per cent. upon such proportions, being not less than ten dollars.331 This obligation continues until the corporation files a certificate that it has retired from business.332 Certain public service and insurance companies are not subject to this provision.333 This statute has been held constitutional.33 334 $ 548. Oklahoma. There is no franchise tax. The property tax is the same as that of individuals. Taxable property includes "all moneys, notes, credits or investments in bonds or stocks owned by joint stock companies or otherwise, of persons residing in this Territory, the property of corporations now existing or hereafter created, and the property of all banks." 335 "Depreciated bank notes and depreciated stocks or shares in corporations or companies may be listed at their current value and rate; credits shall be listed at such sums as the person listing them believes will be received or can be collected." 336 § 549. Oregon. Corporations both domestic and foreign pay a franchise tax, and a tax on property. Personal property, in the tax laws, includes "stocks or shares in all incorporated companies, and such portion of the capital of incorporated companies liable to taxation on their capital as shall not be invested in real estate." 337 Real estate is taxed where it lies, like the real estate of individuals.338 Merchandise kept for sale and capital, stock and machinery for manufacture or other business within the State owned by a 331 Oh. L. 1902, p. 124, § 2. 332 Ibid. § 8. 333 Ibid. § 7. 334 Southern Gum Co. v. Laylin, 66 Oh. S. 578, 64 N. E. 564. 335 Okl. Stat. § 5577. 336 Ibid. § 5596. 337 Or. Misc. L. § 2731. 338 Ibid. § 2739. domestic or foreign corporation is taxable where it is.339 The personal property of a corporation is assessed at its principal place of business, 340 A franchise tax is imposed as follows: "Every corporation organized or formed under, by, or pursuant to the laws of this State, whether now existing or hereafter created, and every foreign corporation, joint stock company, or association, now doing business in this State, or that may hereafter do business in this State, except fire, marine, fire and marine, life, accident, life and accident, plate glass and steam-boiler insurance companies, and surety companies, shall, during the month of June of each year, and on or before the first day of July of each year, furnish to the Secretary of State, upon blanks to be supplied by him, a correct statement, sworn to by one of the officers of such corporation, or the managing agent or authorized attorney in fact in this State of any foreign corporation, joint stock company, or association, before an officer duly authorized to administer oaths, setting forth the name of the corporation, joint stock company, or association, the location of its principal office, the names of the president, secretary, and treasurer, with the post office address of each, date of the annual election of directors and officers of such corporation, joint stock company, or association, the amount of authorized capital stock, the number of shares and par value of each share, the amount of capital stock subscribed, the amount of capital stock issued, and the amount of capital stock paid up. Every foreign corporation, joint stock company, or association shall include in such statement the names and post office addresses of its managing agent and attorneys in fact in this state. Every such corporation, joint stock company, or association, foreign as well as domestic, shall pay an annual license fee in proportion to the amount of its authorized capital stock as follows, to wit: If such capital stock shall not exceed $5,000, an annual license 330 Ibid. § 2742; Or. 1901, p. 153. 340 Or. Misc. L. § 2744. fee of $10; if such capital stock shall exceed $5,000 and shall not exceed $10,000, an annual license fee of $15; if such capital stock shall exceed $10,000 and shall not exceed $25,000, an annual license fee of $20; if such capital stock shall exceed $25,000 and shall not exceed $50,000, an annual license fee of $30; if such capital stock shall exceed $50,000 and shall not exceed $100,000, an annual [license] fee of $50; if such capital stock shall exceed $100,000 and shall not exceed $250,000, an annual [license] fee of $70; if such capital stock shall exceed $250,000 and shall not exceed $500,000, an annual license fee of $100; if such capital stock shall exceed $500,000 and shall not exceed $1,000,000, an annual license fee of $125; if such capital stock shall exceed $1,000,000 and shall not exceed $2,000,000, an annual license fee of $175; if such capital stock shall exceed $2,000,000, an annual license fee of $200. The amount of the authorized capital stock of every corporation, joint stock company, or association shall be determined by its articles of incorporation, or amendments or supplementary articles of incorporation, charter, declaration, report, or statement filed with the Secretary of State, as in this act provided. . . . The annual license fee required by this section shall be paid in advance for the fiscal year beginning July 1st of each year, and in case of new corporations formed or entering the State during the fiscal year, the first year's fee shall be proportionate to such fraction of a year.' § 550. Pennsylvania: general principles. 1341 A corporation in Pennsylvania pays taxes both locally and to the State. The local taxation of a corporation is like that of an individual, and includes taxes on tangible property. Public service companies however are, not by statute but by judicial decision, exempt from local taxation on property used in their business, except that by statute the real estate of railroads is 341 Or. 1903, p. 43, § 5. subject to local taxation in Philadelphia and Pittsburgh. This class of corporations includes railroad, canal and telegraph companies, natural and artificial gas companies, water companies, electric light companies, street railway and traction companies, etc.342 The so-called "personal property tax" is a State tax, but is assessed and collected locally. By the provisions of the statute, a tax of four mills on each dollar is paid on mortgages, bonds, shares of stock, and other debts owned by the person taxed, except shares of stock in corporations which pay the capital stock tax. But corporations paying the capital stock tax are exempted from the payment of the "personal property tax." 343 § 551. Pennsylvania: tax on capital stock. The ordinary tax imposed by the State upon corporations is that upon the capital stock. By the provisions of the Act, the officers of every corporation incorporated under any law of Pennsylvania, and of every foreign corporation doing business in and liable to taxation within the Commonwealth, except banks and insurance companies, shall make a report, stating the amount of authorized and paid-in capital, the number and paid-in value of shares, gross and net earnings, surplus and dividends, and average price of stock during the year; with an estimate of the value of the capital stock, not less than the average price for which the stock has sold, and not less than the value indicated by the net earnings. The Auditor General and the State Treasurer may revise this valuation. Upon this valuation the corporation shall pay an annual tax at the rate of five mills upon each dollar. Such corporations shall not be required to pay any further tax upon mortgages, bonds, and other securities owned by them in their own right. The provisions of this section shall not apply to the capital 342 Eastman, Private Corporations in Pennsylvania, § 655. 843 Pa. P. L. 1889, p. 420, §§ 1, 2. stock of manufacturing companies which is actually used in manufacture within the State (except brewing and distilling companies, and such as exercise the right of eminent domain).344 The tax on the capital stock is a tax on property, including its franchises.345 The question of the actual value in cash of the capital stock is a question of fact, which must be determined by considering the value of defendant's tangible property and assets of every kind, including its bonds, mortgages, and moneys at interest, and its franchises and privileges, and the amount of the incumbrances on its property and franchises is also a relevant fact to be considered, but it is not to be specifically deducted from the valuation so ascertained and determined.3 346 The assessed value of the real and personal property is one element to be considered, but only one. The indebtedness, as has been seen, was for consideration; "also the earnings, net and gross, the franchises, and all the facts tending to establish the actual value of the capital stock." 347 In the Capital Stock Cases 348 three judges of the Supreme Court dissented from the opinion that the tax was upon the property of the corporation. "It is to be taxed at its 'actual value in cash, not less however than the average price which said stock sold for during said year,' etc. The officers of the corporation concerned are required to make sworn returns under 17 specific heads, all of which tend to show the value of the stock as such, and not a single one of which refers directly or indirectly to the value of the property which such stock represents. The value of the capital stock in the hands of the shareholders is the value of their resulting interest in the property of the corporation subject to its debts and incum344 Pa. P. L. 1893, p. 353, § 1. 345 Com. v. Standard Oil Co., 101 Pa. 119; Com. v. New York, P. & O. R. R., 188 Pa. 169, 41 Atl. 594, and cases cited. 346 Com. v. New York, P. & O. R. R., 188 Pa. 169, 41 Atl. 594. 347 Com. v. Manor Gas Coal Co., 188 Pa. 195, 41 Atl. 605. 348 Com. v. New York, P. & O. R. R., 188 Pa. 169, 41 Atl. 594. |