amount of land occupied and used by a canal or used as a public highway, at the time of such assessment, and if he fails to do so, the county auditor may make such deductions. (R. S. Sec. 2792.)

For canals, see appendix, § 13997, et seq.

Assessment of mineral lands; increase of value reported; decrease of value reported; manner of listing for taxation.

SEC. 5562. At the time of making the lists of personal property, the assessor shall make a list of petroleum, oil, and natural gas wells, coal and ore mines, limestone quarries, fire-clay pits, or works of any kind designed for the production of minerals of any kind, which have been begun or constructed since the last preceding quadrennial appraisement. If, by reason of the discovery of such minerals, the construction of such works, the commencement of such operations, or the development of such minerals, or otherwise, within the year, the value of the lands containing or producing such minerals, or any of them, or the value of any right to such minerals, listed and taxed separately from such lands, shall increase in value to the amount of one hundred dollars or more, the assessor shall increase the assessment of such land or right to the minerals therein to its true value in money in the name of the owner thereof. If the assessor finds that rights to minerals contained or produced in or upon any lot or parcel of land has been previously created and not separately assessed for taxation, he shall report the same, together with his aggregate valuation of the lot or parcel and the right or rights to minerals therein, to the county auditor, who shall apportion such aggregate valuation as provided' in Section 5563 of the General Code. If the value of any lot or parcel of land containing or producing petroleum, oil, natural gas, coal, ore, limestone, fire-clay, or other minerals, or of any right to the minerals therein, shall decrease within the year, by reason of the exhaustion of any such minerals or by the failure to find or develop such minerals, the assessor shall determine, as nearly as may be practicable, how much less valuable such lot or parcel is in consequence of such exhaustion or failure to find or develop, in case the fee of the soil and the right to the minerals is owned and assessed for taxation against the same person, and make return thereof to the county auditor; where the title to the fee of the soil is in one or more persons, and the right to the minerals therein, or any of them, is in another person, the assessor shall determine, as nearly as practicable, how much less valuable such right to the minerals therein is by reason of such exhaustion or failure to find or develop, and make return thereof to the county auditor. If the county auditor finds that the value of any such lot or parcel of land or any such right to the minerals therein has decreased to the amount of one hundred dollars or more, by reason of such exhaustion or of such failure to find or develop, he may reduce the valuation of such lands or of such rights to the minerals therein, as the case may be, so as to place such valuation at its true value in money. (As amended, 102 v. 89.)

The power to value mineral rights, rests by section 5562, General Code, as amended 102 O. L. 89, in the personal property assessor who shall value such rights annually, and the valuation so fixed shall be final for the year.

When, therefore, after valuation by the assessor and before the time for payment of taxes, knowledge is acquired of the lessened value of such mineral rights, neither the county auditor nor the board of equalization may reduce the valuation so fixed.

The same rule applies even though by the terms of lease or contract, the ownership of the mineral rights be automatically relinquished by the discovery of the absence of minerals, and the mineral rights will nevertheless remain on the tax list. A. G. R. 1911-1912, p. 689.

Apportionment of assessed valuation by county auditors.

SEC. 5563. Where the fee of the soil and the minerals, or part of either, of a lot or parcel of land has been previously assessed for taxation in the name of the same person, but the title to the fee of the soil is in one or more persons, and the title to such minerals, or any of them, or any right to the minerals therein, or any of them, is in another person, the county auditor shall ascertain from the returns made to him by the assessor as provided in Section 5562 of the General Code, or from any other source of information at his command, the aggregate value of such lot or parcel of land and the minerals or rights thereto, and shall equitably divide and apportion such aggregate valuation between the owner or owners of the fee of the soil and the owner or owners of such minerals and rights thereto so held separately from the fee of the soil, according to the relative value of the interests so held by such owners of the fee of the soil and such minerals or rights thereto, respectively. (As amended, 102 v. 89.)

Examination of buildings.

SEC. 5564. For the purpose of enabling the assessor to determine the value of buildings and other improvements, he shall enter, with the consent of the owner or occupant thereof. and fully examine all buildings and structures of every kind, which are by this title either liable to or exempt from taxation. (R. S. Sec. 2793.)

Plats presented to auditor for assessment.

SEC. 5568. When any person lays out a village or city, or any addition thereto, before the plat thereof is recorded, he shall present it to the county auditor, who shall cause the assessor of the proper locality to assess and return the true valuation of each lot or parcel of land described in such plat in like manner as new structures are valued. Thereupon such lots or parcels shall be entered on the tax list in lieu of the land included therein. In making such valuations, regard shall be had to the next preceding quadrennial valuation of real estate, so that the said lots shall, as near as practical, be equalized with adjacent lands and lots according to such quadrennial valuation. (R. S. Sec. 2797.)

This section applies to plats of land within the limits of the municipal corporation, as well as to land without such limits: Mitchell v. Treasurer, 25 O. S. 143. Land which is embraced within the lines of streets is not to be listed for taxation: Commissioners v. Albers, 8 O. C. C. (N. S.) 558, 18 O. C, D. 830. Upon revaluation, the assessor may fix the valuation upon the lots the aggregate of which exceeds the valuation placed upon the land before it was platted into lots: Davis v. Commissioners, 8 O. C. C. (N. S.) 502, 18 O. C. D. 817.

Contra: That the board of equalization or the assessor cannot impose a valuation upon the lots the aggregate of which will exceed the former valuation by the acre; at least if such former valuation was fair and reasonable: Ransom v. Potter, 22 O. C. C. 388, 12 O. C. D. 478.

Return of exempted real estate.

SEC. 5570. An assessor, at the time of making the assessment of real property subject to taxation, shall enter in a separate list pertinent descriptions of all burying grounds, public school houses, houses used exclusively for public worship, institutions of purely public charity, and public buildings and property used exclusively for any public purpose, with the lot or tract of land on which such house, institution or public building is situated, and which are exempt from taxation. He shall value such houses. buildings, property, and lots and tracts of land at their true value in money, in like manner as he is required to value other real property, designating in each case the township, city or village, and number of the school district, or the name or designation of the school, religious society, or institution to which each house, lot, or tract belongs. If such property is held and used for other public purposes, he shall state by whom or how it is held. (R. S. Sec. 2799.)

SEC. 5404. The president, secretary, and principal accounting officer of every incorporated company, except banking or other corporations whose taxation is specifically provided for, for whatever purpose they may have been created, whether incorporated by a law of this state or not, shall list for taxation, verified by the oath of the person so listing, all the personal property thereof, and all real estate necessary to the daily operations of the company, moneys and credits of such company or corporation within the state, at the true value in money. (R. S. Sec. 2744.)

For canals, see appendix, § 13997, et seq.

Express, telegraph and telephone companies expressly taken out of this section, see G. C. § 5449 (102 v. 224), et seq.

Also sleeping car companies, see G. C. § 5462 (102 v. 224), et seq.

Also freight lines and equipment companies, see G. C. § 5462 (102 v. 224), et seq. This section includes all corporations except banking corporations unless some specific provision is made by statute for the taxation of corporations of that class, whether they are organized in Ohio or not: Telegraph Co. v. Poe, 61 Fed. 449, 8 O. F. D. 158.

That the necessary real property of an insurance company is to be regarded as personal property under this section, see Insurance Co. v. Bowland, 196 U. S. 611, 14 O. F. D. 543, 2 O. L. R. 515.

Securities which a foreign insurance company is required to deposit with the insurance commissioner, in order to be permitted to do business in this state, constitutes personal property of such corporation within this state, and, accordingly, are taxable: Sims v. Best, 1 0. C. C. (N. S.) 41, 15 O. C. D. 149; Insurance Co. v. Bowland, 196 U. S. 611, 14 O. F. D. 543, 2 O. L. R. 515; Assurance Co. v. Halliday, 110 Fed. 259, 13 O. F. D. 682; Assurance Co. v. Halliday, 126 Fed. 257, 61 C. C. A. 271, 14 O F. D. 73, 1 O. L. R. 643; Assurance Co. v. Halliday, 127 Fed. 830, 14 O. F. D. 305.

An Ohio mutual insurance company, also doing business in other states, should, under this and the following sections, list for taxation in Ohio not only its property within the state, but also its assets, whether in the form of notes or cash balances in the hands of agents in other states. The fact that such company in order to do business in other states may be subjected to a franchise tax, or a tax for permission to do business in a state, does not constitute double taxation or relieve the company from taxation of such assets or personal property in Ohio: Ohio Farmers Ins. Co. v. Hard, 8 O. N. P. 36, 10 O. D. (N. P.) 469.

An insurance company must list for taxation its notes for unpaid balances on stock subscriptions: Insurance Co. v. LaRue, 22 O. S. 630.

Reinsurance is not in legal effect a debt, and, accordingly, cannot be deducted by an insurance company from its credits: Insurance Co. v. Cappellar, 38 O. S. 560.

The term "personal property" in this section includes bonds of municipal corporations, except such as are specifically exempt by the constitution and statutes of this state: Assurance Co. v. Halliday. 126 Fed. 257, 61 C. C. A. 271, 14 O. F. D. 73, 1 0. L. R. 643, Assurance Co. v. Halliday, 127 Fed. 830, 14 O. F. D. 305.

Chose in action, whether notes or book accounts, which belong to foreign corporations, which arise out of business done in this state, and which are kept in this state, are subject to taxation here: Hubbard v. Brush, 61 O. S. 252.

A franchise is not property, and, accordingly, cannot be taxed as property: Bank v. Hines, 3 O. S. 1.

Capital stock is property in which capital is invested for business, and a return of such property should be made by such corporation under this section: Scott v. Smith, 2 O. N. P. (N. S.) 617, 15 O. D. (N. P.) 590.

The capital of a corporation, in whatever form it may be invested, and the shares of stock owned by the stockholders, are distinct species of property: Bradley v. Bauder, 36

O. S. 28.

Sections 5404 and 5405, General Code, providing for the return to the county auditor, by corporations, of all personal and real property, are not exclusive provisions in the sense that they exclude such portions of chapter three of the title in the General Code, relating to taxation, as may be applicable to corporations.

A corporation, obliged to return all its personal property under 5404, General Code, which is engaged in the manufacturing business, must return, upon an average basis, so much of its property as is engaged in process of manufacture, in the manner specified in 5385 and 5386, General Code.

As to the articles manufactured by a corporation in this state and sent to a warehouse in another county to be stored, the rule is adhered to that the stock stored in the warehouse should be separately listed at the place where stored. A. G. R. 1912, p. 612.

Section 5404 of the General Code, in providing for the tax of credits existing in Ohio, belonging to non-resident corporations, does not violate Article XIII, Section 4 of the Constitution of Ohio, providing that the property of corporations shall be taxed the same as individuals, for the reason that the credits of non-resident private persons may also be taxed through resident agents.

Credits of a non-resident corporation may be taxed in Ohio, only when they are "localized" by being committed to the charge and management of an agent or other representative who is more than a mere custodian or collector and who has power to deal in a managerial capacity with the fund represented by the credit.

A corporation cannot have a legal residence apart from its domicile and it conducts business in states other than the state of its incorporation, only through agencies.

The "constituent acts," that is, those acts which are necessary to the organization and existence of the corporation itself or its final dissolution, must be performed within the limits of the sovereignty which creates the corporation. Its other business may be conducted in other jurisdictions through its officers acting as agents. The state in which such other business is done, therefore, may tax such credits as are "localized" therein, that is, such as are fully and completely controlled and managed therein, and if all of the business except the "constituent" acts are so managed and controlled therein, the property used in and the credits growing out of such business, may be taxed therein.

A state may also tax all debts due a non-resident corporation from resident debtors regardless of the place where the debt was contracted. A. G. R. 1912, p. 547.

On the authority, Hubbard vs. Brush, 61 O. S. 252, a foreign corporation having an agency in this state and a stock of goods and machinery located at such agency, is not entitled under the tax laws to deduct from the sum of all its legal claims arising from the sale of such goods and machinery in this state, the legal bona fide debts owing by such corporation regardless of whether such debts are related to the goods sold and the business done in the state of Ohio.

Such corporation may deduct from its credits, under the control and management of the Ohio agency, arising from the sale of goods and machinery in this state, its legal bona fide, debts which are related to the business conducted in Ohio, but not those debts which are related merely to the goods owned by the corporation in Ohio.

Debts therefore, created by the corporation at its domicile in the general purchase of goods, part of which are consigned to the Ohio agency for sale, are not deductible."

Debts so created, however, solely for and on account of the goods to be sold in Ohio may be deducted. A. G. R. 1912, p. 608.

The statutes of Ohio are to be construed to effect that credits may be taxed only against residents of this state and against non-residents who actually loan and hold moneys loaned through an agent acting in this state.

The rule, however, is narrowed with reference to corporations under section 5404, General Code, which renders credits as well as other forms of personal property taxable to all corporations at the place in this state where the credits are held regardless of corporate residence. A. G. R. 1911-1912, p. 630.

Where a foreign corporation has its manufacturing establishments and principal managerial offices in other states, but maintains in Ohio a selling agency which manages the business of selling products of the corporation, keeping a stock of its goods on hand, directing the activities of traveling salesmen and other solicitors, and extending credit to customers, the credits arising from such business are taxable to the company in Ohio.

Under the above facts, and the goods received by the Ohio agency and held in stock by it not being charged to it by the home company, so that there is no relation of debtor and creditor existing on account of the delivery of such goods to the Ohio agency, the debts which the corporation may deduct from the claims and debts payable to the Ohio agency for the purpose of arriving at the amount of the taxable credits, are such debts as are attributable solely to the Ohio agency and its business, and those only; that is, the debts which may be deducted are those which are incurred by the Ohio agents themselves, or by the home office, for and on behalf of the Ohio agency, and with direct reference to the business of the agency. The company may not deduct all debts owing to it from Ohio debtors, as such, nor a proportional share of the entire indebtedness of the company, determined by the amount of sales of Ohio agents as computed with the total sales of the company everywhere. A. G. R. 1914, p. 1578.

Taxable Ohio municipal bonds deposited with the treasurer of state by foreign trust companies as security for the execution of trusts in this state, are subject to taxation. A. G. R. 1914, p. 1197.

The county auditor may require a corporation to fill out blanks containing questions relating to real estate, credits, moneys and values owned.

The power follows from the auditor's power in the correction of returns, to compel attendance and to require answers to all questions under penalty of the contempt procedure of the probate court. A. G. R. 1912, p. 545.

The tax commission has authority to prescribe the form of blanks for making returns of incorporated companies, and in the exercise thereof may lawfully include in the blank forms questions the answers to which would be of assistance to the district assessor in making such revision and correction of corporate returns as he is authorized by statute to make, including questions contained in district assessors' form No. 10. However, the officers of corporations are not required to answer all such questions on the blank forms, though answers may be compelled in separate proceedings to inquire into the correctness of such returns under sections 5399 to 5403, inclusive, G. C. Such information may be used by the district assessor in verifying and checking up the return of the corporation, but not directly as the basis of an assessment of the corporate property. A. G. R. 1915, p. 1056.

A corporation manufacturing a product in Ohio and shipping quantities of the same to local agents to be sold by them upon commission must return for taxation each stock of goods so held by such agent, in the taxing district wherein the same is so held, on the average basis as manufacturer's stock of finished products. The return must be made by the president, secretary or principal accounting officer of the corporation, and not by the local agent. A. G. R. 1915, p. 708.

Building and loan associations are not required to return any personal property to the county auditor, under section 5404, G. C. A. G. R. 1913, p. 1375.

Valuation by county auditor; apportionment.

SEC. 5405. Return shall be made to the several auditors of the respective counties where such property is situated, together with a statement of the amount thereof which is situated in each township, village, city, or taxing district therein. Upon receiving such returns, the auditor shall ascertain and determine the value of the property of such companies, and deduct from the aggregate sum so found of each, the value as assessed for such companies, after so deducting the value of all the real estate included in the return, shall be apportioned by the auditor to such cities, villages, townships, or taxing districts, pro rata, in proportion to the value of the real estate and fixed property included in the return, in each of such cities, villages, townships, or taxing districts. The auditor shall place such apportioned valuation on the tax duplicate and taxes shall be levied and collected thereon at the same rate and in the same manner that taxes are levied and collected on other personal property in such township, village, city or taxing district. (R. S. Sec. 2744.)

The value of personal property for the purpose of taxation, whether belonging to an individual or a corporation, should be based on its true value as property and not on its value as a unit or going concern and with reference to the use made of it by the owner and profit derived therefrom. Cedar Point Resort Company v. Nuhn, treasurer, 12 O. L. R. 449. (On appeal to the court of appeals, this judgment was affirmed. The Supreme Court overruled an application to have the court of appeals certify its records, and on a rehearing again overruled such application.)

The property of a private corporation not having or exercising any public franchise is not assessable for taxation as a going concern under section 5405 G. C. Long v. Paper Co., 90 O. S. 468.

Duty of county auditor.

SEC. 5406. The auditor of each county, on or before the first Monday of May, annually, shall furnish the president, secretary, principal accounting officer, or agent as provided in the next two preceding sections, the necessary blanks for the purpose of making such returns, but neglect or failure on the part of the county auditor to furnish such blanks shall not excuse such president, secretary, accountant, or agent, from making the returns within the time specified herein. If the county auditor to whom returns are made is of the opinion that false or incorrect valuations have been made, that the property of the corporation or association has not been listed at its full value, or that it has not been listed in the location where it properly belongs, or if no return has been made to the county auditor he must have the property valued and assessed. This section and the next preceding section shall not tax any stock or interest held by the state in a joint stock company. (R. S. Sec. 2744.)

Returns are subject to the revision of the county auditor: State, ex rel., v. Halliday, 61 O. S. 352. This section confers on county auditors authority to revise and correct the tax returns of such corporations as must make their returns directly to him.

Insurance Company v. Hard, 59 Ohio State 248.

The authority thus conferred continues throughout the current year, or until_the_taxes on the property so returned have been paid, but does not extend to returns made for former

years.

Insurance Company v. Hard, 59 Ohio State 248.

Section 5398 G. C. confers on the several county auditors of the state the same jurisdiction over the tax returns made by corporations, that it confers on them in respect to the returns made by natural persons. Insurance Company v. Hard, 59 Ohio State 248.

Where and how property of an incorporated company, situated in more than one county, shall be listed.

SEC. 5406-1. If the property of an incorporated company is situated in more than one county, return shall be made to the county auditor of the county wherein the principal place of business of the company is located, or if the company has no principal place of business in this state, to the county auditor of any county wherein it transacts business or its property is situated. The county auditor to whom return is made shall certify the fact, together with the return and all information in his possession relating thereto, to the tax commission of Ohio, which shall ascertain and determine the aggregate value of the entire property of the company required to be listed in this state, and, from the aggregate sum so found, make the deductions provided in section fifty-four hundred and five of the General Code. The commission shall apportion the value of the property of such company, after making such deductions, among such counties in proportion to the value of the property