part thereof; on the excess over $50,000 to $75,000, 30 cents on each $1,000, or fractional part thereof; on the excess over $75,000 to $125,000, 25 cents on each $1,000, or fractional part thereof; on the excess over $125,000, 20 cents on each $1,000, or fractional part thereof.

Every person mentioned in this section shall within ten days after the first day of January in each year, deliver to the Clerk of the Board of County Commissioners a sworn statement of the amount of his gross sales for the twelve months or any part of said time prior thereto as per schedule made above, stating within which class his sales come. . . . It shall be the duty of the Sheriff to collect from every person on said list furnished him by the clerk as aforesaid the taxes embraced therein.

The Board of County Commissioners shall have power to require the merchant or dealer making his statement to submit his books for examination to them."' 317

§ 546. North Dakota.

There is no franchise tax. The real and personal property of corporations is taxed like that of individuals, including the property of foreign corporations. "All real and personal property in this state, and all personal property of persons or of corporations residing or doing business therein, and the property of corporations now existing or hereafter created

is subject to taxation, and such property or the value thereof shall be entered into the list of taxable property." " 318 "Personal property includes . . . all stock in turnpikes, railroads, canals and other corporations, except national banks out of the State, owned by the inhabitants of this State; all personal estate of moneyed corporations, whether the owner resides in or out of the State . . . all shares of stock in any bank organized or that may be organized under any law of the United States or of this State; and all improvements made by persons upon lands . . . and the improvements of any other

317 Ibid. § 67.

318 N. Dak. 1897, ch, 126, § 2.

corporation whose property is not subject to the same mode and rule of taxation as other property." 319

The personal property of a corporation is assessed, and also its capital stock. The statement made by the corporation to the assessor shows the amount of authorized and paid-up capital stock, the number and market value of the shares, the amount of indebtedness (excluding indebtedness for current expenses), and the value of its real and personal property. The sum of the value of its real and personal property and of its indebtedness is subtracted from the total value of its shares; and the remainder is taxed as "stocks." 320

§ 547. Ohio.

The corporation pays a tax upon its property, and also a franchise tax.

The Constitution requires that the corporation shall be taxed upon its property.

"The property of corporations, now existing or hereafter created, shall forever be subject to taxation, the same as the property of individuals." 321 This includes foreign intangible property of Ohio corporations. 322 This property cannot be taxed doubly.323

All property whether real or personal in this State, and whether belonging to individuals or corporations, and all moneys, credits, investments in bonds, stocks, or otherwise, of persons residing in this State, shall be subject to taxation, except only such as may be expressly exempted therefrom.324 "The president, secretary, and principal accounting officer of

319 Ibid. § 4.

320 Ibid. § 25. On the deduction of indebtedness, see the corresponding provision in Minnesota, held unconstitutional; ante, § 533.

321 Oh. Const. Art. 13, § 4.

322 Oh. Rev. Stat. § 2731.

323 Oh. Const. Art. 12, § 2.

324 Oh. Rev. Stat. § 2731. Exemptions of institutions of public charity in the State cannot be taken advantage of by foreign charitable corporations. Humphreys v. State, 70 N. E. 957.

every canal or slackwater navigation company, turnpike company, plank road company, bridge company, insurance company, telegraph company, or other joint stock company, except banking or other corporations whose taxation is specifically provided for, for whatever purpose they may have been created, whether incorporated by any law of this state or not, shall list for taxation, verified by the oath of the person so listing, all the personal property, which shall be held to include all such real estate as is necessary to the daily operations of the company, moneys and credits of such company or corporation within the state, at the actual value in money, in the manner following: In all cases return shall be made to the several auditors of the respective counties where such property may be situated, together with a statement of the amount of said property which is situated in each township, village, city, or ward therein. The value of all movable property shall be added to the stationary and fixed property and real estate, and apportioned to such wards, cities, villages or townships, pro rata, in proportion to the value of the real estate and fixed property in said ward, city, village or township, and all property so listed shall be subject to and pay the same taxes as other property listed in such ward, city, village, or township.” 325 Besides this property tax, a franchise tax is exacted by the State from domestic corporations.

Every domestic corporation for profit shall annually report to the Secretary of State, among other things, the amount of its capital stock authorized and issued. The corporation shall pay annually a fee of one-tenth of one per cent. upon the subscribed or issued and outstanding capital stock, not less than ten dollars.326

This is not a tax on property, and the exaction of it in addition to the regular property tax is therefore not double taxation.327

325 Ibid. § 2744.

328 Oh. 1902, p. 124, § 1.

327 Southern Gum Co. v. Laylin, 66 Oh. St. 578, 64 N. E. 564.

"A domestic corporation is given life and continued existence by the state, and this life and existence, with their accompanying powers, constitute the franchise; and, this franchise being valuable and given by the State, the State may impose a franchise tax thereon to the amount of the value thus conferred and continued, the same as, in taxation by assessment, the public first bestows a special benefit upon the property, and then takes back, by way of assessment, a part or all it has thus conferred.328 A foreign corporation can do business in this State only upon such terms and conditions as the State may impose, and therefore a franchise tax may be imposed upon a foreign corporation for the privilege of doing business in this State. It therefore follows that a franchise tax may be imposed on both domestic and foreign corporations alike. An excise tax may also be imposed on corporations to compensate the State for the additional burden sustained by the State and the people by reason of property being held by artificial bodies, the persons comprising such bodies being exempt from liability to a great extent for the debts thereof. This ground. of excise taxation was recognized in Adler v. Whitbeck,329 and was there applied to the liquor traffic, because that business was there shown to impose additional burdens upon the State. So the aggregation of capital by corporations imposes additional burdens, and requires regulations not applicable to individuals.

"It is urged, and truly, that the capital paid in by the stockholders becomes invested in property, and that taxes are paid thereon the same as individuals pay upon their property. Then it is urged, secondly, that this exaction of one-tenth of 1 per cent. on the subscribed or issued and outstanding capital stock is an additional tax on the same property or capital, and that thereby double taxation results. But this second proposition is not true, because the exaction of one-tenth of 1 per cent. is not a property tax on property owned by the 328 Walsh v. Barron, 61 Oh. St. 15, 55 N. E. 164, 76 A. S. R. 354. 329 44 Oh. St. 539, 9 N. E. 672.

corporation, but is an excise tax, the amount of which is fixed and measured by the amount of subscribed or issued and outstanding capital stock. To constitute double taxation, both taxes must be property taxes, and both on the same property. Here one tax is a property tax, and the other an excise or franchise tax, and therefore there is no double taxation. The limitation in section 4 of article 13 of the constitution, which prohibits double taxation of the property of corporations, applies only to taxation on property, and not to taxation of privileges or franchises. . .

"The stock of a corporation is not its property, and is not owned by it, but by the several stockholders. It owes, and not owns, the stock. The stock is a liability of the corporation, and not an asset; and, being a liability, it cannot be taxed, because in property taxation the tax must be upon the true value in money, and a liability can have no such value. So that this exaction of one-tenth of 1 per cent. is not a tax against the corporation on stock owned by it, but is a franchise tax, the amount of which is fixed and graded by the amount of subscribed or issued and outstanding capital stock." 330

Every foreign corporation for profit doing business in Ohio and owning or using a part or all of its capital or plant in the State, and subject to compliance with § 148c of the Revised Statutes, shall in addition to the statements required by § 148c and 148d of the Revised Statutes make a similar report annually, containing the amount of capital stock authorized and issued, the nature and place of business both within Ohio and outside, and the value of its property owned and used both within and outside Ohio. The Secretary of State shall determine the proportion of the authorized capital stock represented by property owned and used and business transacted in Ohio, and shall collect from the corporation for the privilege of exercising its franchises in Ohio, annually one-tenth of one

330 Burket, J., in Southern Gum Co. v. Laylin, supra.