sec. 2. Public Service Corporation Stocks. (a) Indiana corporations. Exempt unless the corporation has all its prop- erty outside the state and is not taxed on its capital stock in Indiana in which case its shares are taxable to the holder. (Burns' Annotated Statutes Revision of 1908, Sees. 10,143, 10,161, 10,199, 10,202. 10,217-10,222, 10,226, 10,233-10,234, 10,236-10,249.) (b) Corporations other than Indiana corporations. Taxable. (Burns' Annotated Statutes Revision of 1908, Sees. 10,143, 10,199, 10,202; Cook v. Board, 92 N. E. 877.) 3. Insurance Corporation Stocks. Sees. - 4. Manufacturing Corporation Stocks. . 5. Other Business Corporation Stocks, (a) Indiana corporations. Exempt unless the corporation has all its prop- erty outside the state and is not taxed on its capital stock in Indiana in which case its shares are taxable to the holder. (Burns' Annotated Statutes Revision of 1908, Sees. 10,143, 10,161, 10,199, 10,202, 10,233-10,234.) (t>) Corporations other than Indiana corporations. Taxable. (Burns' Annotated Statutes Revision of 1908, Sees. 10,143, 10,199, 10,202.) Sec. 6. Unincorporated Association Stocks. Exempt. (Bums' Annotated Statutes Revision of 1908, Sees. 10,- 143, 10,162; State Board v. Holliday, 150Ind.216.) EXEMPT AND TAXABLE INDIANA 55 BONDS. Sec. 7. United States Bonds. Exempt. (See page 11.) Sec. 8. Indiana State Bonds. Exempt if issued since April 23, 1903, other- wise taxable. (Burns' Annotated Statutes Revision of 1908, Sec. 10,156.) Sec. 9. Indiana Municipal Bonds. Same as state bonds. Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Burns' Annotated Statutes Revision of 1908, Sees. 10,142, 10,143, 10,199, 10,202.) Sec. 11. Corporation Bonds. Taxable. (See citations under Sec. 10.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Indiana or elsewhere. (Burns' Annotated Statutes Revision of 1908, Sees. 10,142-10,143, 10,199, 10,202; Stephen v. Smith, 30 Ind. App. 120, 65 N. E. 287. See also Acts of 1907, Ch. 25.) 56 INVESTMENT SECURITIES Sec. 13. Commercial Paper. Taxable. (See citations under Sec. 12.) Sees. . BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Indiana Banks. 16. Deposits in Indiana Savings Banks. 17. Deposits in Banks Located Outside Indiana. (Burns' Annotated Statutes Revision of 1908, Sees. 10.142, 10,143, 10,199, 10,202.) Taxable. NOTE. The provisions as to deduction of debts owing by the taxpayer are to the following effect: From the following items of taxable property, annui- ties, bonds, notes secured by mortgage, other notes, accounts, shares of stock in building and loan asso- ciations, and all other accounts (except moneys de- posited with banks, firms, corporations, and individu- als), he may deduct the value of all notes and accounts owing by him. (Burns' Annotated Statutes Revision of 1908, Sees. 10.143, 10,202.) IOWA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable. Deduction is allowed for capital actually invested in real estate owned by the bank. (Session Laws, 1911, Ch. 63, Sec. 4.) (b) Iowa banks. Taxable. Deduction is allowed for capital actually invested in real estate owned by the bank. (Session Laws 1911, Ch. 63, Sees. 4, 5.) (c) Banks of other states and countries. Taxable. (Iowa Code, Sec. 1308. See also 137 Iowa, 24.) (d) Building and loan associations. Taxable. (Iowa Code, Sees. 1308, 1310, 1323; 125 Iowa, 148. Deduction of debts is allowed. Code, Sec. 1311. In 150 Iowa, 677, it was held that deduction of debts was allowed from shares of stock only in the case of building and loan associations.) [57] 58 INVESTMENT SECURITIES Sec. 2. Public Service Corporation Stocks. (a) Iowa corporations. The shares are taxable for the balance, after the property has been taxed. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1310, 1313, 1323, 1343.) The capital stock of express companies is taxed directly to the corporation, and the shares as such are exempt. (Code Suppl., Sec. 1346-a). Shares in telephone and telegraph, companies are expressly exempt. (Code Suppl., Sec. 1330-g.) The same is true of railroad stock. (Code Suppl., Sec. 1342-g.) In all cases where corporate shares are taxed, the cor- poration pays the tax for the holder, and may re- cover it from the shareholder, and this applies to all kinds of domestic corporations. (Code, Sec. 1325.) Deduction is allowed for real estate owned by the corporation. (Sec. 1323 supra.) (b) Corporations other than Iowa corporations. Taxable. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1310, 1313; 137 Iowa, 24.) Sec. 3. Insurance Corporation Stocks. (a) Iowa corporations. Taxable to the holder, but the corporation pays the tax for the holder. Deductions are allowed for real estate owned by the corporation. (But see note after Sec. 17.) (Iowa Code, Sees. 1323, 1324, 1325; Code Suppl., Sec. 1333-a.) (b) Corporations other than Iowa corporations. Taxable. (But see note after Sec. 17.) (Iowa Code Suppl., Sec. 1333, as amended by Session Laws of 1911, Ch. 18, Sec. 2.) EXEMPT AND TAXABLE IOWA 59 Sec. 4. Manufacturing Corporation Stocks. (a) Iowa corporations. Exempt if the corporation has property taxed in Iowa; otherwise taxable. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1310, 1313, 1319, 1323. (b) Corporations other than Iowa corporations. Taxable. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1310, 1313.) Sec. 5. Other Business Corporation Stocks. (a) Iowa corporations. Exempt if the corporation has property taxed in Iowa; otherwise taxable. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1310, 1313, 1318, 1323.) (b) Corporations other than Iowa corporations. Taxable. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1310, 1313.) Sec. 6. Unincorporated Association Stocks. Property taxed like that of any other part- nership. Hence, shares exempt to the holder. (Iowa Code, Sees. 1308, 1317.) BONES. Sec. 7. United States Bonds. Exempt. (See page 11.) 60 INVESTMENT SECURITIES Sec. 8. Iowa State Bonds. Taxable. (But see note after Sec. 17.) (Iowa Code, Sec. 1310.) Sec. 9. Iowa Municipal Bonds. Exempt if issued after July 4, 1909. (This includes also school and drainage bonds.) (Code Suppl., Sec. 1304, as amended by Session Laws of 1909, Ch. 81, Sec. 1.) Otherwise taxable. (Iowa Code, Sec. 1310.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (But see note after Sec. 17.) (Iowa Code, Sec. 1310.) Sec. 11. Corporation Bonds. Taxable. (But see note after Sec. 17.) (Iowa Code, Sec. 1310.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Iowa or elsewhere. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1309, 1310; 33 Iowa, 376.) Sec. 13. Commercial Paper. Taxable. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1309, 1310.) Sees EXEMPT AND TAXABLE IOWA 61 BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Iowa Banks. 16. Deposits in Iowa Savings Banks. 17. Deposits in Banks Located Outside Iowa. Taxable. (But see note after Sec. 17.) (Iowa Code, Sees. 1308, 1310, 1313; 43 Iowa, 600.) NOTE. Moneys, credits, and shares of stock in cor- porations other than banks, except as otherwise pro- vided, are taxed at the rate of 5 mills on the dollar of actual valuation, in lieu of all other taxes. This in- cludes all taxable corporate shares other than those in banks, trust companies, and building and loan asso- ciations; also all taxable bonds, all mortgages, notes, and bank deposits. (Iowa Code, Sec. 1310, as amended by Laws of 1911, Ch. 63, Sec. 1.) KANSAS. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but in practice the bank pays the tax for the holder. Deductions are allowed for real estate owned by the bank. (Gen. Stat,, Sec. 9298; 45 Kans. 726, and 59 Kans. 410, overruling 6 Kans. App. 74.) - (b) Kansas banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Gen. Stat., Sees. 9214, 9215, 9226; 82 Kans. 824.) (d) Building and loan associations. Taxable to the holder; deduction is allowed for real estate owned by the association. (Gen. Stat., Sec. 9244.) c 2. Public Service Corporation Stocks. I 3. Insurance Corporation Stocks. I 4. Manufacturing Corporation Stocks. I 5. Other Business Corporation Stocks, (a) Kansas corporations. Exempt. (Gen. Stat., Sec. 9229.) [62] EXEMPT AND TAXABLE KANSAS 63 (b) Corporations other than Kansas corporations. Exempt if its principal place of business is in Kansas, otherwise taxable. (Gen. Stat., Sees. 9214, 9215, 9226, 9243, 9298; 82 Kans. 824.) Sec. 6. Unincorporated Association Stocks. Exempt if the association has property in the state. (Gen. Stat., Sec. 9229.) Otherwise taxable. Such shares are in fact practically unknown in Kansas. (Gen. Stat., Sees. 9214, 9215, 9226.) BONDS. Sec. 7. United States Bonds. Exempt. (See page 11.) The interest on such bonds is, however, tax- able. (Gen. Stat., Sec. 9226.) Sec. 8. Kansas State Bonds. Exempt. (Gen. Stat., Sec. 9350.) Sec. 9. Kansas Municipal Bonds. Exempt. (Gen. Stat., Sec. 9350.) 64 INVESTMENT SECUEITIES Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Gen. Stat., Sec. 9226.) Sec. 11. Corporation Bonds. Taxable. (Gen. Stat., Sec. 9226.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Kansas or elsewhere. (Gen. Stat., Sec. 9037; 6 Kans. 403; 76 Kans. 816.) Sec. 13. Commercial Paper. Taxable. (Gen. Stat., Sees. 9037, 9220. Deduction is allowed for unsecured debts owing by the holder. Sec. 9222, supra.) BANK DEPOSITS. Sees. 14. Deposits in National Banks. 15. Deposits in Kansas Banks. 16. Deposits in Kansas Savings Banks. 17. Deposits in Banks Located Outside Kansas. Taxable. (Gen. Stat., Sees. 9037, 9215, 9220.) KENTUCKY. STOCKS. Sec. 1. Bank Stocks, (a) National banks. Taxable to the holder, the bank to pay the tax. (Kentucky Statutes, Sec. 4092; Acts of 1906, Ch. 22, Art, 4, Subd. 2, Sees. 1-5.) ecs '" 96 INVESTMENT SECURITIES Sec. 6. Unincorporated Association Stocks. Same as Sec. 5. (Rev. Laws, Sees. 816, 838.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Minnesota State Bonds. Exempt if issued since April 18, 1911; other- wise taxable as under Sec. 10. (Acts of 1911, Ch. 242.) Sec. 9. Minnesota Municipal Bonds. Same as Sec. 8. Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable at three mills on the dollar of valua- tion. (Rev. Laws, Sees. 794, 797 (8), 816, 835 (23); Acts 1911, Ch. 285.) Sec. 11. Corporation Bonds. Taxable, but where the bonds are secured by real estate in Minnesota the exemption applicable to ordinary mortgage notes ap- EXEMPT AND TAXABLE MINNESOTA 97 plies (see below). "Where taxable the rate is three mills on the dollar of valuation. (Same citations.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt. NOTE. There is a recording fee in lieu of all other taxes applicable to mortgages recorded since April 30, 1907. If the holder of a mortgage recorded before that date voluntarily pays the recording fee, the notes or bonds are exempt. Mortgages of real estate partly within and partly without the state are exempt on payment of the recording fee. (Rev. Laws, Suppl. 1909, Sec. 1038, Subds. 25-33 inclusive; 134 N. W. 728.) Mortgages held by national, state, and savings banks, and building and loan associations, which are taxed on capital stock, are exempt. (Rev. Laws, Sees. 835 (20), 838.) Mortgages of land entirely outside the state are taxable at three mills on the dollar of valua- tion. (Acts 1911, Ch. 285.) Sec. 13. Commercial Paper. Taxable at three mills on the dollar of valua- tion. (Acts 1911, Ch. 285; Rev. Laws, Sec. 798, Subd. 2.) Credits held by national, state, and savings banks which are taxed on their capital stock are exempt. (Rev. Laws, Sees. 835 (20), 838.) 7 98 INVESTMENT SECUEITIES BANK DEPOSITS. Sees. 14. Deposits in National Banks. 15. Deposits in Minnesota Banks. 16. Deposits in Minnesota Savings Banks. 17. Deposits in Banks Located Outside Minnesota. Taxable at three mills on the dollar of valua- tion. (Acts of 1911, Ch. 285; Rev. Laws, Sec. 798 (1) ; 134 N. W. 643.) MISSISSIPPI. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, bank to pay the tax. (Code 1906, Sec. 4273; Bank v. Oxford, 70 Miss. 504.) (b) Mississippi banks. Taxed in the same manner as shares in na- tional banks. (Code 1906, Sec. 4273; Bank v. Oxford, 70 Miss. 504.) (c) Banks of other states and countries. Taxable. (Code 1906, Sec. 4260.) (d) Building and loan associations. Taxable whether domestic or foreign. (Code 1906, Sees. 4257 and 4258.) r 2. Public Service Corporation Stocks. _ I 3. Insurance Corporation Stocks. c [ 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. (a) Mississippi corporations. Exempt. (See next note.) (b) Corporations other than Mississippi corporations. Taxable. (See next note.) NOTE. If incorporated under the laws of Missis- sippi the shares of stock would seem to be exempt, [99] 100 INVESTMENT SECURITIES for a corporation is taxed on all of its property, and the amount of its capital stock is used as a basis for determining the values. (Bank v. Oxford, 70 Miss. 504; State v. Simmons, 70 Miss. 485. See also Code 1906, Sees. 4267, 4382-3, 4392-3.) If incorporated under the laws of any other state or country the stock is tax- able under the general head of property. (Code 1906, Sec. 4257.) Sec. 6. Unincorporated Association Stocks. If treated as partnerships, they are exempt. Shares of domestic joint-stock associa- tions are taxed in the same manner as shares in corporations. (Code 1906, Sec. 4267.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Mississippi State Bonds. Taxable, except all state bonds or other gov- ernmental obligations issued after April 1, 1906, which are exempt from taxation of any character whatever. (But see note after Sec. 13.) (Code 1906, Sec. 4251w; Laws 1908, p. 206.) Sec. 9. Mississippi Municipal Bonds. Taxable, except drainage district bonds (Gen. Laws 1908, Ch. 141), and all county, mu- EXEMPT AND TAXABLE MISSISSIPPI 101 nicipal, levee, or school bonds issued after April 1, 1906. (But see note after Sec. 13.) (Code 1906, Sec. 4251w.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (But see note after Sec. 13.) (Code 1906, Sec. 4257.) Sec. 11. Corporation Bonds. Taxable. (But see note after Sec. 13.) (Code 1906, Sec. 4257. See also Laws 1910, Ch. 196, requiring holders of mortgage bearer bonds of cor- porations to list the same for taxation on penalty of forfeiture of all interest on such bonds and loss of right of recovery in the courts of this state.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the land is in Mississippi or elsewhere. (But see note after Sec. 13.) (Code 1906, Sees. 4257, 4266; Adams v. Mortgage Co., 82 Miss. 263; Itev. Agent v. Kuykendall, 83 Miss. 571.) Sec. 13. Commercial Paper. Taxable. (Code 1906, Sees. 4257, 4266.) NOTE. All notes and evidences of indebtedness bearing a rate of interest not greater than six per cent, per annum, and all money loaned at a rate of interest not exceeding six per cent, per annum is exempt from all taxes of any character whatever. (Code 1912, Ch. 241.) 102 INVESTMENT SECUKITIES BANK DEPOSITS. Sees. ' 14. Deposits in National Banks. 15. Deposits in Mississippi Banks. 16. Deposits in Mississippi Savings Banks. 17. Deposits in Banks Located Outside Mississippi. Taxable. (Code 1906, Sees. 4257, 4266.) NOTE. The laws of Mississippi purport to tax nonresidents who have a usual place of business or " have localized property in this state so as to give it a situs here " on bonds, notes, or other securities for money. (Code 1906, Sec. 4266; Adams v. Mortgage Co., 82 Miss. 263.) No deduction is allowed to taxpayer for debts owing by him. (Panola County v. Carrier, etc., 89 Miss. 283.) MISSOURI. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but the bank pays the tax for the holder. Deduction is allowed for real estate owned by the bank. (Acts of 1911, p. 417.) (b) Missouri banks. Same as national banks. (c) Banks of other states and countries. Exempt. (State v. Lesser, 237 Mo. 310.) (d) Building and loan associations. Taxable if no loan has been obtained thereon from the association. Otherwise exempt. But the association pays the tax for the holder. (Rev. Stat., Sees. 11358, 11359; 145 Mo. 50.) The same rule would apply to building and loan associations incorporated by some state other than Missouri if doing busi- ness in Missouri. (Rev. Stat., Sees. 3406, 11358.) [103] 104 INVESTMENT SECURITIES Sec. 2. Public Service Corporation Stocks. (a) Missouri corporations. Exempt. (Rev. Stat., Sees. 11387, 11552.) (b) Corporations other than Missouri corporations. Exempt. (State v. Lesser, 237 Mo. 310.) NOTE. There is a possible exception of shares in companies either domestic or foreign owning craft navigating the waters of the state, which may be tax- able. (Rev. Stat., Sees. 11519, 11613.) f 3. Insurance Corporation Stocks. Sees. ; 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. (a) Missouri corporations. Exempt. (Rev. Stat., Sees. 11356, 11387; Acts of 1911, p. 417.) (b) Corporations other than Missouri corporations. Exempt. (Rev. St&t., Sec, 11387; Acts of 1911, p. 417; State v. Lesser, 237 Mo. 310.) Sec. 6. Unincorporated Association Stocks. These are treated the same as corporations. The shares are therefore exempt, whether the association be domestic or foreign, ex- cept in the case of banks and building and loan associations. (Const., Art. 12, Sec. 11; citations under Sec. 5 above; also Rev. Stat., Sec. 11340.) EXEMPT AND TAXABLE MISSOURI 105 BONDS. Sees. Sec. 7. United States Bonds. Exempt. (See p. 11.) r 8. Missouri State Bonds. 9. Missouri Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable if located in Missouri. (Rev. Stat., Sees. 11348, 11519.) If not located in Missouri, they are neverthe- less, taxable if ever held in Missouri by the present owner and sent from the state by him, whether to avoid taxation or otherwise, but exempt if never held in Missouri and sent away by him. (Leavell v. Blades, 237 Mo. 695.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable unless the land is outside Missouri and the mortgage note never was in Mis- souri in the hands of the holder and sent away again, in which case it is exempt. (Rev. Stat., Sees. 11348, 11519; Leavell v. Blades, 237 Mo. 695.) 106 INVESTMENT SECURITIES Sec. 13. Commercial Paper. Taxable if located in Missouri or if, having been in Missouri in the hands of the holder, he has sent it outside; otherwise exempt. (Rev. Stat, Sees. 11337, 11348, 11519; Leavell v. Blades, 237 Mo. 695.) BANK DEPOSITS. Sees. < 14. Deposits in National Banks. 15. Deposits in Missouri Banks. 16. Deposits in Missouri Savings Banks. 17. Deposits in Banks Located Outside Missouri. Taxable as credits. (Rev. Stat., Sees. 11348, 11519.) NOTE. Deduction of debts from credits appears to be allowed. There is no statute expressly providing therefor, but Rev. Stat,, Sec. 11386, indicates that such is the practice. MONTANA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable when the bank is located in the state. (Pol. C., Sec. 2503.) Otherwise expressly exempt. (Pol. C., Sec. 2506.) Deductions are allowed for real estate owned by the bank. (Pol. C., Sec. 2505.) (b) Montana banks. Taxable. (Pol. C., Sec. 2503.) Deductions are allowed for real estate owned by the bank. (Pol. C., Sec. 2505.) (c) Banks of other states and countries. Taxable. (Const., Art. 12, Sec. 17; Pol. C., Sec. 2498; Daly Bank v. Board, 33 Mont. 106.) (d) Building and loan associations. Taxable with deduction for loans advanced thereon to members. (Civil C., Sec. 4198.) [107] 108 INVESTMENT SECURITIES Sec. 2. Public Service Corporation Stocks. (a) Montana corporations. Exempt. (Const., Art. 12, Sec. 17; Pol. C., Sec. 2508 and Sees. 2525-2529, inclusive.) (b) Corporations other than Montana corporations. In effect taxable. (Const., Art. 12, Sec. 17; Pol. C., Sec. 2498.) Sec. 3. Insurance Corporation Stocks. (a) Montana corporations. Exempt. (Const., Art. 12, Sec. 17; Pol. C., Sec. 2521.) (b) Corporations other than Montana corporations. Same as domestic when the corporation is doing business in the state. Shares in companies not doing business in the state are taxable. (Const., Art. 12, Sec. 17; Pol. C., See. 2498.) Sec. 4. Manufacturing Corporation Stocks. (a) Montana corporations. Exempt when the corporate property is " within the state and has been taxed." (The courts have not decided whether or not this means that all the property of the corporation must be within the state to entitle its stock to exemption.) (Const., Art. 12, Sec. 17.) Otherwise taxable. (Id. and Pol. C., Sec. 2498.) (b) Corporations other than Montana corporations. Same as Sec. 4 (a). EXEMPT AND TAXABLE MONTANA 109 Sec. 5. Other Business Corporation Stocks. (a) Montana corporations. Same as Sec. 4. (b) Corporations other than Montana corporations. Same as Sec. 4. Sec. 6. Unincorporated Association Stocks. Same as Sec. 4. (Const., Art. 12, Sec. 17.) BONDS. Secs.^ Sec. 7. United States Bonds. Exempt. (See p. 11.) r 8. Montana State Bonds. 9. Montana Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Const., Art. 12, Sec. 17; Pol. C., Sec. 2498.) Sec. 11. Corporation Bonds. Taxable. (Pol. C., Sec. 2511.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Montana or elsewhere. (Const., Art. 12, Sec. 17; Pol. C., Sees. 2498, 2511.) 110 INVESTMENT SECURITIES Sec. 13. Commercial Paper. Taxable. (Const., Art. 12, Sec. 17; Pol. C., Sec. 2498.) DEPOSITS. Sees.* C 14. Deposits in National Banks. 15. Deposits in Montana Banks. 16. Deposits in Montana Savings Banks. 17. Deposits in Banks Located Outside Montana. Taxable. (Const., Art. 12, Sec. 17; Pol. C., Sees. 2498 and 2511.) NOTE. Debts may be deducted from credits. (Pol. C., Sec. 2511.) NEBRASKA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but the bank pays the tax for the holder. (Ann. Stat., Sees. 10955, 11024; 77 Neb. 815.) Deduction is allowed for real estate owned by the bank, and for such of the personal property as is locally assessed. (Sec. 10955, supra.) (b) Nebraska banks. Same as national banks. (c) Banks of other states and countries. Taxable to the holder. (Ann. Stat., Sec. 10927; 84 Neb. 774.) (d) Building and loan associations. Shares are taxable, but are credits; and de- duction of debts is therefore allowed, but if money paid on shares is really money invested, it falls within the class of cred- its not subject to offset for general in- debtedness. (Ann. Stat., Sec. 3813; 73 Neb. 453.) [Ill] 112 INVESTMENT SECUKITIES Sec. 2. Public Service Corporation Stocks. (a) Nebraska corporations. Exempt if the corporation does business in Nebraska, otherwise taxable. (Ann. Stat., Sees. 10927, 10928, 11024; 84 Neb. 774.) (b) Corporations other than Nebraska corporations. Same as Sec. 2 (a). Sec. 3. Insurance Corporation Stocks. (a) Nebraska corporations. Practice doubtful, but the supreme court is in- clined to the opinion that the stock is tax- able subject to deduction of value of real estate and other personal property sepa- rately assessed. (See Ann. Stat., Sees. 10927, 10928, 10957-10960; 70 Neb. 529; 73 Neb. 527; 89 Neb. 469.) (b) Corporations other than Nebraska corporations. Taxable. (See citations under Sec. 3 (a).) Sec. 4. Manufacturing Corporation Stocks. (a) Nebraska corporations. Exempt if the corporation does business in Nebraska; otherwise taxable. (Ann. Stat., Sees. 10927, 10928, 11024; 84 Neb. 774.) (b) Corporations other than Nebraska corporations. (Same as Sec. 4 (a).) EXEMPT AND TAXABLE NEBRASKA 113 Sec. 5. Other Business Corporation Stocks. (a) Nebraska corporations. (Same as Sec. 4 (a).) (b) Corporations other than Nebraska corporations. (Same as Sec. 4 (b).) Sec. 6. Unincorporated Association Stocks. Same as corporation stocks. (Ann. Stat., Sec. 10909.) Hence, generally taxable if the association is outside the state, otherwise exempt. (Ann. Stat., Sees. 10927, 10928, 11024; 84 Neb. 774.) NOTE. Annotated Statutes, Sec. 10927, provides that all shares of stock in corporations or associations shall be taxed unless the capital of the company is taxed in the state. This makes taxable the shares of all corporations or associations located outside the state. Sec. 10928 provides that the capital stock of all companies doing business in the state shall be taxed except as otherwise provided. This section clearly renders the shares of such companies exempt until the legislature has seen fit to make an exception, in a particular case, by expressly exempting the capital stock. This has been done only in the case of building and loan associations, and possibly, though not clearly, in the case of insurance companies. It is therefore possible, except in the ease of insurance companies, to determine the status of shares in all kinds of companies, domestic or foreign. Wherever the capital stock is taxed, the method of assessment is to reckon the total market or actual value of such capital stock, deduct the value of all real or personal property belonging to the company and taxed within the state, and tax the balance as capital. 64 Neb. 514; 65 Neb. 714; 89 Neb. 469. 8 114 INVESTMENT SECURITIES BONDS. Sees. < Sec. 7. United States Bonds. Exempt. (See p. 11.) But if they are in fact purchased for the ex- press purpose of evading taxes, the money invested therein will be taxed as such. (10 Neb. 154; 23 Neb. 697.) The interest is taxed in any case. (Ann. Stat., Sec. 11024.) r 8. Nebraska State Bonds. 9. Nebraska Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Ann. Stat., Sees. 10927, 11024.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable, except mortgages executed after July 1, 1911, which are not taxed apart from the real estate. Mortgages of real estate outside Nebraska are taxable. (Ann. Stat., Sees. 11024, 11411-11415.) NOTE. Under the provisions of the Nebraska statute enacted in 1911 (Ann. Stat., Sees. 11411- 11415), there is a distinction between the note which EXEMPT AND TAXABLE NEBRASKA 115 is secured by real estate mortgage, and the mortgage itself. Under that act, mortgages of real estate executed after July 1, 1911, are treated as an inter- est in the land, and as to mortgages of land located in the state, are taxable to the holder as real estate, while the notes secured thereby are not taxable as such. The mortgagor is taxed only on his equity in the land but may pay the tax assessed on the mort- gage. Mortgages executed prior to July 1, 1911, are taxed under the old provisions of law, as credits or as money loaned or invested. Since the Statute of 1911 treats mortgages as real estate, they cannot be taxed as mortgages when the land is located outside the state. They can, how- ever, be taxed as notes, if a note has been given. All notes secured by mortgage of real estate located outside the state, or of any other kind of property whatsoever, are taxable as credits, or as money loaned or invested, under the provisions of Sec. 11024 ; and the same is true of all real estate mort- gages executed prior to July 1, 1911. This distinction is important as limiting the class of property from which debts can be deducted. (See Sec. 13.) An executory contract for the sale of land is deemed a mortgage if the vendee takes possession. Ann. Stat., Sec. 11411. Mortgages held by building and loan associations are expressly exempt. Ann. Stat., Sec. 3818. Sec. 13. Commercial Paper. Taxable. (Ann. Stat., Sec. 11024.) Deduction of debts is allowed from credits (5 Neb. 561; 70 Neb. 529; 73 Neb. 453) ; and from nothing else (32 Neb. 834). The defi- 116 INVESTMENT SECURITIES nition of credits is somewhat confusing. It was held in 73 Neb. 453, that notes and mortgages representing money loaned or invested are not credits. This was af- firmed in 81 Neb. 209, where, however, the court held that a note secured by a purchase-money mortgage was a credit. In short, in allowing deduction of debts from notes, the practice seems to be con- fined to cases where there has been a sale of property. As to whether bank deposits are treated as credits, the cases in 14 Neb. 144 and 79 Neb. 153 appear to be in conflict. It is possible that a distinction exists between different kinds of deposits; if not, none of them are credits. BANK DEPOSITS. Sees. - ' 14. Deposits in National Banks. 15. Deposits in Nebraska Banks. 16. Deposits in Nebraska Savings Banks. 17. Deposits in Banks Located Outside Nebraska. Taxable. (Ann. Stat., Sees. 10903, 10927, 11024.) NEVADA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but the bank pays the tax for the holder and is liable therefor. (Revised Laws of Nevada, 1912, Sees. 3820, 3824.) Deductions are allowed for real estate owned by the bank. (R. L. (1912), Sees. 3790, 3820.) (b) Nevada banks. Same as national banks. (c) Banks of other states and countries. Same as national banks if located in the state. If located elsewhere, taxable. (R. L. (1912), Sees. 3621, 3622, 3629.) (d) Building and loan associations. Treated like other business corporations. (See Sees. 2-5.) Public Service Corporation Stocks. Insurance Corporation Stocks. Manufacturing Corporation Stocks. 5. Other Business Corporation Stocks. [117] 118 INVESTMENT SECURITIES (a) Nevada corporations. (b) Corporations other than Nevada corporations. Exempt if the entire capital of the corpora- tion is invested in property which is as- sessed or if the capital is assessed. (R. L. (1912), Sec. 3629.) Otherwise taxable. (R. L. (1912), Sees. 3621, 3622.) NOTE. In practice shares would seem to be exempt to the holder if the corporation does business and has an office in Nevada; otherwise taxable. Sec. 6. Unincorporated Association Stocks. Same as Sees. 2-5. BONDS. Secs.^ Sec. 7. United States Bonds. Exempt. (See p. 11.) 8. Nevada State Bonds. 9. Nevada Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (R. L. (1912), Sees. 3621, 3622.) EXEMPT AND TAXABLE NEVADA 119 NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the land is located in Ne- vada or elsewhere. (R. L. (1912), Sees. 3621, 3622; State v. Carson Sav- ings Bank, 17 Nev. 146.) NOTE. By Acts 1911, Ch. 170 (R. L. (1912), Sees. 3786-3790 inclusive), a different method was provided for taxing mortgages of Nevada real estate, from that adopted for foreign mortgages. This enactment, how- ever, was repealed by Acts of the Special Session of 1912, chapter 8. All mortgages, therefore, are now taxable as " money at interest," under sections 3621 and 3622, supra, the language of which is broad enough to include them all. Sec. 13. Commercial Paper. Taxable. (R. L. (1912), Sees. 3621, 3622.) NOTE. The taxpayer is assessed on his unsecured credits only for the balance after deducting the sum of all unsecured debts owing by him (R. L. (1912.), Sec. 3622). No deduction whatever is allowed from credits secured by mortgage. (Drexler v. Tyrrell, 15 Nev. 114.) 120 INVESTMENT SECURITIES DEPOSITS. Sees. f 14. Deposits in National Banks. 15. Deposits in Nevada Banks. 16. Deposits in Nevada Savings Banks. 17. Deposits in Banks Located Outside Nevada. Taxable. (R. L. (1912), Sees. 3621, 3622.) NEW HAMPSHIRE. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but deduction is made for real estate owned by the bank. (P. S., Ch. 65, Sec. 1.) (b) New Hampshire banks. Shares in Savings Banks and Trust Com- panies are exempt. (P. S., Ch. 65, Sec. 12.) Shares in other banks are taxable like those of National Banks. (See Sec. 1 (a).) (c) Banks of other states and countries. Exempt in practice; in theory taxable except in so far as the stock or the property represented by it is taxed in the towns or states where the corporation is located. (See note under Sec. 2.) (P. S., Ch. 55, Sec. 7 (3).) (d) Building and loan associations. Exempt in practice. (P. S., Ch. 65, Sec. 12; Acts 1903, Ch. 126.) Sec. 2. Public Service Corporation Stocks. (a) New Hampshire corporations. Exempt in practice; in theory taxable except in so far as corporate estate or property [121] 122 INVESTMENT SECURITIES is taxed directly to the corporation. (See next note.) (P. S., Ch. 55, Sec. 7 (2) ; Ch. 169 of 1911, Sec. 26, repealing P. S., Ch. 64, Sec. 12.) (b) Corporations other than New Hampshire corporations. Exempt in practice; in theory taxable except in so far as the stock or property repre- sented by it is taxed in the towns or states where the corporation is located. (See note.) (P. S., Ch. 55, Sec. 7 (3).) NOTE. The New Hampshire assessors presume that all property owned by corporations is taxed to its full value, whether located within or without the state. It would, therefore, be regarded as double taxation, forbidden by the statute, to place a tax on the share of stock whose value depends on the value of prop- erty already fully taxed. Kimball v. Milford, 54 N. H. 406. And in practice neither foreign nor do- mestic stock is taxed. Sec. 3. Insurance Corporation Stocks. (a) New Hampshire corporations. Exempt in practice. (See note after Sec. 2.) Stock in fire insurance companies is also specifically exempt. (P. S., Ch. 65, Sees. 8-12.) (b) Corporations other than New Hampshire corporations. Exempt in practice. (See note after Sec. 2.) EXEMPT AND TAXABLE NEW HAMPSHIRE 123 Sec. 4. Manufacturing Corporation Stocks. (a) New Hampshire corporations. Exempt in practice. (See note after Sec. 2.) They may be also specifically exempt by vote of town in which corporation is located. (P. S., Ch. 55, Sec. 11, as amended by Acts 1909, Ch. 166.) (b) Corporations other than New Hampshire corporations. Exempt in practice. (See note after Sec. 2.) Sec. 5. Other Business Corporation Stocks. (a) New Hampshire corporations. Exempt in practice. (See note after Sec. 2.) (b) Corporations other than New Hampshire corporations. Exempt in practice. (See note after Sec. 2.) Sec. 6. Unincorporated Association Stocks. Exempt. (Kimball v. Milford, 54 N. H. 406.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. New Hampshire State Bonds. They are usually tax exempt by statute au- thorizing the issue, but if not so exempt are taxable. (But see note after Sec. 17.) (P. S., Ch. 55, Sec. 7 (1).) 124 INVESTMENT SECUKITIES Sec. 9. New Hampshire Municipal Bonds. Taxable. (But see note after Sec. 17.) Town, city, precinct, or village district bonds (not county) may be exempt by special vote of the municipality when held by a citizen thereof. Applies to issues since 1907 only. (P. S., Ch. 55, Sec. 7 (1) ; Acts 1907, Ch. 55.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (But see note after Sec. 17.) (P. S., Ch. 55, Sec. 7 (1). Sec. 11. Corporation Bonds. Taxable. (But see note after Sec. 17.) (P. S., Ch. 57, Sec. 7 (1).) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt if secured by New Hampshire realty at a rate of interest not exceeding 5 per cent.; otherwise taxable. (But see note after Sec, 17.) (Acts 1911, Ch. 83.) Sec. 13. Commercial Paper. Taxable. (But see note after Sec. 17.) (Acts 1911, Ch. 83.) EXEMPT AND TAXABLE NEW HAMPSHIRE 125 BANK DEPOSITS. Sec. 14. Deposits in National Banks. Taxable. (But see note after Sec. 17.) (Acts 1911, Ch. 83.) Sec. 15. Deposits in New Hampshire Banks. Exempt. (P. S., Ch. 65, Sc. 12.) Sec. 16. Deposits in New Hampshire Savings Banks. Exempt. (P. S., Ch. 65, Sec. 12; Acts 1911, Ch. 194.) Sec. 17. Deposits in Banks Located Outside New Hampshire. Taxable. (But see next note.) (P. S., Ch. 55, Sec. 7, Subd. 5, as amended by Acts 1911, Ch. 83.) NOTE. All obligations due the taxpayers are taxed under a statute in which they are referred to as in- cluded in the phrase " money on hand or at in- terest more than the owner pays interest for." Under this the taxpayer may deduct the total of his interest- bearing debts from the total of obligations due him, and in practice he may even deduct it from the value of such few stocks as remain taxable. (P. S., Ch. 55, Sec. 5, as amended by Acts 1911, Ch. 83.) NEW JERSEY. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable. Deduction is allowed for bank's realty and nontaxable securities, and debts owing by the shareholder to resi- dents, if unsecured by realty. (Tax Act of 1903, Sec. 17, as amended by P. L. 1905, p. 382; P. L. 1905, p. 457; Tax Act of 1903, Sec. 10, as amended by P. L. 1904, p. 238; Tax Act of 1903, Sec. 13 (P. L. 1903, p. 401); Lip- pincott v. Lippincott, 75 N. J. L. 795 (1907).) (b) New Jersey state banks. Same as national banks. This does not in- clude shares in New Jersey trust com- panies, which are exempt. (Tax Act of 1903, Sec. 3 (5) (P. L. of 1903, p. 394) ; Sec. 18 (P. L. 1903, p. 405). See Newark v. Tunis, 81 N. J. L. 45 (1911).) (c) Banks of other states and countries. Taxable, unless a tax has been paid on such stock or the property represented by it within twelve months to such other state or sovereignty. (Tax Act of 1903, Sec. 2 (P. L. 1903, p. 394); Sec. 3 (1) (P. L. 1903, p. 394). (Trenton v. Standard Fire Ins. Co., 76 N. J. L. 79 (1908).) [126] EXEMPT AND TAXABLE NEW JERSEY 127 (d) Building and loan associations. Exempt if organized under the laws of New Jersey. (Tax Act of 1903, Sec. 3 (5) (P. L. 1903, p. 394); Sec. 16 (P. L. 1903, p. 404). State, W. B. & L. Ass'n, pros. v. Hornbaker, 41 N. J. L. 519 (1879).) Sec. 2. Public Service Corporation Stocks. (a) New Jersey corporations. Exempt. (P. L. 1888, p. 269; Tax Act of 1903, Sec. 3 (5) (P. L. 1903, p. 394), Sec. 3 (8) (P. L. 1903, p. 394) ; P. L. 1906, pp. 121, 644 and 648.) (b) Corporations other than New Jersey corporations. Exempt if doing business in New Jersey; otherwise taxable unless tax has been paid within twelve months on the stock or property represented by it to the for- eign jurisdiction. (P. L. 1888, p. 272; Tax Act of 1903, Sec. 3 (1) (P. L. 1903, p. 394) ; P. L. 1906, p. 644.) NOTE. Only railroad, street railway, and canal companies are included under this classification ; other public utilities come under the general tax act. r 3. Insurance Corporation Stocks. Secs.J 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks, (a) New Jersey corporations. Exempt. (Tax Act of 1903, Sec. 3 (5) (P. L. 1903, p. 394); Sec. 16 (P. L. 1903, p. 404) ; Sec. 18 (P. L. 1903, p. 405); P. L. 1906, p. 148; P. L. 1908, p. 720.) 128 INVESTMENT SECURITIES (b) Corporations other than New Jersey corporations. Taxable unless tax has been paid on stock or property represented by it to foreign jurisdiction within twelve months. (Tax Act of 1903, Sec. 2 (P. L. 1903, p. 394), Sec. 3 (1) (P. L. 1903, p. 394) ; Trenton v. Standard Fire Ins. Company, 76 N. J. L. 79 (1908).) Sec. 6. Unincorporated Association Stocks. No express statute except in the case of rail- road and canal companies (P. L. 1888, pp. 269 and 284) but probably exempt under wording of the decisions. (Jersey City Gaslight Co. v. Jersey City, 46 N. J. L. 194 (1884); Trenton v. Standard Fire Ins. Co., 77 N. J. L. 757 (1909).) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. New Jersey State Bonds. Exempt. (Tax Act of 1903, Sec. 3 (1) (P. L. 1903, p. 394).) Sec. 9. New Jersey Municipal Bonds. Exempt. (Tax Act of 1903, Sec. 3 (1) (P. L. 1903, p. 394).) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Tax Act of 1903, Sec. 2 (P. L. 1903, p. 394).) EXEMPT AND TAXABLE NEW JERSEY 129 Sec. 11. Corporation Bonds. Taxable unless secured by New Jersey realty or in case of bonds of a railroad or canal company operating in New Jersey which does not claim an exemption for the debt represented thereby. (P. L. 1888, pp. 272 and 273; Tax Act of 1903, Sec. 2 (P. L. 1903, p. 394), Sec. 10 (P. L. 1903, p. 400), as amended by P. L. 1904, p. 238.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt if realty is in New Jersey; taxable otherwise. (Tax Act of 1903, Sec. 2 (P. L. 1903, p. 394); Sec. 10 (P. L. 1903, p. 400), as amended as aforesaid; Hartshorne v. Avon, 75 N. J. L. 407 (1907).) But mortgages on exempt realty are them- selves exempt. (P. L. 1905, p. 308.) Sec. 13. Commercial Paper. Taxable, except in case of paper of a railroad or canal company operating in New Jer- sey which does not claim an exemption for the debt represented thereby. (P. L. 1888, pp. 272, 273; Tax Act of 1903, Sec. 2 (P. L. 1903, p. 394).) 9 130 INVESTMENT SECUEITIES BANK DEPOSITS. Sec. 14. Deposits in National Banks. Taxable. (Tax Act of 1903, Sec. 2 (P. L. 1903, p. 394).) Sec. 15. Deposits in New Jersey Banks. Taxable. (Same as Sec. 14.) Sec. 16. Deposits in New Jersey Savings Banks. Probably exempt. (Tax Act cf 1903, Sec. 2 (P. L. 1903, p. 394); Sec. 3 (1) (P. L. 1903, p. 394).) Sec. 17. Deposits in Banks Located Outside New Jersey. Taxable, unless the tax has been paid thereon to the foreign jurisdiction within twelve months, in which case they are exempt. (Tax Act of 1903, Sec. 2; Sec. 3, Subd. 1.) NOTE 1. In the case of all assessments on personalty, there is a deduction for the taxpayer's debts owing to residents of New Jersey, if unsecured by realty. (Tax Act of 1903, Sec. 13 (P. L. 1903, p. 401).) NOTE 2. The tax on foreign stocks and bonds seems not to be assessed in practice. NEW MEXICO. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the shareholders, without deduc- tion for real estate, which is accordingly exempt. (Laws 1907, Ch. 103, Sees. 2 and 3, superseding Comp. Laws, Sec. 259.) In general the tax is paid for the shareholder by the bank. (Laws 1907, Ch. 103, Sec. 2.) But a national bank cannot be made primarily liable for such taxes unless it lists the shares voluntarily. (5 N. M. 664.) (b) New Mexico banks. Taxable to the holder, but the bank pays the tax for the holder. (Laws 1907, Ch. 103, Sec. 2.) No deduction for real estate. (Session Laws of 1907, Ch. 103, Sec. 3, superseding Comp. Laws, Sec. 259.) (c) Banks of other states and countries. Taxable. (Comp. Laws, Sees. 4018, 4019, 4032, and by inference from Sec. 4025.) [131] 132 INVESTMENT SECURITIES (d) Building and loan associations. Taxable. (Comp. Laws, Sees. 4018, 4019, 4032; 10 N. M. 337.) Sec. 2. Public Service Corporation Stocks. (a) New Mexico corporations. Exempt in the hands of the holder if all the property of the corporation is in the state; otherwise taxable, except that rail- road stock is exempt during a six-year " building period." (See notes 1 and 2 after Sec. 6.) (Comp. Laws, Sees. 1761, 4018, 4025, 4032.) (b) Corporations other than New Mexico corporations. In effect taxable. (See notes 1 and 2 after Sec. 6.) (Comp. Laws, Sees. 4018, 4019, 4032.) Sec. 3. Insurance Corporation Stocks. (a) New Mexico corporations. Exempt if the entire property or capital of the corporation is assessed in the state; otherwise taxable. (See note 1 after Sec. 6.) (Comp. Laws, Sees. 4018, 4019, 4025, 4032.) (b) Corporations other than New Mexico corporations. Same as Sec. 3 (a). EXEMPT AND TAXABLE NEW MEXICO 133 Sec. 4. Manufacturing Corporation Stocks. (a) New Mexico corporations. Shares are exempt as such if the corporate property is taxed in the state. (See notes 1 and 2 after Sec. 6.) (Comp. Laws, Sec. 4025.) When the corporate property is outside the state, the shares are taxable. (Comp. Laws, Sees. 4018, 4019, 4032.) (b) Corporations other than New Mexico corporations. Same as Sec. 4 (a). Sec. 5. Other Business Corporation Stocks. (a) New Mexico corporations. Same as Sec. 4. (b) Corporations other than New Mexico corporations. Same as Sec. 4. Sec. 6. Unincorporated Association Stocks. Same as Sees. 4 and 5. (Comp. Laws, Sees. 4018, 4019, 4025, 4032; 10 N. M. 337.) NOTE 1. Compiled Laws of New Mexico, Sec. 4025, provides that all corporations shall be taxed on their property within the state, but that they may charge these taxes to the shareholders. The provision, if acted upon by the corporations, would have the effect of taxing each shareholder to the extent of his hold- ings, and would thereby in practice nullify the fur- ther clause of Sec. 4025, " The owner or holder of stocks in any firm or corporation, the entire capital or 134 INVESTMENT SECUKITIES property of which is assessed, must not be assessed individually for such stocks." The provision, how- ever, is not mandatory, but directory. NOTE 2. The following enactments relate to public service and manufacturing corporations, either do- mestic or foreign, doing business in the state: Const., Sec. 121; Comp. Laws, Sees. 1756, 1758, 1761, 3880, 3881; Session Laws of 1907, Ch. 12. These enact- ments, while differing in detail, provide generally that all such companies within the state shall be exempt from taxation for a period of six years after the com- mencement of operation. In 3 N. M. 126, it was held that this exemption was valid under the constitution, and that it extended to and included the capital stock. This is .an exception to the general rule regarding public service com- panies and corporations in general. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. New Mexico State Bonds. Exempt. (Const., Sec. 120.) Sec. 9. New Mexico Municipal Bonds. Exempt. (Const., Sec. 120.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Comp. Laws, Sees. 4018, 4019, 4032.) EXEMPT AND TAXABLE NEW MEXICO 135 Sec, 11. Corporation Bonds. Taxable. (Same citations.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in New Mexico or elsewhere. (Comp. Laws, Sees. 4018, 4019, 4032; 10 N. M. 337.) Sec. 13. Commercial Paper. Taxable. (Comp. Laws, Sees. 4018, 4019, 4025, 4032.) But deduction of debts from credits is allowed. (Comp. Laws, Sec. 4029.) BANK DEPOSITS. Sees. r 14. Deposits in National Banks. 15. Deposits in New Mexico Banks. 16. Deposits in New Mexico Savings Banks. 17. Deposits in Banks Located Outside New Mexico. Taxable. (Comp. Laws, Sees. 4018, 4019, 4032.) NEW YORK. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but the bank pays the tax for the stockholder. (Consolidated Laws, Ch. 60, Sees. 13 and 24.) (b) New York banks. Taxable to the holder, but the bank pays the tax for the stockholder. (C. L., Ch. 60, Sees. 13 and 24.) NOTE. This does not include trust companies, which are moneyed corporations, not banks, and are exempt. (C. L., Ch. 60, Sees. 188 and 205; Mercantile Bank v. New York, 121 U. S. 138 (1887).) (c) Banks of other states and countries. Exempt. (C. L., Ch. 60, Sec. 4 (16) ; 4 Hun, 595, (1875).) (d) Building and loan associations. (Under the name of " Co-operative Savings and Loan Associations " and " Building and Lot Associations." C. L., Ch. 2, Sec. 2.) Exempt. (C, L., Ch. 2, Sec. 227; Ch. 60, Sec. 4 (14).) [136] EXEMPT AND TAXABLE NEW YORK 137 f 2. Public Service Corporation Stocks. IS, Insurance Corporation Stocks. >ecs, , 4 Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. (a) New York corporations. (b) Corporations other than New York corporations. All exempt. (C. L., Ch. 60, Sec. 4 (16); Sees. 12, 27 and 32; 4 Hun, 595 (1875).) Sec. 6. Unincorporated Association Stocks. Taxable. (C. L., Ch. 29, See. 2; 133 N. Y. 279 (1892) ; C. L., Ch. 60, Sec. 2 (5); Sec. 3.) Under 172 N. Y. 575 (1902), such shares are personalty, whether representing real or personal property. (See note at end of Sec. 17.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) NOTE. By the " Secured Debt Law " (Laws 1911, Ch. 802), the following instruments or obligations are exempt if they have stamps affixed showing that a tax of one-half per cent, of the face value has been paid the state comptroller: any bond, note, or debt secured by mortgage of real property recorded anywhere ex- cept in New York; any bond, note, written or printed 138 INVESTMENT SECUKITIES obligation forming part of a series secured by mort- gage or trust deed of realty or personalty recorded anywhere except in New York; any bond, note, writ- ten or printed obligation forming part of a series secured by deposit of collateral; any bond, debenture, or note forming part of a series not payable within one year, no one of which is issued for an amount exceeding one thousand dollars, and which are not secured by collateral. This statute would seem to include practically all bonds or notes except short time unsecured obligations and those secured by realty mortgages recorded in New York. The latter, however, by another statute (see Sec. 12 below) are exempt from taxation by the terms of the act imposing a recording tax on mort- gages of New York real estate. The following sec- tions therefore should be taken in connection with this note and are not meant to cover obligations com- ing under the Secured Debt Law. Furthermore, the note after Sec. 17, concerning deductions for debts, should also be borne in mind. Sec. 8. New York State Bonds. Taxable, except highway, canal, and terminal bonds. (See note after Sec. 7.) (C. L., Ch. 60, Sees. 2 (5), 3 and 4 (6); Laws 1911, Ch. 746.) Sec. 9. New York Municipal Bonds. Exempt. (See note after Sec. 7.) (C. L., Ch. 24, Sec. 8; Ch. 60, Sec. 4 (6).) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (See note after Sec. 7.) (C. L., Ch. 60, Sec. 2 (5) ; Sec. 3.) EXEMPT AND TAXABLE NEW YORK Sec. 11. Corporation Bonds. Taxable. (See note after Sec. 7.) (C. L., Ch. 60, Sees. 2 (5), 3; 4 Hun, 595 (1875); 138 N. Y. 543 (1893).) Except if secured by realty mortgage re- corded in New York since July 1, 1906, exempted by payment of one-half per cent, of face value, which fact is stamped on the face of the bonds. (See Sec. 12.) (C. L., Ch. 60, Sees. 259 and 264, as amended by Laws 1910, Ch. 601.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. (a) Mortgages of New York real estate. Exempt if made or recorded after July 1, 1906; or if mortgage tax of one-half per cent, of the amount remaining due since July 1, 1906, has been paid. (C. L., Ch. 60, Sees. 251, 253, 254, 259, 264, as amended by Laws 1910, Ch. 601.) Otherwise taxable. (See note after Sec. 7.) (C. L., Ch. 60, Sees. 2 (5), 3; 121 App. Div. 559 (1907).) (b) Mortgages of real estate outside New York. Exempt on payment of fee of one-half per cent, on the amount secured. (See note after Sec. 7.) (Acts of 1911, Ch. 802.) 140 INVESTMENT SECURITIES Sec. 13. Commercial Paper. Taxable. (See note after Sec. 17.) (C. L., Ch. 60, Sees. 2 (5), 3.) BANK DEPOSITS. Sec. 14. Deposits in National Banks. Taxable. (See note after Sec. 17.) (C. L., Ch. 60, Sees. 2 (5), 3; 150 N. Y. 37 (1896).) Sec. 15. Deposits in New York Banks and Trust Companies. Taxable. (See note after Sec. 17.) (C. L., Ch. 60, Sees. 2 (5), 3; Matter of Houdayer, 150 N. Y. 37 (1896).) Sec. 16. Deposits in New York Savings Banks. Exempt. (C. L., Ch. 60, Sec. 4 (14); Heermance v. Dederick, 158 N. Y. 414 (1899).) Sec. 17. Deposits in Banks Located Outside New York. Deposits in savings banks are exempt. (C. L., Ch. 60, Sec. 4, Subd. 14; 158 N. Y. 414.) All other foreign deposits are taxable. (C. L., Ch. 60, Sees. 2 (5), 3.) NOTE. In making up the assessment-roll, the just debts owing are deducted from the taxable personal property. (C. L., Ch. 60, Sec. 21 (4), and also Sec. 6.) This applies to all taxable personalty except bank stock. NORTH CAROLINA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable. (P. L. 1911, Ch. 50, Sec. 42.) (b) North Carolina banks. Taxable, including savings bank shares. (P. L. 1911, Ch. 50, Sec. 42.) NOTE. State taxes are paid by the bank. Local taxes are paid by resident shareholders, but the bank pays the local taxes for nonresident shareholders and deducts the same from their dividends. (P. L. 1911, Ch. 50, Sec. 42.) (c) Banks of other states and countries. Taxable. (P. L. 1911, Ch. 50, Sec. 41.) (d) Building and loan associations. Exempt in the hands of the holder as to both foreign and domestic associations doing business in North Carolina. The asso- ciation pays the tax, and deduction is made for loans to the shareholders. (P. L. 1911, Ch. 50, Sees. 44, 47.) Sec. 2. Public Service Corporation Stocks, (a) North Carolina corporations. Exempt. (P. L. 1911, Ch. 50, Sees. 48-53, inc., 56, 61-64.) [141] 142 INVESTMENT SECURITIES (b) Corporations other than North Carolina corporations. Exempt if doing business in the state, other- wise taxable. (P. L. 1911, Ch. 50, Sees. 48-53, inc., 56, 61-64.) f 3. Insurance Corporation Stocks. Sees, -j 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. (a) North Carolina corporations. Exempt. (P. L. 1911, Ch. 46, Sec. 67; Ch. 50, Sec. 41.) (b) Corporations other than North Carolina corporations. Taxable. (P. L. 1911, Ch. 50, Sec. 41.) Sec. 6. Unincorporated Association Stocks. Same as Sees. 3, 4, and 5. (Const., Art. VIII, Sec. 3.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. North Carolina State Bonds. Issues of state bonds are usually exempt, by the terms of the statute authorizing them, from all state and local taxes, including income tax. (See note 3 after Sec. 17.) (See P. L. 1909, Ch. 399.) EXEMPT AND TAXABLE NORTH CAROLINA 143 Sec. 9. North Carolina Municipal Bonds. Taxable, except bonds and coupons issued by drainage districts under P. L. 1909, Ch. 442, Sec. 34, which are exempt during 1911-1925, exclusive. (P. L., 1911, Ch. 177.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (P. L. 1911, Ch. 50, Sec. 41.) Sec. 11. Corporation Bonds. Taxable. (P. L. 1911, Ch. 50, Sec. 41.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the land is in the state or elsewhere. (P. L. 1911, Ch. 50, Sec. 41.) Sec. 13. Commercial Paper. Taxable. (P. L. 1911, Ch. 50, Sec. 41.) 144 INVESTMENT SECURITIES BANK DEPOSITS. Sees. 14. Deposits in National Banks. 15. Deposits in North Carolina Banks. 16. Deposits in North Carolina Savings Banks. 17. Deposits in Banks Located Outside North Carolina. Taxable. (P. L. 1911, Ch. 50, Sec. 41.) NOTE. 1. Certificates of deposit in any bank, whether within or without the state, are expressly taxable. (P. L. 1911, Ch. 50, Sec. 41.) NOTE 2. The taxpayer may deduct the amount of debts he owes from the amount of credits due him including mortgages, -bonds, notes, deposits, etc. (P. L. 1911, Ch. 50, Sec. 41.) NOTE 3. Under the constitution of North Carolina no income tax can be assessed on incomes from prop- erty otherwise taxed. There is such a tax now of 1 per cent., and it is levied on income derived from securities above listed as exempt. NORTH DAKOTA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but deduction is al- lowed for real estate owned by the bank. The bank pays the tax for the holder. (Pol. C., Sees. 1508, 1510.) (b) North Dakota banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Pol. C., Sees. 1483, 1496, Subd. 22.) (d) Building and loan associations. Taxable whether foreign or domestic. (Const., Sec. 144; Pol. C., Sec. 1483.) C 2. Public Service Corporation Stocks. i 3. Insurance Corporation Stocks. Sees -s I 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. (a) North Dakota corporations. Exempt. (Const., Sees. 176 and 179; Pol. C., Sees. 1481, 1487, 1495, 1496, 1502, 1503; Acts of 1907, Ch. 216.) (b) Corporations other than North Dakota corporations. Taxable. (Pol. C., Sees. 1483, 1496, Subd. 23.) 10 C 145 1 146 INVESTMENT SECUKITIES Sec. 6. Unincorporated Association Stocks. Probably exempt, but such associations are uncommon in North Dakota. BONDS. Sees.- Sec. 7. United States Bonds. Exempt. (Seep. 11.) 8. North Dakota State Bonds. 9. North Dakota Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Pol. C., Sees. 1483, 1487, 1496, Subd. 21.) NOTES. Sec. 13. Notes Secured by Real Estate Mortgages. Taxable whether the land is in North Dakota or elsewhere. (Pol. C., Sees. 1480, 1483.) Sec. 13. Commercial Paper. Taxable. (Pol. C., Sees. 1480, 1483, 1496, Subd. 20.) Sees. EXEMPT AND TAXABLE NORTH DAKOTA 147 BANK DEPOSITS. '14. Deposits in National Banks. 15. Deposits in North Dakota Banks. 16. Deposits in North Dakota Savings Banks. 17. Deposits in Banks Located Outside North Dakota. Taxable. (Pol. C., Sees. 1480, 1483.) OHIO. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but the bank may pay the tax and deduct the amount from the dividends. (General Code 1910, Sees. 5324, 5328, 5408, 5672 and 5673 as amended by Laws of 1911, p. 91.) (b) Ohio banks. Same as national banks. (See citations under Sec. 1 (a).) (c) Banks of other states and countries. Taxable. (Gen. Code 1910, Sec. 5328.) (d) Building and loan associations. Taxable, except those on which loans have been made, which are exempt. (Gen. Code, Sec. 9675.) r2. Public Service Corporation Stocks. Sees ' ^' * nsurance Corporation Stocks. I 4. Manufacturing Corporation Stocks. I 5. Other Business Corporation Stocks, (a) Ohio corporations. Exempt. (Gen. Code, Sec. 192.) [148] EXEMPT AND TAXABLE OHIO 149 (b) Corporations other than Ohio corporations. If two-thirds of the property of the corpora- tion is taxed in Ohio and the rest some- where else, the shares are exempt. (Hubbard v. Brush, 61 Ohio St. 252; Gen. Code 1910, Sec. 192.) Otherwise taxable. (Gen. Code 1910, Sees. 5324, 5328.) Sec. 6. Unincorporated Association Stocks. Shares in unincorporated associations are treated in the same manner as shares of stock in corporations. (Gen. Code 1910, Sees. 5324, 5328, 5372; State v. Adams Express Co., 2 N. P. 98, 101.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Ohio State Bonds. Exempt. (Const., Art. XII, Sec. 2.) Sec. 9. Ohio Municipal Bonds. Exempt. (Const., Art. XII, Sec. 2.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Gen. Code 1910, Sees. 5323, 5328.) 150 INVESTMENT SECUKITIES Sec. 11. Corporation Bonds. Taxable, as credits or moneys. (Gen. Code 1910, Sees. 5327, 5328.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Ohio or elsewhere. (Gen. Code 1910, Sees. 5325, 5328.) Sec. 13. Commercial Paper. Taxable, as credits or moneys. (Gen. Code 1910, Sees. 5327, 5328.) BANE DEPOSITS. Sees. f 14. Deposits in National Banks. 15. Deposits in Ohio Banks. 16. Deposits in Ohio Savings Banks. 17. Deposits in Banks Located Outside Ohio. Taxable. (Gen. Code 1910, Sees. 5327, 5328.) NOTE 1. Set-off of debts is allowed against notes and accounts receivable, but not against stock or bonds or money on deposit in banks subject to with- drawal on demand. (Gen. Code 1910, Sec. 5327.) NOTE 2. In September, 1912, Ohio adopted a consti- tutional amendment which requires that laws be passed taxing at uniform rates all stock and bonds except Ohio state and municipal bonds previously issued which must remain exempt. This will materially change the foregoing summary when the legislation is enacted. OKLAHOMA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the bank, but deductions are al- lowed for real estate owned by the bank. (Comp. Laws, Sees. 7545, 7558, 7580.) There may be doubt as to the constitutionality of this form of tax. (b) Oklahoma banks. Same as national banks. (Comp. Laws, Sees. 7545, 7580, 7583.) (c) Banks of other states and countries. Taxable. (Comp. Laws, Sees. 7541, 7545, 7551, 7562.) (d) Building and loan associations. Exempt. (Comp. Laws, Sees. 1511, 7542.) NOTE. These sections confine the exemptions to domestic companies doing all their business in the state; but this practically includes all shares of this sort. Public Service Corporation Stocks. g 13. Insurance Corporation Stocks. ' A Manufacturing Corporation Stocks. Other Business Corporation Stocks. [151] 152 INVESTMENT (a) Oklahoma corporations. Exempt. (Comp. Laws, Sees. 7551, 7558.) (b) Corporations other than Oklahoma corporations. Exempt if the corporation does business in the state and therefore pays a tax on its capital; otherwise taxable. (Comp. Laws, Sees. 7541, 7545, 7546, 7551, 7558, 7562.) Sec. 6. Unincorporated Association Stocks. Probably would be treated like stock in cor- porations, but such shares are unknown in Oklahoma. If treated as partnership their property will be taxed to the firm and not to individual partners. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Oklahoma State Bonds. Generally exempt by special act; otherwise taxable. (Comp. Laws, Sees. 7545, 7551, 7562.) 9. Oklahoma Municipal Bonds. I 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Comp. Laws, Sees. 7545, 7551, 7562.) EXEMPT AND TAXABLE OKLAHOMA 153 NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the land is located in Okla- homa or elsewhere. (Comp. Laws, Sees. 7541, 7545, 7551, 7562.) But mortgages held by domestic building and loan associations, given by residents of the state upon domestic real estate, are expressly exempt. (Comp. Laws, Sees. 1512, 7542.) Sec. 13. Commercial Paper. Taxable. (Comp. Laws, Sees. 7541, 7545, 7551, 7562.) BANK DEPOSITS. Sees. . 14. Deposits in National Banks. 15. Deposits in Oklahoma Banks. 16. Deposits in Oklahoma Savings Banks. 17. Deposits in Banks Located Outside Oklahoma. Taxable. (Comp. Laws, Sees. 7541, 7545, 7546.) NOTE. There is a general income tax in Oklahoma <*i~ income from all sources. (Comp. Laws, Sees. 7743-7751 inc.) OREGON. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but a deduction is allowed for invest- ment in real estate by the bank. (L. 0. L., Sees. 3568, 3569, 3571.) (b) Oregon banks. Same as national banks. (L. 0. L., Sees. 3568, 3569, 3571, 4563, 4564.) (c) Banks of other states and countries. Taxable. (L. 0. L., Sees. 3553, 3572.) (d) Building and loan associations. Taxable. (L. 0. L., Sec. 3568.) Sec. 2. Public Service Corporation Stocks. (a) Oregon corporations. Taxable. (Gen. Laws of 1907, Ch. 268, Sec. 1.) (b) Corporations other than Oregon corporations. Same as Sec. 2 (a). [154] EXEMPT AND TAXABLE OREGON 155 Sec. 3. Insurance Corporation Stocks. (a) Oregon corporations. Taxable. (Gen. Laws of 1907, Ch. 268, Sec. 1.) (b) Corporations other than Oregon corporations. Exempt. (L. 0. L., Sees. 4634, 4650, 4673.) Sec. 4. Manufacturing Corporation Stocks. (a) Oregon corporations. Taxable. (Gen. Laws of 1907, Ch. 268, Sec. 1; L. 0. L., Sec. 3551.) (b) Corporations other than Oregon corporations. Same as Sec. 4 (a). Sec. 5. Other Business Corporation Stocks. (a) Oregon corporations. Same as Sec. 4. (b) Corporations other than Oregon corporations. Same as Sec. 4. Sec. 6. Unincorporated Association Stocks. Same as Sec. 4. (L. 0. L., Sec. 3551.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) 156 INVESTMENT SECURITIES Sees. < r 8. Oregon State Bonds. 9. Oregon Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. L 11. Corporation Bonds. Taxable. (L. 0. L., Sec. 3553.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Oregon or elsewhere. (L. 0. L., Sees. 3553, 6034; 8 Ore. 337; 11 Ore. 482.) Sec. 13. Commercial Paper. Taxable. (L. 0. L., Sec. 3553.) DEPOSITS. Sees. . " 14. Deposits in National Banks. 15. Deposits in Oregon Banks. 16. Deposits in Oregon Savings Banks. 17. Deposits in Banks Located Outside Oregon. Taxable. (L. 0. L., Sec. 3553.) PENNSYLVANIA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder on their market value at the rate of four mills but the bank pays the tax for the holder. (Purdon, Sees. 45-55, inclusive, 198; Supp. 1912, Sees. 1, 2, and 4.) In assessing the shares, deduction must be al- lowed for all kinds of property owned by the bank which would be exempt in the hands of the individuals, and all other de- ductions allowed to individuals. The bank may, at its option, collect from its shareholders and pay to the state a tax of ten mills on the par value of all its shares, which shall be in lieu of all other taxes except those on real estate. (Purdon, Sees. 46, 54, 55; 94 Pa. 221; 168 Pa. 309; 222 Pa. 293; 11 Dauphin County, 22.) The tax on capital stock, whether collected on the first basis or otherwise, is in lieu of taxes on all personal property owned by the corporation, and this includes bonds and mortgages held by the bank in its own name. But bonds and mortgages held by [157] 158 INVESTMENT SECUKITIES banks or trust companies in trust for in- dividuals are taxable. (Purdon, Supp. 1912, Sec. 7.) (b) Pennsylvania banks. Same as national banks. (See citations under Sec. l(a).) (c) Banks of other states and countries. Taxable. (See citations under Sec. l(a).) (d) Building and loan associations. Taxable at the rate of four mills if sufficiently matured so that the holder is in the posi- tion of a recipient therefrom, but in such case the company pays the tax for the holder. In all other cases the shares are exempt. Though the act of May 22, 1883, P. L. 38, exempting all shares of mutual building and loan associations, has never been expressly repealed, it is believed to be no longer in force. (Purdon, Sees. 43, 261, 262; Supp. 1912, Sees. 3, 25. See, however, 112 Pa. 337.) Sec. 2. Public Service Corporation Stocks. (a) Pennsylvania corporations. Shares are exempt in the hands of the holder, but the corporation pays a tax at a uni- form state rate of five mills on each $100 of value of its stock and deducts it from EXEMPT AND TAXABLE PENNSYLVANIA 159 its dividends, and if these are not suffi- cient may assess the shareholders for the balance. (Purdon, Sees. 28, 29, 30, 31, 36-39, inclusive, 252; Supp. 1912, Sees. 6 and 7.) In assessing the capital stock, only such pro- portion is assessed as represents the en- tire property of the corporation located within the state, including real estate, which is not otherwise taxed, (222 Pa. 319), and from this is deducted the value of U. S. bonds and other tax-exempt prop- erty held by the corporation. (3 Dauphin Co. 130; 198 U. S. 341.) (b) Corporations other than Pennsylvania corporations. If doing business in the state, taxable like Pennsylvania corporations ; otherwise taxable to the holder at the rate of four mills on the dollar of value. (Purdon, Supp. 1912, Sees. 1 and 2; 49 Pa. 519.) Sec. 3. Insurance Corporation Stocks. (a) Pennsylvania corporations. Same as Sec. 2 (a). (Purdon, Sees. 28, 29, 30, 31, 58; Supp. 1909, Sees. 25-31, inclusive; Supp. 1912, Sees. 1 and 2.) But for fire or marine insurance companies the rate is three mills on a dollar of value on capital stock. (b) Corporations other than Pennsylvania corporations. Taxable at the rate of four mills on the dollar of valuation. (Purdon, Supp. 1912, Sees. 1 and 2; 49 Pa. 519.) 160 INVESTMENT SECUKITIES Sec. 4. Manufacturing Corporation Stocks. (a) Pennsylvania corporations. Exempt to the extent of its capital actually and exclusively employed in manufactur- ing in the state, except brewing and dis- tilling corporations, which pay a ten-mill tax; otherwise subject to the same tax as in Sec. 2(a). (Purdon; Supp. 1912, Sec. 8.) (b) Corporations other than Pennsylvania corporations. Same as Sec. 2(b). The special exemption stated in Sec. 4(a) also applies. (Purdon, Supp. 1912, Sees. 1 and 2; 49 Pa. 519.) Sec. 5. Other Business Corporation Stocks. (a) Pennsylvania corporations. Same as Sec. 2 (a). (b) Corporations other than Pennsylvania corporations. Same as Sec. 2(b). Sec. 6. Unincorporated Association Stocks. Same as corporation stocks. (Const., Art. 16, Sec. 13; Purdon, Sec. 30.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Pennsylvania State Bonds. Exempt. (Purdon, Supp. 1912, Sec. 2.) EXEMPT AND TAXABLE PENNSYLVANIA 161 Sec. 9. Pennsylvania Municipal Bonds. Taxable at the rate of four mills on the dollar of value, but the tax is deducted from the interest and paid to the state treasurer by the treasurer of the municipality. (Purdon, Sec. 245; Supp. 1912, Sees. 2, 12; 123 Pa. 626; 129 Pa. 463.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable at the rate of four mills on the dol- lar of value. (Purdon, Supp. 1912, Sec. 2.) >ec. 11. Corporation Bonds. Taxable at the rate of four mills on the dollar of value. The tax is deducted from the interest by the corporation and paid by it to the state. (Purdon, Supp. 1912, Sec. 2.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable to the mortgagee at the rate of four mills on the dollar of value, whether the real estate is in Pennsylvania or else- where. (Purdon, Supp. 1912, Sec. 2.) 11 162 INVESTMENT SECUEITIES Sec. 13. Commercial Paper. Taxable at the rate of four mills on the dollar of value. (Purdon, Supp. 1912, Sec. 2.) But notes discounted or negotiated by banks or trust companies are not taxable. (Purdon, Supp. 1912, Sec. 2.) BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Pennsylvania Banks. 16. Deposits in Pennsylvania Savings Banks. 17. Deposits in Banks Located Outside Pennsylvania. Interest-bearing deposits are taxable, but de- posits subject to check are exempt. (Purdon, Supp. 1912, Sees. 1-4.) RHODE ISLAND. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable at forty cents per $100 of assessed valuation. The tax is assessed to the owner but paid by the bank. Name and address of owner is not a matter of pub- lic record. (P. L. 1912, Ch. 769, Sec. 21.) (b) Rhode Island banks. Except shares in savings banks, taxable at forty cents per $100 of assessed valuation. The tax is assessed to the owner but paid by the bank. (P. L. 1912, Ch. 769, Sec. 21.) (c) Banks of other states and countries. Taxable at forty cents per $100 of assessed valuation. (P. L. 1912, Ch. 769, Sec. 41.) (d) Building and loan associations. Taxable at forty cents per $100 if a Rhode Island association. Shares in foreign as- sociations doing business in Rhode Island are exempt. (P. L. 1908, Ch. 228, Sec. 6.) [163] 164 INVESTMENT SECURITIES Sec. 2. Public Service Corporation Stocks. {(a) Rhode Island corporations, (b) Corporations other than Rhode Island corporations. Exempt if carrying on business for profit in Rhode Island. (P. L. 1912, Ch. 769, Sees. 9, 20, 25, 30; Ch. 57, Sec. 9 of the General Laws of 1909, as amended by Acts 1912, Ch. 769, Sec. 39.) Otherwise taxable at forty cents per $100 of assessed valuation. (P. L. 1912, Ch. 769, Sees. 40, 41.) Sec. 3. Insurance Corporation Stocks. (a) Rhode Island corporations. Taxable at forty cents per $100 of valuation. (P. L. 1912, Ch. 769, Sees. 40, 41.) (b) Corporations other than Rhode Island corporations. Same as 3 (a). Sec. 4. Manufacturing Corporation Stocks. (a) Rhode Island corporations. Same as Sec. 2. (b) Corporations other than Rhode Island corporations. Same as Sec. 2. Sec. 5. Other Business Corporation Stocks. (a) Rhode Island corporations. Same as Sec. 2. '(b) Corporations other than Rhode Island corporations. Same as Seo. 2. EXEMPT AND TAXABLE RHODE ISLAND 165 Sec. 6. Unincorporated Association Stocks. Taxable at forty cents per $100 of valuation. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Rhode Island State Bonds. Exempt by the terms of the statutes under which they are issued. Sec. 9. Rhode Island Municipal Bonds. Taxable at the rate of forty cents per $100 of assessed valuation. (P. L. 1912, Ch. 769, Sec. 41.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable at tEe rate Sf* forty cents per $100 of assessed valuafliolfi. 1 (P. L. 1912, Ch. 769, Sec. 41.) Sec. 11. Corporation Bonds. Bonds of domestic or foreign corporations carrying on business for profit in Rhode Island are exempt. (P. L. 1912, Ch. 769, Sees. 20 and 30.) Other bonds taxable at the rate of forty cents per $100 of assessed valuation. (P. L. 1912, Ch. 769, Sec. 41.) 166 INVESTMENT SECURITIES NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable at the rate of forty cents per $100 of assessed valuation, whether the real es- tate is in Rhode Island or elsewhere'. (P. L. 1912, Ch. 769, Sec. 41.) Sec. 13. Commercial Paper. Taxable at the rate of forty cents per $100 of assessed valuation. (P. L. 1912, Ch. 769, Sec. 41.) BANK DEPOSITS. Sec. 14. Deposits in National Banks. Taxable at the rate of forty cents per $100 of assessed valuation, except participation and savings accounts. (P. L. 1912, Ch. 769, Sec. 41.) Sec. 15. Deposits in Rhode Island Banks. Savings deposits and participation accounts are taxable to the bank at the rate of forty cents per $100 and exempt to the holder; other deposits are taxable to the holder at the same rate. (P. L. 1912, Ch. 769, Sec. 41; G. L., Ch. 39, Sec. 3.) EXEMPT AND TAXABLE RHODE ISLAND 167 Sec. 16. Deposits in Rhode Island Savings Banks. Exempt to the holder. Taxable to the bank at the rate of forty cents per $100. (P. L. 1912, Ch. 769, Sec. 41; G. L., Ch. 39, Sec. 4.) Sec. 17. Deposits in Banks Located Outside Rhode Island. Taxable at forty cents per $100. (P. L. 1912, Ch. 769, Sec. 41.) NOTE. Set-off of debts is allowed against money at interest or on deposit, and against debts due from others. , (P. L. 1912, Ch. 769, Sec. 39 (10th).) SOUTH CAROLINA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to holder, but it is lawful for the bank to pay the tax. (Civ. Code 1902, Sees. 313, 317, 319, and 323.) (b) South Carolina banks. Taxable in the same manner as shares of stock in national banks. (See citations above.) (c) Banks of other states and countries. Taxable. (Civ. Code 1902 Sees. 260, 265, 268, and 271.) NOTE. But if bank is located in this state its shares of stock are taxable in the same manner as those of domestic or national banks. (See citations under Sec. 1 (a).) (d) Building and loan associations. There is no statute taxing the shareholder and in practice he is exempt. Sec. 2. Public Service Corporation Stocks, (a) South Carolina corporations. Exempt. (Civ. Code 1902, Sees. 266, 276-9, 288-291.) [168] EXEMPT AND TAXABLE SOUTH CAROLINA 169 (b) Corporations other than South Carolina corporations. Taxable (except in the case of telephone and telegraph, express and sleeping car com- panies, and railroads doing business in the state, the shares of stock of which are exempt; see citations under Sec. 2 (a)). (Civ. Code 1902, Sees. 260, 265, 271.) f 3. Insurance Corporation Stocks. Sees, -j 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. (a) South Carolina corporations. Exempt. (See note below.) (b) Corporations other than South Carolina corporations. Taxable. (See note below.) NOTE. If incorporated under the laws of South Carolina the stock is exempt. (Civ. Code 1902, Sees. 266, 303, 304, 306.) If incorporated under the laws of any other state or country and located outside of South Carolina, the stock is taxable. (Civ. Code 1902, Sees. 260, 265, 271.) If incorporated under the laws of any other state or country and located in South Carolina, the shares are exempt, for such corporation is taxed on all its property. (Civ.. Code 1902, Sees. 304 and 306.) If incorporated under the laws of South Carolina but owns no property in South Carolina, the shares of stock are taxable for such a corporation is not required to return its capital for taxation in this state. (Civ. Code 1902, Sees. 260 and 305.) 170 INVESTMENT SECURITIES Sec. 6. Unincorporated Association Stocks. Shares of stock in unincorporated associa- tions are treated in the same manner as shares of stock in incorporated com- panies as far as taxation is concerned. (Civ. Code 1902, Sees. 260, 265, 266, 304, 306, 313.) BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. South Carolina State Bonds. Exempt. (Civ. Code 1902, Sec. 266.) Sec. 9. South Carolina Municipal Bonds. Exempt if issued since Feb. 20, 1912 (Acts 1912, No. 385), otherwise taxable unless made specially exempt by the statute au- thorizing them. (Civ. Code. 1902, Sees. 260, 265, 266.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Civ. Code 1902, Sees. 260 and 265.) Sec. 11. Corporation Bonds. Taxable. (Civ. Code 1902, Sees. 260 and 265.) EXEMPT AND TAXABLE SOUTH CAROLINA 171 NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in South Carolina or elsewhere. (Civ. Code 1902, Sees. 260 and 265.) Sec. 13. Commercial Paper. Taxable. (Civ. Code 1902, Sees. 260 and 265.) BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in South Carolina Banks. , 16. Deposits in South Carolina Savings Banks. 17. Deposits in Banks Located Outside South Carolina. Taxable. (Civ. Code 1902, Sees. 260 and 265.) NOTE 1. A person may deduct from his "credits" the amount of all legal debts, claims, and demands against him whether such demands are payable in money, labor, or other valuable things. (Civ. Code 1902, Sec. 265.) NOTE 2. In estimating an income (to determine the income tax) there shall not be included interest upon such bonds or securities of this state or of the United States, the principal and interest of which are, by the law of their issue, exempt from taxation. (Civ. Code 1902, Sec. 325.) SOUTH DAKOTA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder. Pol. C., Sec. 2081. In case the holder is a nonresident, the bank pays the tax for the holder. Sec. 2171. In all other cases the bank retains sufficient of the dividends to insure pay- ment, and is liable in case this security is released before payment of the tax by the shareholder. Sec. 2083. Deduction is allowed for real estate held by the bank. Sec. 2081, supra. (b) South Dakota banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Pol. C., Sec. 2055.) (d) Building and loan associations. Taxable whether domestic or foreign. (Const., Art. 11, Sees. 2 and 7; Art. 17, Sec. 19; Pol. C., Sec. 2058.) [172] EXEMPT AND TAXABLE SOUTH DAKOTA 173 Sec. 2. Public Service Corporation Stocks. (a) South Dakota corporations. Exempt if the corporation is located in the state. (Pol. C., Sees. 2058, 2060, 2061, 2062, 2113, 2126, 2131.) Otherwise taxable. (Sees. 2055, 2058.) (b) Corporations other than South Dakota corporations. Same as South Dakota corporations. Sec. 3. Insurance Corporation Stocks. (a) South Dakota corporations. The shares are exempt as such, the corpora- tion being taxed directly on its capital. (Pol. C., Sees. 2055, 2058, 2076.) (b) Corporations other than South Dakota corporations. Taxable. (Pol. C., Sees. 2055, 2058.) Sec. 4. Manufacturing Corporation Stocks. (a) South Dakota corporations. Exempt if the corporation is located in the state. (See note after Sec. 6.) (Pol. C., Sees. 2055, 2058, 2076, 2077.) Otherwise taxable. (Sees. 2055, 2058.) (b) Corporations other than South Dakota corporations. Same as South Dakota corporations. 174 INVESTMENT SECURITIES Sec. 5. Other Business Corporation Stocks. (a) South Dakota corporations. Exempt if the property of the corporation is taxed in the state. (See note after Sec. 6.) (Pol. C., Sec. 2058.) Otherwise taxable. (Sees. 2055, 2058. But see note after Sec. 6.) Shares in mercantile corporations, to the ex- tent to which their property is located in the state, are exempt. (Sec. 2058, supra; Sees. 2076, 2078.) (b) Corporations other than South Dakota corporations. Same as South Dakota corporations. Sec. 6. Unincorporated Association Stocks. Same as corporation stocks. (Const., Art 11, Sec. 2; Art, 17, Sec. 19; Pol. C., Sec. 2058.) NOTE. Political Code, Sec. 2058, provides that shares of stock shall be taxed when the property of the corporation is not taxed in the state. The courts- have not decided whether or not the shares are taxable in case only a part of the corporate property is located in the state. The practice of assessors is to> tax such shares. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sees. EXEMPT AND TAXABLE SOUTH DAKOTA 175 r 8. South Dakota State Bonds. 9. South Dakota Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Pol. C., Sec. 2076, Subd. 22.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the land is in South Dakota or elsewhere. (Pol. C., Sees. 2052, 2055.) They are treated as credits, and hence are evidently taxable to resident holders wherever the land is situated. (See sec- tions above cited.) Sec. 13. Commercial Paper. Taxable. (Same citations. See also 5 S. D. 84.) Deduction of debts is not allowed from any species of taxable property. (Pol. C., Sec. 2085; 2 S. D. 58; 4 S. D. 6.) 176 Sees. INVESTMENT SECURITIES BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in South Dakota Banks. 16. Deposits in South Dakota Savings Banks. 17. Deposits in Banks Located Outside South Dakota. Taxable. (Pol. C., Sees. 2052, 2055.) TENNESSEE. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but the bank pays the tax for the stockholder. Deduction is made for real estate and other tangible assets. (Acts of 1907, Ch. 602, Sec. 24.) (b) Tennessee banks. Taxed in the same manner as shares in na- tional banks. (c) Banks of other states and countries. Taxable. (Acts of 1907, Ch. 602, Sees. 4 and 8.) Foreign banks doing business in Tennessee are treated the same as national and domestic banks. (d) Building and loan associations. Exempt. (Acts of 1907, Ch. 541, Sec. 7; cf. Ch. 602, Sec. 24.) Sec. 2. Public Service Corporation Stocks. (a) Tennessee corporations. Exempt. (Acts of 1907, Ch. 602, Sees. 21, 24.) (b) Corporations other than Tennessee corporations. Taxable except shares in corporations doing business in Tennessee, which are exempt. (Acts of 1907, Ch. 602, Sec. 24.) 12 [177] 178 INVESTMENT SECURITIES Sec. 3. Insurance Corporation Stocks. (a) Tennessee corporations. Taxable to the holders, but the company to pay the tax. (Acts of 1907, Ch. 602, Sees. 21, 24.) (b) Corporation other than Tennessee corporations. Taxable except in the case of foreign insur- ance corporations doing business in Ten- nessee, the shares of which are taxed in the same manner as those of domestic in- surance corporations. (Acts of 1907, Ch. 602, Sec. 8.) Sec. 4. Manufacturing Corporation Stocks. (a) Tennessee corporations. Exempt. (Acts of 1907, Ch. 602, Sees. 8, 22.) (b) Corporations other than Tennessee corporations. Taxable. (Acts of 1907, Ch. 602, Sec. 8.) Except the shares of stock in corporations doing business in Tennessee, which are exempt. (Acts of 1907, Ch. 602, Sees. 8, 22, 23.) Sec. 5. Other Business Corporation Stocks. (a) Tennessee corporations. Taxable, but the corporation pays the tax for the stockholder. (Acts of 1907, Ch. 602, Sees. 8, 24.) EXEMPT AND TAXABLE TENNESSEE 179 (b) Corporations other than Tennessee corporations. Taxable. (Acts of 1907, Ch. 602, Sec. 8.) If the corporation does business in Tennessee the tax is paid by the corporation for the shareholder. (Acts of 1907, Ch. 602, Sec. 24.) Sec. 6. Unincorporated Association Stocks. Uncertain. There are no provisions dealing expressly with shares in unincorporated associations, but partnership property is taxed to the firm and not to the individual partners. BONDS. Sees. Sec. 7. United States Bonds. Exempt. (See p. *11.) 8. Tennessee State Bonds. 9. Tennessee Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Acts of 1907, Ch. 602, Sec. 8; Bank v. Memphis, 116 Tenn. 641.) 180 INVESTMENT SECURITIES NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Ten- nessee or outside. (Acts of 1907, Ch. 602, Sec. 8, Cl. 7.) Sec. 13. Commercial Paper. Taxable. (Acts of 1907, Ch. 602, Sec. 8, Cl. 7.) Sees. BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Tennessee Banks. 16. Deposits in Tennessee Savings Banks. 17. Deposits in Banks Located Outside Ten- nessee. Taxable. (Acts of 1907, Ch. 602, Sec. 8, Cl. 7.) There is an income tax on the income from United States bonds and stocks and bonds not taxed ad valorem. (Acts of 1907, Ch. 602, Sec. 8.) TEXAS. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable in the hands of the holder. Banks required to list and shareholders to ren- der all shares owned by them, Unren- dered shares are assessed against the shareholders by the assessor as other un- rendered property. (Texas Revised Civil Statutes 1911, Articles 7503, 7505, and 7522; City of Marshall v. State Bank, 127 S. W. 1083.) (b) Texas banks. Taxable in hands of holder. (Texas Revised Civil Statutes 1911, Articles 7503, 7505, and 7522; City of Marshall v. State Bank, 127 S. W. 1083.) (c) Banks of other states and countries. Taxable. (Revised Statutes 1911, Articles 7503, 7505, 7518; City of Marshall v. State Bank, 127 S. W. 1083.) (d) Building and loan associations. Taxable. (Revised Statutes 1911, Articles 7503, 7505, 7506, 7517.) [181] 182 INVESTMENT SECURITIES Sec. 2. Public Service Corporation Stocks. (a) Texas corporations. Exempt. (Revised Statutes 1911, Articles 7515, 7518, 7519, 7524, 7526.) (b) Corporations other than Texas corporations. Taxable. (Revised Statutes 1911, Articles 7503, 7505, 7518.) f 3. Insurance Corporation Stocks. Sees. *j 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. (a) Texas corporations. Exempt. (See next note.) (b) Corporations other than Texas corporations. Taxable. (See next note.) NOTE. No distinction is made between these last three classes of corporations. If the corporation is incorporated under the laws of Texas its stock is exempt in the hands of the holder. (Revised Stat- utes 1911, Articles 7505, 7518, 7519, 7526.) If the corporation is incorporated under the laws of any other state or country, its stock is taxable to the holder. (Revised Statutes 1911, Articles 7503, 7505, 7518.) Sec. 6. Unincorporated Association Stocks, (a) Associations or companies owning property in Texas. Exempt. (Revised Statutes 1911, Articles 7503, 7504, 7505, 7506, 7518, 7519.) NOTE. The effect of the above articles of the Stat- Htes is to require all the property of joint-stock or unincorporated associations or companies owning EXEMPT AND TAXABLE TEXAS 183 property in Texas to be listed and rendered for taxa- tion; to require the stock of the members to be also listed and rendered would be to impose double taxa- tion. (Gillespie v. Gaston, 67 T. 599; City of Marshall v. State Bank, 127 S. W. 1083. See, specially, defini- tion of "Person," Art. 7506.) (b) Associations or companies not owning property in Texas. Taxable. (Revised Statutes 1911, Articles 7503, 7504, 7505, 7506, 7509, 7518, 7519.) NOTE. Article 7509 requires every person to list or render for taxation " stock of joint-stock or other companies (when the property of such company is not assessed in this state)." Since such companies not owning property in Texas would not be required to render their property in this state, the said article 7509 would require the Texas owners of stock therein to list or render their stock for taxation. Sees". BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) 8. Texas State Bonds. 9. Texas Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Revised Statutes 1911, Articles 7503, 7505, 7518. See also Campbell v. Wiggin, 85 T. 429, 21 S. W 599, holding that exemption from taxation cannot 184 INVESTMENT SECUEITIES be presumed; therefore it would seem to follow, since there is no express exemption of any kind of bonds, that they are taxable.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Texas or elsewhere. (Revised Statutes 1911, Articles 7503, 7505, 7506; Hall v. Miller, 102 T. 289, 115 S. W. 1169.) Sec. 13. Commercial Paper. Taxable. (Revised Statutes 1911, Articles 7503, 7505, 7506, 7518.) Sees. BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Texas Banks. 16. Deposits in Texas Savings Banks. 17. Deposits in Banks Located Outside Texas. Taxable, under general head of personal property. (Revised Statutes 1911, Articles 7503. 7505, 7506, 7518.) NOTE. The following provisions are made as to the taxation of deposits and debts: Personal Prop- erty includes all the moneys at interest due the EXEMPT AND TAXABLE TEXAS 185 person to be taxed, over or above what he pays in- terest for, and all other debts due such person over and above his indebtedness, but article 7523 says that he shall not be entitled to any deduction on ac- count of any bond, note, or obligation of any kind given to any mutual insurance company nor on ac- count of any unpaid subscription to any religious, literary, scientific, or charitable institution or society nor on account of any subscription to or installment payable on the capital stock of any company, whether incorporated or unincorporated. UTAH. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but the bank pays the tax for the holder. Deductions are al- lowed for real estate owned by the bank. (Comp. Laws, Sees. 2507, 2508, 2509, 25U.) (b) Utah banks. Same as national banks. (Comp. Laws, Sees. 2507, 2508, 2509, 2511.) (c) Banks of other states and countries. Taxable, both when the bank is not located in the state and when the bank is located in the state. (Const., Art. 13, Sec. 2; Comp. Laws, Sees. 2501, 2505, 2507, 2508, 2509, 2511; Session Laws 1911, p. 35, Sec. 22.) (d) Building and loan associations. Exempt when their property is in Utah, other- wise taxable. (Const., Art. 13, Sec. 2; Comp. Laws, Sec. 2517; Session Laws 1909, p. 93.) [186] EXEMPT AND TAXABLE UTAH 187 Sec. 2. Public Service Corporation Stocks. (a) Utah corporations. Exempt. (Const., Art. 12, Sec. 14; Art. 13, Sees. 2 and 10; Comp. Laws, Sees. 2513, as amended by Session Laws 1909, p. 95, 252S, 2533-2536, inclusive, and 2559.) (b) Corporations other than Utah corporations. Taxable. (Const., Art. 13, Sec. 2; Comp. Laws, Sees. 2501, 2505.) Sec. 3. Insurance Corporation Stocks. (a) Utah corporations. Exempt. (Session Laws 1909, p. 297, Sees. 17 and 18.) (b) Corporations other than Utah corporations. Same as Sec 3 (a). Sec. 4. Manufacturing Corporation Stocks. (a) Utah corporations. Exempt if the corporation is located in the state. (Const., Art. 13, Sec. 2; Art. 13, Sec. 10; Comp. Laws, Sec. 2528.) Otherwise taxable. (Const., Art. 13, Sec. 2; Comp. Laws, Sees. 2501, 2505, 2530, 2532.) (b) Corporations other than Utah corporations. Same as Sec. 4 (a). Sec. 5. Other Business Corporation Stocks. (a) Utah corporations. Same as Sec. 4. 188 INVESTMENT SECURITIES (b) Corporations other than Utah corporations. Same as Sec. 4. Sec. 6. Unincorporated Association Stocks. Same as Sees. 4 and 5. (Const., Art. 12, Sec. 4; Comp. Laws, Sec. 2505, part 8.) NOTE. In practice no stock except that of banks is taxed in Utah. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) Sec. 8. Utah State Bonds. Generally taxable. (Const., Art. 13, Sec. 2; Comp. Laws, Sees. 2501, 2505.) The following, however, are expressly exempt : (a) The $200,000 state bonds to secure territorial indebted- ness. (Session Laws of 1896, Ch. 77.) (b) The $1,000,000 bond issue for state capitol. (Session Laws of 1911, Ch. 8.) (c) The $260,000 bond issue for state roads. (Session Laws of 1911, Ch. 45.) (d) State university bonds. (Session Laws of 1911, Ch. 14.) EXEMPT AND TAXABLE UTAH 189 Sec. 9. Utah Municipal Bonds. Taxable, but in practice they are not assessed. (Const., Art. 13, Sec. 2; Comp. Laws, Sees. 2501, 2505.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Same citations.) Sec. 11. Corporation Bonds. Taxable. (Same citations, and also Comp. Laws, Sec. 2517, as amended by Session Laws 1909, p. 93.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt whether the real estate is in Utah or elsewhere. (Const., Art. 13, Sec. 3.) Sec. 13. Commercial Paper. Taxable. (Const., Art. 13, Sec. 2; Comp. Laws, Sees. 2501, 2505, 2517, as amended by Session Laws 1909, p. 93.) But deduction of debts is allowed. (Const., Art. 13, Sec. 3; Comp. Laws, Sees. 2517, 2518.) 190 INVESTMENT SECURITIES BANK DEPOSITS. Sees. 14. Deposits in National Banks. 15. Deposits in Utah Banks. 16. Deposits in Utah Savings Banks. 17. Deposits in Banks Located Outside Utah. Taxable. (Const., Art. 13, See. 2; Comp. Laws, Sees. 2501, 2505, 2517, as amended by Session Laws 1909, p. 93.) VERMONT. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable. (But see note 1 after Sec. 6.) (P. S. of 1906, Sees. 515 and 517.) (b) Vermont banks. Taxable. (But see note 1 after Sec. 6.) (P. S. of 1906, Sees. 515 and 517.) (c) Banks of other states and countries. Exempt when taxed in such other state or foreign country. (But see note 5 after Sec. 6.) (P. S. of 1906, Sec. 496, III; Foster v. Stevens, 63 Vt. 175 (1890).) (d) Building and loan associations. No special statute. Sec. 2. Public Service Corporation Stocks. (a) Vermont corporations. Exempt. (But see note 2 after Sec. 6.) (P. S. of 1906, Sees. 496, V, 515, and 797, as amended by Acts 1908, Ch. 30, Sec. 4.) (b) Corporations other than Vermont corporations. Exempt when taxed in such other state or foreign country. (But see note 5 after Sec. 6.) (P. S. of 1906, Sec. 496, III.) [191] 192 INVESTMENT SECURITIES Sec. 3. Insurance Corporation Stocks. (a) Vermont corporations. Exempt. (P. S. of 1906, Sec. 797, as amended by Acts 1908, Ch. 30, Sec. 4.) (b) Corporations other than Vermont corporations. Exempt when taxed in such other state or for- eign country. (But see note 5 after Sec. 6.) (P. S. of 1906, Sec. 496, III.) Sec. 4. Manufacturing Corporation Stocks. (a) Vermont corporations. Taxable. (See note 3 after Sec. 6.) (P. S. of 1906, Sec. 515.) (b) Corporations other than Vermont corporations. Exempt when taxed in such other state or foreign country. (But see note 5 after Sec. 6.) (P. S. of 1906, Sec. 496, III.) Sec. 5. Other Business Corporation Stocks. (a) Vermont corporations. Taxable. (But see note 1 after Sec. 6.) (P. S. of 1906, Sec. 515.) (b) Corporations other than Vermont corporations. Exempt when taxed in such other state or foreign country. (But see note 5 after Sec. 6.) (P. S. of 1906, Sec. 496, III.) EXEMPT AND TAXABLE VERMONT 193 Sec. 6. Unincorporated Association Stocks. Such associations are held to be partnerships (Patch Mfg. Co. v. Capeless, 79 Vt. 1) and the shares are exempt. (P. S. of 1906, Sec. 510, Subd. 2.) NOTE 1. By P. S. of 1906, Sec. 520, in assessing stock of manufacturing, mercantile, or trading cor- porations the value of their realty in this state or elsewhere, and the value of their personal estate taxed in Vermont or outside the state, shall be deducted from the whole value of the stock; in the case of other corporations, the whole value of their domestic or foreign realty shall be deducted. NOTE 2. By the term " Public Service Corporations " are included railroad, steamboat, car, transportation, telegraph, or telephone companies. NOTE 3. A town may by special vote exempt prop- erty and capital of manufacturing, quarrying, and mining corporations, the exemption not to last more than ten years from the date of the commencement of business. (P. S. of 1906, Sec. 499) This has been held to exempt the shares of its stockholders. (Richardson v. St. Albans, 72 Vt. 1.) NOTE 4. There are many exemptions in Vermont by special vote of the legislature. NOTE 5. In practice shareholders seldom return for taxation shares in foreign corporations. They appar- ently assume that the stock or property of such cor- porations is taxed in the foreign jurisdiction. 13 194 INVESTMENT SECURITIES BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) But interest and income from such bonds may be taxed. (P. S. 1906, Sec. 496, I.) Sec. 8. Vermont State Bonds. Taxable. (P. S. of 1906, Sees. 488 and 494.) Sec. 9. Vermont Municipal Bonds. Taxable, except as to those issued after Feb. 1, 1907, as evidence of obligations for money loaned to a county, town, village, incorporated school or fire district, at a rate of interest not exceeding 4 per cent, for the purpose of constructing, purchas- ing, or repairing water, sewer, or lighting systems, permanent highways, bridges, walks, or public buildings, or for the pur- pose of aiding in the construction of a railroad or for the purpose of refunding a debt contracted for any of the fore- going purposes. (P. S. of 1906, Sec. 496, (12), as amended by Acts 1910, Ch. 30.) EXEMPT AXD TAXABLE VERMONT 195 Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (P. S. of 1906, Sees. 488 and 494.) Sec. 11. Corporation Bonds. Taxable. (P. S. of 1906, Sees. 488 and 494.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Vermont or elsewhere. (P. S. of 1906, Sees. 488 and 494.) Sec. 13. Commercial Paper. Taxable. (P. S. of 1906, Sees. 488 and 494.) NOTE. Money, stocks, bonds, mortgages and other evidences of indebtedness belonging to insurance, surety or guaranty companies are exempt. (Acts 1908, Ch. 30, Sec. 4.) BANK DEPOSITS. Sec. 14. Deposits in National Banks. Taxable except as to national banks wherein the rate of interest exceeds 2 per cent., and where bank files stipulation agreeing to pay tax. In practice all banks do this. (Acts 1910, Ch. 35, Sec. 6; P. S. of 1906, Ch. 37.) 196 INVESTMENT SECUKITIES Sec. 15. Deposits in Vermont Banks. Exempt. (Acts 1910, Ch. 35, Sec. 3.) Sec. 16. Deposits in Vermont Savings Banks. Exempt. (Acts 1910, Ch. 35, Sec. 3.) Sec. 17. Deposits in Banks Located Outside Vermont. Taxable. (Acts 1910, Ch. 35, Sec. 6.) NOTE 1. The taxpayer may deduct from the value of all taxable personalty the excess of his debts over all tax exempt stocks, bonds, notes and deposits. (Acts 1910, Ch. 35, Sec. 7.) NOTE 2. A license tax is imposed on persons and corporations selling investment securities in Vermont, of 1% on the value of such securities sold in each year and is in lieu of all other taxes for that year on such securities. If the vendor reports the names of vendees, the tax may be assessed to them. If the vendees list the shares themselves, this tax is abated. (P. S. of 1906, Sees. 747-750.) VIRGINIA. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to holder but the bank pays the tax for the stockholder. (Code 1904, Tax Bill, Sees. 17-22; Sec. 17, as amended by Acts 1912, Ch. 15.) (b) Virginia banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Code Supp. 1910, Tax Bill, 8th Subsection of Sec. 8.) (d) Building and loan associations. Exempt whether domestic or foreign. (Code 1904, Tax Bill, Sec. 82.) Sec. 2. Public Service Corporation Stocks. (a) Virginia corporations. Exempt, except stocks of steamboat, express, sleeping car, telegraph, and telephone corporations, which are taxable. (Code Supp. 1910, Tax Bill, 8th Subsection of Sec. 8. See also Sec. 27, as amended by Acts 1912, Ch. 214; Sec. 28, as amended by Acts 1912, Ch. 333.) [197] 198 INVESTMENT SECUKITIES '(b) Corporations other than Virginia corporations. Taxable, except stock of railway, canal, water, gas, and electric corporations doing busi- ness in the state. (Code Supp. 1910, Tax Bill, 8th Subsection of Sec. 8.) NOTE. Stocks of corporations paying a franchise tax are exempt. Railway and canal corporations do- ing business in the state pay a franchise tax. (Code Supp. 1910, Tax Bill, Sec. 28.) All corporations doing business in the state furnishing water or heat, light and power whether by gas or electricity pay a franchise tax. (Acts 1912, Ch. 333, Sec. 7.) Sec. 3. Insurance Corporation Stocks. (a) Virginia corporations. Exempt. (Code Supp. 1910, Tax Bill, Sees. 23-26.) (b) Corporations other than Virginia corporations. Taxable. (See sections cited under Sec. 3 (a).) Sec. 4. Manufacturing Corporation Stocks. (a) Virginia corporations. Exempt. (Code Supp. 1910, Tax Bill, 8th Subsection of Sec. 8. See also Sec. 43.) (b) Corporations other than Virginia corporations. Taxable. (See sections cited under Sec. 4(a).) Sec. 5. Other Business Corporation Stocks, (a) Virginia corporations. Same as Sec. 4 (a). EXEMPT AND TAXABLE VIRGINIA 199 {b) Corporations other than Virginia corporations. Same as Sec. 4(b)., Sec. 6. Unincorporated Association Stocks. Exempt. NOTE. There are no tax laws particularly relating to unincorporated associations or their shares. Code Supp. 1910, Tax Bill, Sec. 8, defining taxable per- sonal property includes " shares of stock of all in- corporated companies, except companies all of whose capital is taxed by this state, companies which pay a franchise tax in this state and banks, banking asso- ciations, trust and security companies which are other- wise taxed in this state." Under this the shares of nearly all domestic corporations are exempt because they pay a franchise tax, and shares in most foreign corporations are taxable because all their capital (i. e., property) is not taxed in Virginia. The statute impos- ing the franchise tax on domestic manufacturing and business corporations (See. 43) uses the words: "Joint stock company or association organized by, under or pursuant to law in this state " but excepts railway, canal, light, heat, power, gas, water, insur- ance, banking, security, and telephone companies from its operation as they are subject to a franchise tax levied under other sections. In practice all unincor- porated association shares are exempt because no law expressly provides for their taxation. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11.) 200 INVESTMENT SECURITIES Sec. 8. Virginia State Bonds. All obligations issued by the state since Feb- ruary 14, 1882, are exempt. (Const. 1902, Art. XIII, Sec. 183; Code 1904, Sec. 488; Code Supp. 1910, Tax Bill, Sec. 8, Cl. 1.) r 9. Virginia Municipal Bonds. , 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. Taxable. (Code Supp. 1910, Tax Bill, Sec. 8.) NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Taxable whether the real estate is in Virginia or elsewhere. (Code Supp. 1910, Sec. 8.) Sec. 13. Commercial Paper. Same as Sec. 12. Sees. EXEMPT AND TAXABLE VIRGINIA 201 BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Virginia Banks. 16. Deposits in Virginia Savings Banks. 17. Deposits in Banks Located Outside Vir- ginia. Taxable. (Code Supp. 1910, 7th Subsection of Sec. 8. See also Code 1904, Sec. 489.) NOTE 1. Bonds, demands, and claims owing to others may be deducted from the total amount of bonds and notes and only the balance assessed, but this shall not include any money due on account of the purchase of nontaxable securities. (Code Supp. 1910, Tax Bill, 1st Subsection of Sec. 8. See also Sec. 17, as amended by Acts 1912, Ch. 15.) NOTE 2. Virginia levies an income tax on income in excess of $2,000 in addition to the direct property tax and it applies to the income from all securities regardless of the above exemptions. (Code 1904, Tax Bill, Sees. 9 and 10, as amended by Acts 1912, Ch. 279. See also Sec. 11.) WASHINGTON. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable, but a proportionate part of the as- sessed value of any real estate owned by the bank is deducted from the value of the shares of each stockholder. The tax is always paid by the bank. (Rem. & Bal. Codes, Sees. 9134, 9135, 9136.) NOTE. Under the decision in Pullman State Bank v. Manring, 18 Wash. 250, it would seem that bank stocks like other stocks should be classed as " credits " rather than " property " and exempt (see note under 2) but in practice they are still taxed. (b) Washington banks. Taxable, but deductions are allowed for real estate as under (a). The tax is always paid by the bank. (Rem. & Bal. Codes, Sees. 9134, 9135, 9136.) (c) Banks of other states and countries. Exempt in practice. (See note after Sec. 5.) (d) Building and loan associations. Exempt in practice. (See note after Sec. 5.) [202] EXEMPT AND TAXABLE WASHINGTON 203 f 2. Public Service Corporation Stocks, g j 3. Insurance Corporation Stocks. I 4. Manufacturing Corporation Stocks. [ 5. Other Business Corporation Stocks. f (a) Washington corporations. [ (b) Corporations other than Washington corporations. Exempt in practice. NOTE. By the statutes of Washington stock in corporations is exempt if the corporation is taxed on its property. (Rem. & Bal. Codes, Sec. 9127.) This has been held constitutional because stocks are said to be " credits " like bonds, and not " property " within the meaning of Art. VII, Sees. 1 and 2 of the state constitution. (Wolf v. Parmenter, 50 Wash. 164.) In practice it is apparently assumed that all corporations, whether incorporated under the laws of Washington or elsewhere, and whether doing busi- ness in Washington or elsewhere, are taxed on their property, and so their stock is exempt. Sec. 6. Unincorporated Association Stocks. Exempt. (Rem. & B'al. Codes, Sec. 9127; Ridpath v. Spokane County, 23 Wash. 436.) BONDS. Sees. Sec. 7. United States Bonds. Exempt. (Seep. 11.) 8. Washington State Bonds. 9. Washington Municipal Bonds. 10. State and Municipal Bonds of Other States and Countries. 11. Corporation Bonds. 204 INVESTMENT SECURITIES Exempt. (Rem. & Bal. Codes, Sec. 9093; Wolf v. Parmenter, 50 Wash. 164.) Under the decisions referred to in the note after Sec. 5, all bonds are treated as " credits," not " property " and so are exempt. NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt whether the real estate is in Wash- ington or elsewhere. (Rem. & Bal. Codes, Sec. 9093.) Sec. 13. Commercial Paper. Exempt. (Same citation.) BANK DEPOSITS. Sees. 14. Deposits in National Banks. 15. Deposits in Washington Banks. 16. Deposits in Washington Savings Banks. 17. Deposits in Banks Located Outside Washington. Exempt in practice. NOTE. The statutes of Washington expressly de- fine bank deposits as " property " and make them therefore taxable. (Rem. & Bal. Codes, Sec. 9097.) But under the decision in Wolf v. Parmenter, 50 Wash. 164, above referred to, distinguishing between property and credits, the practice now is to treat all bank deposits as exempt. WEST VIRGINIA. STOCKS. Sec. 1. Bank Stocks. i Banks. 17. Deposits in Banks Located Outside West Virginia. Taxable. (Code of 1906, Sees. 745, 746, and 747; 18 W. Va. 476.) NOTE. Deduction of debts is allowed against money, credits and investments, which include stocks, bonds, notes, and deposits. (Code 1906, Sec. 751.) WISCONSIN. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable to the holder, but the bank may pay the tax for the holder. (Rev. Stat. 1898, Sec. 1050, Subd. 9, Sec. 2024, pp. 1527, 1528; Suppl. 1906, Sees. 1042, 1051, 1057; 124 Wis. 15.) (b) Wisconsin banks. Same as national banks. (c) Banks of other states and countries. Same as Sees. 2-17 inclusive (see below). (d) Building and loan associations. Exempt. (Acts 1911, Ch. 658, Part III, Sec. 3.) Sees. 2-17 Inclusive. All other stocks, bonds, notes, and deposits have been exempted from the general property tax and holders are now taxed only on the income derived from these at uniform state rates, increasing with the size of the income. (Acts 1911, Ch. 658, Sec. 3.) The only exemption is that dividends or in- come are exempt if received from any 14 [209] 210 INVESTMENT SECURITIES corporation or association which has, it- self, been assessed on its income and has reported the name and address of the stockholder and the amount of his divi- dend. (Rev. Stat., See. 1087m-4(c), as amended by Acts 1911, Ch. 658, Sec. 1.) NOTE. The effect of the Income Tax Law of 1911 on the taxation of bank stocks is not entirely clear, but it would seem that they continue to be subject to the direct property tax and exempt fi*om the income tax. The entire law was held constitutional in State v. Frear, 134 N. W. 673. WYOMING. STOCKS. Sec. 1. Bank Stocks. (a) National banks. Taxable. (Comp. Stat., Sec. 2332.) (b) Wyoming banks. Same as national banks. (c) Banks of other states and countries. Taxable. (Comp. Stat., Sees. 2324, 2339.) (d) Building and loan associations. Taxable. (Comp. Stat., Sees. 2324, 2339.) Sees. r2. Public Service Corporation Stocks. 3. Insurance Corporation Stocks. 4. Manufacturing Corporation Stocks. 5. Other Business Corporation Stocks. (a) Wyoming corporations. (b) Corporations other than Wyoming corporations. Taxable. NOTE. All shares of stock, domestic and foreign, are taxable to the holder since the repeal of the ex- empting clause in Comp. Stat., Sec. 2334, by Acts 1911, Ch. 79. [211] 212 INVESTMENT SECURITIES Sec. 6. Unincorporated Association Stocks. The statutes do not expressly provide for tax- ation of such associations or their shares, but if they are treated as partnerships, the property of the association will be taxed and not the shares. BONDS. Sec. 7. United States Bonds. Exempt. (See p. 11). Sec. 8. Wyoming State Bonds. Exempt, but they must be listed and marked " exempt." (Comp. Stat., Sec. 2323.) Sec. 9. Wyoming Municipal Bonds. Exempt, but they must be listed and marked " exempt." (Comp. Stat., Sec. 2323.) Sec. 10. State and Municipal Bonds of Other States and Countries. Taxable. (Const., Art. 15, Sec. 11; Comp. Stat., Sees. 2324, 2335.) Sec. 11. Corporation Bonds. Taxable. (Comp. Stat., Sees. 2324, 2335.) Unless the bonds are secured by mortgage on property within the state, when they are exempt. (See Sec. 12.) EXEMPT AND TAXABLE WYOMING 213 NOTES. Sec. 12. Notes Secured by Real Estate Mortgages. Exempt when the land is within the state. All mortgages, whether real or chattel, upon property within the state are exempt. (Session Laws of 1911, Ch. 72.) Otherwise taxable. (Comp. Stat., rfecs. 2324, 2335, 2339.) Sec. 13. Commercial Paper. Taxable. (Comp. Stat., Sees. 2324, 2336, 2339.) Sees. BANK DEPOSITS. 14. Deposits in National Banks. 15. Deposits in Wyoming Banks. 16. Deposits in Wyoming Savings Banks. 17. Deposits in Banks Located Outside Wyoming. Taxable. (Comp. Stat., Sees. 2324, 2339.) NOTE. From the gross amount of all money and credits the taxpayer may deduct debts. (Comp. Stat., Sec. 2336.) SUMMARY OF TAXATION OF INVESTMENTS. CLASSIFIED BY SUBJECTS. NOTE. The income tax in North Carolina, South Carolina, Ok- lahoma, Tennessee and Wisconsin applies to the income from prop- erty herein described as exempt. SHARES OF STOCK. Sec. 1. Bank Stocks. (a) Shares in National Banks Located in the State Levying the Tax. Taxable: Alabama, Arizona, Arkansas, Cali- fornia, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Mary- land, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsyl- vania, South Carolina, South Dakota, Ten- nessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming. NOTE. 'In almost all of the above states, however, the tax is paid for the stockholder by the bank. Taxable at a low fixed rate: Rhode Island. Exempt: Delaware, District of Columbia. [214] TAXATION OF INVESTMENTS 215 (b) Shares in Banks and Trust Companies Incorporated by the State Levying the Tax. Taxable: Alabama, Arizona, Arkansas, Cali- fornia, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michi- gan, Minnesota, Mississippi, Missouri, Mon- tana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming. NOTE. In most of the above states, however, the tax is paid for the stockholder by the bank. Exempt: Delaware, District of Columbia, Massachusetts, New Hampshire. In Maryland, shares of stock in savings banks and other institutions for receiving long-time deposits and paying interest thereon, are exempt. Shares in other state banks are taxable. Shares of stock in New York and New Jersey trust companies are exempt. Shares in all other New York and New Jersey banks are taxable. In Rhode Island, shares of stock in do- mestic savings banks are exempt. Shares in other domestic banks are taxable at a low fixed rate. 216 INVESTMENT SECURITIES (c) Shares in Banks Incorporated by States or Countries Other than that Levying the Tax. Taxable: Alabama, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisi- ana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Okla- homa, Oregon, Pennsylvania, South Caro- lina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wyoming. Taxable at a low fixed rate : Rhode Island. Exempt: Connecticut, Delaware, District of Columbia, Missouri, Wisconsin. Exempt in practice (see text) : New Hamp- shire, New Jersey, Vermont, Washington. Arizona (see text). (d) Shares in Building and Loan Associations or Co- operative Banks Organized Under the Laws of the State Levying the Tax. Taxable: Arizona, Colorado, Florida, Illi- nois, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Montana, Nebraska, New Mex- ico, North Dakota, Ohio, Oregon, South Dakota, Texas, West Virginia, Wyoming. Taxable at a low fixed rate: Rhode Island. Exempt: California, Connecticut, Delaware, District of Columbia, Georgia, Idaho, Maine, Massachusetts, Minnesota, New Hampshire, New Jersey, New York, North TAXATION OF INVESTMENTS 217 Carolina, Oklahoma, South Carolina, Ten- nessee, Virginia, Washington, Wisconsin. In Maryland, Nevada, Utah and Vermont stock of building and loan associations is exempt if the property of the association is in the state ; otherwise such stock is taxable. In Arkansas, Indiana and Pennsylvania stock in building and loan associations is taxable if it is matured or partially matured to the extent of paying dividends ; otherwise it is exempt. Alabama, Michigan, Missouri (see text). Sec. 2. Public Service Corporation Stocks. (a) Shares in Companies Incorporated by the State Levying the Tax. Taxable: Oregon, Wyoming. Taxable at a low fixed rate: Pennsylvania. Taxable, but corporation pays tax: Maryland. Exempt: Alabama, Arkansas, Colorado, Con- necticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Massachusetts, Mississippi, Mis- souri, Montana, New Jersey, New York, North Carolina, North Dakota, Ohio, Okla- homa, South Carolina, South Dakota, Ten- nessee, Texas, Utah, Vermont, Washington, Wisconsin. Exempt in practice (see text) : California, Indiana, Kentucky, Minnesota, Nebraska, Nevada, New Hampshire, Ehode Island, West Virginia. 218 INVESTMENT SECURITIES In Iowa, Maine and Virginia it depends on the kind of business done. In Iowa, where taxable, the tax is at a low fixed rate (see text). Arizona, Michigan and New Mexico (see text). (b) Shares in Companies Incorporated by Some Other State or Country than that Levying the Tax. Taxable: Alabama, Florida, Georgia, Idaho, Illinois, Indiana, Louisiana, Michigan, Mis- sissippi, Montana, New Mexico, North Dakota, Oregon ; Texas, Utah, Wyoming. Taxed in practice (see text) : Colorado. Taxable at a low fixed rate: Iowa, Pennsyl- vania. Exempt: Connecticut, Delaware, District of Columbia, Missouri, New York, Wisconsin. Exempt in practice (see text) : New Hamp- shire, Vermont, Washington. Exempt if the corporation does business or has property in the state (see text) : Ari- zona, California, Kansas, Kentucky, Minne- sota, Nebraska, Nevada, New Jersey, North Carolina, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, West Virginia. In Arkansas, Maine, Maryland, Massa- chusetts and Virginia stock in certain kinds of foreign public service corporations doing business in the state is exempt, all others taxable (see text). TAXATION OF INVESTMENTS 219 In Ohio it depends on the amount of prop- erty of the corporation in the state (see text). Sec. 3. Insurance Corporation Stocks. (a) Shares in Companies Incorporated by the State Levying the Tax. Taxable: Montana, Nebraska, Oregon, Wyoming. Taxable at a low fixed rate (see text) : Iowa, Pennsylvania, Rhode Island. Taxable, but corporation pays tax: Mary- land, Tennessee. Exempt: Alabama, Arkansas, Colorado, Con- necticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Kansas, Louisi- ana, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Wisconsin. Exempt in practice (see text) : Kentucky, New Hampshire, Washington. In Arizona, California, Idaho, Indiana, Minnesota, Nevada and West Virginia stock in domestic insurance corporations is exempt if the corporation does busi- ness in the state; otherwise such stock is taxable. In Maine shares in life insurance com- panies are exempt; others taxable. New Mexico (see text). 220 INVESTMENT SECUEITIES (b) Shares in Companies Incorporated by some Other State or Country than that Levying the Tax. Taxable: Alabama, Florida, Georgia, Illi- nois, Indiana, Louisiana, Maine, Massa- chusetts, Michigan, Mississippi, Nebraska, North Carolina, North Dakota, South Da- kota, Texas, Virginia, Wyoming. Taxed in practice (see text) : Colorado. Taxable at a law fixed rate: Iowa, Maryland, Pennsylvania, Ehode Island. Exempt: Connecticut, Delaware, District of Columbia, Missouri, New York, Oregon, Utah, Wisconsin. Exempt in practice (see text) : New Hamp- shire, New Jersey, Vermont, Washington. In Arizona, Arkansas, California, Idaho, Kansas, Kentucky, Minnesota, Montana, Nevada, Oklahoma, South Carolina and West Virginia shares of stock in foreign insurance corporations are exempt if the corporation does business in the state; otherwise they are taxable. In Ohio it depends on amount of property of the corporation in the state (see text). New Mexico and Tennessee (see text). Sec. 4. Manufacturing Corporation Stocks. (a) Shares in Companies Incorporated by the State Levying the Tax. Taxable: Oregon, Vermont, Wyoming. Taxable, but corporation pays the tax: Maryland. TAXATION OF INVESTMENTS 221 Taxable at a low fixed rate : Iowa. Exempt: Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Kansas, Louisiana, Massa- chusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Tennessee, Texas, Virginia, Wisconsin. Exempt in practice (see text) : Kentucky, New Hampshire, Washington.. In Arizona, California, Idaho, Indiana, Maine, Minnesota, Montana, Nebraska, Ne- vada, New Mexico, Ehode Island, South Carolina, South Dakota, Utah and West Virginia shares of stock in domestic manu- facturing corporations are exempt if the corporation pays a tax upon its property or capital or ' ' is located ' ' in the state ; otherwise they are taxable. Whether all the property of the corporations must be in the state granting its charter in order that the stock may be exempt has not in all cases been decided (see text). In Pennsylvania shares of stock in do- mestic manufacturing companies, except brewing and distilling corporations, are exempt to an extent equal to the proportion of the entire corporate capital invested in manufacturing in the state ; and the bal- ance is taxed. Shares in brewing and dis- tilling companies are taxed upon their 222 INVESTMENT SECURITIES entire value. All these taxes are at a low fixed rate. Alabama (see text). (b) Shares in Companies Incorporated by some Other State or Country than that Levying the Tax. Taxable: Florida, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Mis- sissippi, North Carolina, North Dakota, Oregon, Texas, Virginia, Wyoming. Taxed in practice (see text) : Colorado. Taxable at a low fixed rate: Iowa, Maryland. Exempt: Connecticut, Delaware, District of Columbia, Missouri, New York, Wisconsin. Exempt in practice (see text) : New Hamp- shire, New Jersey, Vermont, Washington. In Ohio it depends on the amount of prop- erty of the corporation in the state (see text). In Arizona, Arkansas, California, Idaho, Kansas, Kentucky, Maine, Minnesota, Mon- tana, Nebraska, Nevada, New Mexico, Okla- homa, Rhode Island, South Carolina, South Dakota, Tennessee, Utah and West Virginia shares of stock in foreign manufacturing corporations are exempt if the corporation pays a tax on its property or capital or 1 'is located" in the state; otherwise they are taxable. Whether all the property of the corporation must be in the state levying TAXATION OF INVESTMENTS 223 the tax in order that the stock may be ex- empt has not in all cases been decided (see text). In Pennsylvania, shares of stock in for- eign manufacturing corporations are ex- empt to an extent equal to the proportion of the corporate property invested in manufacturing in the state, and taxed for the balance. This does not apply to shares in brewing and distilling corporations, which are taxed upon their entire value in any case. All these taxes are at a low fixed rate. Alabama (see text). Sec. 5. Other Business Corporation Stocks. (a) Shares in Companies Incorporated by the State Levying the Tax. Taxable: Oregon, Vermont, Wyoming. Taxable, but corporation pays the tax: Mary- land, Tennessee. Taxable at a low fixed rate, but corporation pays tax: Pennsylvania. Taxable at a low fixed rate : Iowa. Exempt: Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Kansas, Louisiana, Mas- sachusetts, Michigan, Mississippi, Mis- souri, New Jersey, New York, North Caro- lina, North Dakota, Ohio, Oklahoma, Texas, Virginia, Wisconsin. 224 INVESTMENT SECURITIES Exempt in practice (see text) : Kentucky, Maine, New Hampshire, Washington. In Arizona, California, Idaho, Indi- ana, Minnesota, Montana, Nebraska, Ne- vada, New Mexico, Ehode Island, South Carolina, South Dakota, Utah and West Virginia shares of stock in other domestic business corporations are exempt if the corporation pays a tax upon its property or capital or "is located ' ' in the state ; otherwise they are taxable. Whether all the property of the corporation must be in the state granting the charter in order that the stock may be exempt has not in all cases been decided (see text). Alabama (see text). (b) Shares in Companies Incorporated by some Other State or Country than that Levying the Tax. Taxable: Florida, Georgia, Illinois, Indiana, Louisiana, Maine, Massachusetts, Michi- gan, Mississippi, North Carolina, North Dakota, Oregon, Texas, Virginia, Wyom- ing. Taxed in practice (see text) : Colorado. Taxable at a low fixed rate : Iowa, Maryland, Pennsylvania. Exempt: Connecticut, Delaware, District of Columbia, Missouri, New York, Wisconsin. Exempt in practice: New Hampshire, New Jersey, Vermont, Washington. TAXATION OF INVESTMENTS 225 In Ohio it depends on the amount of property . of the corporation in the state (see text). In Arizona, Arkansas, California, Idaho, Kansas, Kentucky, Minnesota, Montana, Nebraska, Nevada, New Mexico, Oklahoma, Rhode Island, South Carolina, South Da- kota, Utah, and West Virginia shares of stock in other foreign business corpora- tions are exempt if the corporation pays a tax on its property or capital or "is lo- cated ' ' in the state ; otherwise they are taxable. Whether all the property of the corpora- tion must be in the state levying the tax in order that the stock may be exempt has not in all cases been decided (see text). Sec. 6. Unincorporated Association Stocks. Taxable: Michigan, New York, Oregon. Taxable at a low fixed rate (see text) : Rhode Island. Exempt: Alabama, California, Colorado, Connecticut, Delaware, District of Colum- bia, Georgia, Indiana, Iowa, Louisiana, Massachusetts, New Hampshire, New Jer- sey, North Dakota, Vermont, Virginia, Washington, Wisconsin. In Arizona, Idaho, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Carolina, South Carolina, South 15 226 INVESTMENT SECURITIES Dakota and Texas shares of stock in unin- corporated associations are exempt if the association has property or "is located r in the state; otherwise they are taxable. In Arkansas, Florida, Illinois, Kentucky, Maryland, Missouri, Ohio, Pennsylvania, Utah and West Virginia such shares are treated like corporation shares, the rules of taxation differing according to the kind of business done. Maine, Mississippi, Oklahoma, Tennessee, Wyoming (see text). BONDS. Sec. 7. United States Bonds. Exempt in all states by U. S. Statute. Sec. 8. Bonds of the State Levying the Tax. Taxable: Arkansas, Colorado, Idaho, Illi- nois, Indiana, issued before April 23, 1903 ; Maine, issued before Feb. 1, 1909; Massa- chusetts, issued before Jan. 1, 1906 ; Michi- gan, Mississippi, issued before April 1, 1906; Montana, Nebraska, Nevada, North Dakota, Oregon, South Dakota, Vermont, Virginia, issued before Feb. 14, 1882 ; West Virginia. Exempt: Arizona, Alabama, California, Delaware, District of Columbia, Georgia, Indiana, issued since April 23, 1903; Kan- sas, Louisiana, Maine, issued since Feb. 1, TAXATION OF INVESTMENTS 227 1909; Maryland, Massachusetts, issued since Jan. 1, 1906; Minnesota, Mississippi, issued since April 1, 1906; New Jersey, New Mexico, Ohio, Oklahoma, Pennsyl- vania, South Carolina, Tennessee, Texas, Virginia, issued since Feb. 14, 1882 ; Wash- ington, Wisconsin. State bonds of Connecticut, New Hamp- shire, North Carolina, Rhode Island and Utah are taxable unless made expressly exempt by the statute authorizing the issue. New York state bonds are taxable with the exception of highway, canal and ter- minal bonds, which are exempt. Florida and Kentucky have no state bonds outstanding. Iowa, Missouri, Wyoming (see text). Sec. 9. Bonds of Municipalities of the State Levy- ing the Tax. Taxable: Arkansas, Colorado, Florida, Idaho, Illinois, Indiana, issued before April 23, 1903; Iowa, issued before July 4, 1909 ; Kentucky, Maine, issued before Feb. 1, 1909; Maryland, Massachusetts, issued before May 1, 1908 ; Mississippi, issued be- fore April 1, 1906; Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina issued before February 20, 1912 ; South Dakota, Tennes- see, Texas, Utah, Virginia, West Virginia. Taxable at a low fixed rate: Rhode Island. 228 INVESTMENT SECURITIES Exempt: Alabama, Arizona, California, Del- aware, District of Columbia, Georgia, Indi- ana, issued since April 23, 1903; Iowa, is- sued since July 4, 1909 ; Kansas, Louisiana, Maine, issued since Feb. 1, 1909; Massa- chusetts, issued since May 1, 1908; Michi- gan, Minnesota, Mississippi, issued since April 1, 1906; New Jersey, New Mexico, New York, Ohio, South Carolina, issued since Feb. 20, 1912 ; Washington, Wisconsin. Connecticut municipal bonds issued in aid of certain railroads are exempt. All others are taxable. New Hampshire municipal bonds issued since 1907 may be exempt in the hands of a resident of the municipality issuing the same if the municipality so votes. In all other cases they are taxable. Certain North Carolina and Vermont municipal bonds are exempt. All others are taxable (see text). Missouri, Wyoming (see text). Sec. 10. State and Municipal Bonds of States and Countries other than that Levying the Tax. Taxable: Arizona, Alabama, Arkansas, Cal- ifornia, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mis- sissippi, Montana, Nebraska, Nevada, New TAXATION or INVESTMENTS 229 Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wyoming. Taxable at a low fixed rate: Iowa, Rhode Island. Exempt: Delaware, District of Columbia, Washington, Wisconsin. Missouri (see text). Sec. 11. Corporation Bonds. Taxable: Arizona, Alabama, Arkansas, Con- necticut, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Okla- homa, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia. Taxed at a low fixed rate: Iowa, Maryland, Pennsylvania. Exempt: Delaware, District of Columbia, Washington, Wisconsin. Exempt on payment of license tax (see text) : Minnesota, New York. In Rhode Island, bonds of domestic or foreign corporations doing business in the state are exempt. All other corporation bonds are taxable at a low fixed rate. 230 INVESTMENT SECURITIES Certain bonds in California, Colorado, Massachusetts, New Jersey and Wyoming- are exempt (see text). Michigan, Missouri (see text). NOTES. Sec. 12. Mortgage Notes. (a) Mortgages of Real Estate Located in the State Levying the Tax. Taxable: Arizona, Arkansas, Florida, Georgia, Illinois, Indiana, Kansas, Ken- tucky, Maryland, Mississippi, . Montana, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, West Virginia. In Nebraska mortgages are taxed only as real estate if executed since July 1, 1911, otherwise taxed as credits. Taxable at a low fixed rate: Iowa, Rhode Island. Exempt: California, Colorado, Connecticut, Delaware, District of Columbia, Idaho, Louisiana, Maine, Massachusetts, New Jersey, Utah, Washington, Wisconsin, Wyoming. Exempt on payment of license tax (see text) : Alabama, Michigan, Minnesota, New York. In New Hampshire mortgages secured by local real estate and bearing interest at a TAXATION OF INVESTMENTS 231 rate not greater than 5 per cent, are ex- empt. All others are taxable. Missouri and Nevada (see text). (b) Mortgages of Real Estate Located Outside the State Levying the Tax. Taxable : Alabama, Arizona, Arkansas, Colo- rado, Connecticut, Florida, Georgia, Illi- nois, Indiana, Kansas, Kentucky, Louisi- ana, Maine, Massachusetts, Michigan, Mis- sissippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Okla- homa, Oregon, Pennsylvania, South Caro- lina, South Dakota, Tennessee, Texas, Ver- mont, Virginia, West Virginia, Wyoming. Taxable at a low fixed rate : Iowa, Maryland, Minnesota, Rhode Island. Exempt: California, Delaware, District of Columbia, Idaho, Utah, Washington, Wis- consin. Exempt on payment of license fee: New York. Missouri (see text). Sec. 13. Commercial Paper. Taxable: Alabama, Arizona, Arkansas, Cal- fornia, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Mon- 232 INVESTMENT SECURITIES tana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia West Vir- ginia, Wyoming. Taxable at a low fixed rate: Iowa, Minnesota, Rhode Island. Exempt: Delaware, District of Columbia, Washington, Wisconsin. Certain notes are exempt (see text) : New Jersey, Pennsylvania. Missouri (see text). Bank Deposits. Sees. 14-16. Deposits in Banks Located in the State Levying the Tax. Taxable: Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wy- oming. Taxable at a low fixed rate: Iowa, Minnesota, Exempt: Alabama, Delaware, District of Columbia, Maryland, Washington, Wis- consin. TAXATION OP INVESTMENTS In Pennsylvania, all bank deposits bear- ing interest are taxable; while those sub- ject to check are exempt. In California, New Jersey and New York, deposits in state and national banks are taxable; while those in savings banks are exempt. In Connecticut, deposits in national banks are taxable, while those in savings banks are exempt; and deposits in state banks and trust companies are taxable if subject to check; otherwise exempt. In Massachusetts, deposits are treated the same as in Connecticut, except that the exemption in the case of trust company deposits is limited to a certain amount. Maine, New Hampshire, Vermont, Ehode Island (see text). Sec. 17. Deposits in Banks Located Outside the State Levying the Tax. Taxable: Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michi- gan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South 234 INVESTMENT SECURITIES Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wyoming. Taxable at a low fixed rate: Iowa, Minnesota, Rhode Island. Exempt: Alabama, Delaware, District of Columbia, Maryland, Washington, Wis- consin. New Jersey, Pennsylvania (see text). to