$538. Nevada. There is no special corporation tax. The property, real and personal, of corporations is taxed like that of individuals. 197 Personal property includes the capital stock of corporations, and is taxed where it is situated; 198 "Provided, That whenever any portion of the property of any such company shall be assessed and taxed in the county wherein the same is located, then, upon presentation, at the principal office of such company, of the certificate or receipt of the collector of said county that such taxes have been paid in another county, the same shall be deducted at the principal office from the aggregate amount of taxes imposed upon or paid by said county, for the same property, in the county wherein the principal office of said company is situated." 199 A license fee is required of mercantile corporations graded according to the average amount of sales, as follows: 200 Where the amount is not over $12,000, § 539. New Hampshire. $ 30 00 45 00 60 00 90 00 120 00 180 00 240 00 300 00 450 00 600 00 There is not taxation of corporations by the State. The real estate of corporations is locally taxable where it is situated; 201 and the personal property is taxable to the corpo 197 Const. Art. 8, § 2. 198 Nev. Comp. L. §§ 1082, 1084. 199 Ibid. § 1084. 200 Ibid. § 1192. 201 Nashua Savings Bank v. Nashua, 46 N. H. 389. ration at its location.202 "Stock in corporations . . . shall be taxed to the general owner thereof in the town in which he resides, if in this State; otherwise to the corporation in the town in which its principal office or place of business in the State is." 203 "No statute provisions shall be so construed as to subject any stock to double taxation." 204 As a result of these statutes, the stock having been assessed once to the stockholders, as it is held, cannot be assessed to the corporation,205 or vice versa; and therefore when the corporation has been assessed upon its tangible property, the amount must be deducted from the stock taxed in the hands of the stockholders. Foreign manufacturing corporations are taxed like similar domestic corporations.206 § 540. New Jersey. The taxation of all corporations, both foreign and domestic, in New Jersey includes both a local and a State tax. A franchise tax is assessed by the State upon ordinary domestic business corporations (but not on foreign corporations) under the following act: "All corporations incorporated under the laws of this state, other than those which are subject to the payment of a state franchise tax assessed upon the basis of gross receipts, shall pay an annual license fee or franchise tax of one-tenth of one per centum on all amounts of capital stock issued and outstanding 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-twentieth 202 N. H. Pub. Stat. ch. 56, § 9. 203 Ibid. § 7. 204 Ibid. ch. 55, § 9. 205 Nashua Savings Bank v. Nashua, 46 N. H. 389; Cheshire County Tel. Co. v. State, 63 N. H. 167. 206 N. H. Pub. Stat. ch. 148, § 21. of one per centum, and the further sum of fifty 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 railway, canal or banking corporations, or to savings banks, cemeteries or religious corporations, or purely charitable or purely educational associations not conducted for profit, or manufacturing or mining corporations at least fifty per centum of whose capital stock issued and outstanding is invested in mining or manufacturing carried on within this state, and which mining or manufacturing corporations shall have stated in the annual return to the state board of assessors where the mine or manufacturing establishment of such corporation or corporations is or are located, the character of the ores mined or the goods manufactured, the total amount of its capital stock embarked in the business of mining or manufacturing and the amount of capital stock actually employed in New Jersey in carrying on such mining or manufacturing business; if any manufacturing or mining company carrying on business in this state 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 so used in manufacturing or mining." 207 The tax laid by this act is a franchise tax, imposed for the privilege of transacting business in this State.208 "Although the amount to be paid is determined by the amount of the capital stock and the duration of the corporate 207 N. J. P. L. 1901, p. 31; Corp. Supp. § 150. 208 Evening Journal Ass. v. State Board, 47 N. J. L. 36, 54 A. R. 114; State v. Richards, 52 N. J. L. 156, 18 Atl. 582; Standard U. C. Co. v. Attorney General, 46 N. J. Eq. 270, 19 Atl. 733, 19 A. S. R. 394. life, yet these are only the criteria chosen by the legislature for ascertaining the probable value of the corporate franchise which the company assumed. The tax is not levied upon the corporate property or business. Such a tax may be collected by the state granting the corporate franchise, no matter how the property of the company may be invested or employed, or where it may be situate." 209 For this reason the tax is not subject to diminution because some of the capital of the corporation is invested in non-taxable property, such as patent rights.210 Therefore the tax does not violate the provisions of the State constitution 211 that "property shall be assessed for taxes under general rules, and by uniform rules, according to its true value; nor does such a tax upon a domestic corporation engaged in interstate commerce violate the Federal constitution.213 Of such a tax Garrison, J., said: " 212 "The franchise that is taxed as property is the privilege enjoyed by a corporation of exercising certain powers derived from the state, whereas the franchise with which we have to do is the right to exist in corporate form, without reference to the powers that, under such form, the company may exercise. . . . In this state we tax each of these so-called franchises. The former, as in the case of the right to own and operate a railroad, is taxed as property having a true value, which it is the duty of the state board to ascertain for the purposes of constitutional assessment. On the other hand, the naked right of existing in corporate form is taxed, as in the case before us, not at its true value, as it would have to be if it were property, but at a sum arbitrarily imposed by the 209 Dixon, J., in Honduras Commercial Co. v. Assessors, 54 N. J. L. 278, 23 Atl. 668. 210 Home Ins. Co. v. New York, 134 U. S. 594, 33 L. ed. 1025; Marsden Co. v. Assessors, 61 N. J. L. 461, 39 Atl. 638. 211 N. J. Const. Art. 4, § 7, cl. 12. 212 Standard Underground Cable Co. v. Atty. Gen., 46 N. J. Eq. 270, 19 Atl. 733, 19 A. S. R. 394. 213 Lumberville D. B. Co. v. Assessors, 55 N. J. L. 529, 26 Atl. 711. legislature as an annual fee, the amount of which is to be computed by reference to the capital of the company as a criterion. It is, in short, a poll tax levied upon domestic corporations for the right to be. Such a tax is not upon property or assets, and does not in any way concern the nature of the business the company may be authorized to carry on. If the business chance to be one of commercial intercourse with other states, the burden incidental to corporate existence does not, under the federal decisions just cited, constitute a regulation of that commerce." The local tax upon real and personal estate has not been superseded by the State franchise tax,214 and is required in addition to the State tax.215 A foreign corporation pays five per cent. upon the amount of gross receipts from business done in the State of New Jersey; provided that if the corporation can show that by the laws of its own State a less rate of taxation is exacted from New Jersey corporations doing business there, then the State Board of Assessors may readjust the assessment so as to conform to the rates imposed by such State. Foreign corporations authorized to do business in New Jersey file an annual report, showing the amount of gross receipts. For failure to file the report or to pay the tax the certificate of authority shall be revoked. "The provisions of this section shall not apply to any foreign manufacturing or mining corporation, at least fifty per centum of whose capital stock issued and outstanding is invested in mining or manufacturing carried on within this state, or if any such foreign manufacturing or mining company so carry on business in this State shall have less than fifty per centum of its capital stock issued and outstanding invested in manufacturing or mining business, carried on within this State, such company shall be entitled to have deducted from the basis of tax hereby imposed such proportion of its gross receipts as 214 Tide Water Pipe Co. v. Berry, 53 N. J. L. 212, 21 Atl. 490. 216 N. J. 1896, ch. 185, § 110. |