[Chap. XXII. taxable government securities is so firmly established by judicial determination that it is not now to be considered an open question." 49

§ 517. Delaware.

There is no tax on the ordinary personal property of the corporation. Domestic corporations pay an annual franchise tax to the State, but foreign corporations do not pay this tax. For the purpose of assessing this tax certain returns are required to be made annually to the Secretary of State; but these returns include no financial statement of any kind. In the case of certain public-service and insurance company this report shows the amount of gross receipts. "Every other corporation shall file with the Secretary of State on or before the first day of January in each year an annual report, which shall state the location of its principal office in this State; the names of its officers, the amount of its authorized capital, the amount actually paid in, the amount invested in real estate, the tax annually thereon and the amount invested in manufacturing or mining in this State, or both." 50

"All other corporations hereafter incorporated under the laws of this State, and not hereinbefore provided for shall pay an annual license fee or franchise tax of one-twentieth of one per centum on all amounts of capital actually paid in up to and including the sum of three million dollars; on all sums of capital stock issued and outstanding in excess of three million dollars and not exceeding five million dollars, an annual license fee or franchise tax of one-fortieth of one per centum and the further sum of thirty dollars per annum per one million dollars or any part thereof, on all amounts of capital stock, issued and outstanding in excess of five million dollars; Provided that this Act shall not apply to railroad, railway,

49 Pardee, J., in Batterson v. Hartford, 50 Conn. 558, 560, citing Van Allen v. Assessors, 3 Wall. 573, 18 L. ed. 229; People v. Comrs., 4 Wall. 244, 18 L. ed. 344; Nat. Bank v. Com., 9 Wall. 353, 19 L. ed. 701. 50 Del. 1901, ch. 15 (Franchise Tax Law), § 2.

canal or banking corporations, or to savings banks, cemeteries or religious corporations, or to purely charitable or educational associations, or manufacturing or mining corporations, or to any mercantile corporation whose capital actually paid in is invested in a mercantile business carried on within this State, and which is now subject to a license tax for the carrying on of said business under Chapter 117, Volume 13, Laws of Delaware, or to any corporations at least fifty per centum of whose capital stock issued and outstanding is invested in business carried on within this State, and if any other corporation shall have less than fifty per centum of its capital stock issued and outstanding invested in business carried on within this State, such company shall pay the annual license fee or franchise tax herein provided for companies not carrying on business in this State, but shall be entitled in the computation of such tax to a deduction from the amount of its capital stock issued and outstanding of the assessed value of its real and personal estate within this State.51

There is a provision for retaliatory taxation upon foreign corporations.52

"The provisions of this Act shall not apply to corporations heretofore incorporated and the property of such corporations is hereby made exempt from taxation under the provisions of this Act, such exemption, in the opinion of the General Assembly, being best to promote the public welfare.” 53

The stockholders are taxed upon "stocks of every kind." The president and secretary of all corporations liable to taxation under the act return to the assessor of the district where the principal office is situated the number, market value and real value of the shares, and the names of the owners. The assessment is to be laid at three-fourths of the actual cash value, and the rate of taxation is thirty cents on each one. hundred dollars. Provision is made by which a debtor of a

51 Ibid. § 4. 52 Ibid. § 9. 53 Ibid. § 19.

non-resident creditor must pay the tax and deduct the amount from the interest; but the constitution provides that shares of stock in Delaware corporations are not taxable when owned abroad.54

518. District of Columbia.

There is no charter fee or franchise tax, but a special ad valorem tax on the entire capital stock.

The capital stock of all corporations other than those herein provided for, organized in the District of Columbia or under the laws of any of the States or Territories of the United States, chiefly for the purpose of, and transacting business within, the District of Columbia, except those exempted by the laws relating to the District of Columbia, is appraised in bulk at its fair cash value by the board of personal-tax appraisers, and the corporation issuing the same is liable for the tax thereon. according to such value, and must pay a sum equal to 11⁄2 per cent. on the assessed valuation thereof; but from the assessed valuation of such capital stock is first deducted the value of any and all real estate owned by such corporation in said District, which real estate is separately taxed against said corporation. This does not include newspaper, real estate, and mercantile companies, which by reason of incorporation receive no special franchise or privilege; but all such corporations are rated, assessed, and taxed as individuals conducting business in similar lines are rated, assessed, and taxed.

Each national bank, as the trustee for its stockholders, through its president or cashier, and all other incorporated banks and trust companies in the District of Columbia, through their presidents or cashiers, and all gas, electric lighting, and telephone companies, through their proper officers, must make affidavit to the board of personal-tax appraisers on or before the 1st day of August each year as to the amount of its or their gross earnings for the preceding year ending the 30th day of June, and must pay per annum on such gross earnings 54 Del. 1898, ch. 25; Const. Art. 9, § 6.

as follows: Each national bank and all other incorporated banks and trust companies, respectively, 6 per cent.; each gas company, 5 per cent.; each electric lighting and telephone company, 4 per cent. And in addition there to the real estate owned by each national or other incorporated bank and each trust, gas, electric lighting, and telephone company in the District of Columbia is taxed as other real estate in said District. Street railroad companies pay 4 per cent. per annum on their gross receipts and other taxes. Insurance companies pay 11 per cent. on premium receipts.

All companies who guarantee the fidelity of any individual or individuals, such as bonding companies, pay 11 per cent. of their gross receipts in the District of Columbia.

Savings banks having no capital stock and paying interest to their depositors must, through their president or cashier, make affidavit to the board of personal-tax appraisers on or before the 1st day of August in each year as to the amount of their surplus and undivided profits and pay a sum equal to 1 per cent. on the amount of their surplus and undivided profits on the 30th day of June preceding.

Building associations pay to the collector of taxes of the District of Columbia, 4 per cent. per annum on their gross earnings for the preceding year ending June 30.55

$519. Florida.

There is no franchise tax. The corporation is taxed upon its property, both real and personal, like an individual. It is provided that "the owner or holder of stock in any incorporated company . . . which is taxed on its capital shall not be taxed as an individual for such stock; provided that such stock is returned for assessment by such company." 56 From which it seems that the corporation is taxed upon the total value of its shares as capital stock.

License taxes are imposed by the State on persons who

55 32 U. S. Stat. p. 619.

56 Fla. Rev. Stat. Append. ch. 4010, § 8.

engage in certain forms of business. Counties, cities and towns may impose further taxes of the same kind when the business is carried on within the county, city or town, but only on a business taxed by the State, and the local tax must not exceed fifty per cent. of the State tax. "Merchants, storekeepers and druggists with a capital stock of less than five hundred dollars shall pay a license tax of three dollars; from five hundred to one thousand dollars, shall pay a license tax of five dollars, and from one thousand dollars to five thousand dollars, ten dollars, and over five thousand dollars, fifteen dollars, in each county and for each place of business." 57

§ 520. Georgia.

There is no franchise tax. A corporation is taxed on its property, both by the State and locally, like an individual. All real and personal estate, whether owned by individuals. or corporations, resident or non-resident, is liable to taxation.58 Bonds, notes, or other obligations for money, on persons in other States or of other States, or bonds of corporations of other States, and shipping, are the subject of return and taxation in this State.50 All moneyed or stock corporations are liable to taxation.60 Besides State taxes, county and municipal taxes are levied; the latter limited to one-half of one per cent. ad valorem.61 In addition to the ad valorem tax on property, a license fee on business may be imposed.62

The capital stock, it has been held, is not property, nor taxable as such; but in so holding the court has in mind the shares of stock.

"The municipal government of the city of Macon may tax all property owned by the Macon Construction Company, and all the capital that company may actually employ, within the 57 Ibid. § 10.

58 Ga. Code, § 767.

59 Ibid. § 776.

60 Ibid. § 777.

61 Ibid. § 719.

62 Carson v. Forsyth, 94 Ga. 617, 20 S. E. 116.