Commonwealth v. Fall Brook Coal Co.

Citations

• 156 Pa. 488
• 26 A. 1071
• 1893 Pa. LEXIS 1374

Syllabus

<p>[Marked to be reported.]</p> <p>Taxation — Corporations—Capital stock — Shares—Double taxation.</p> <p>The legislature has the power to impose double taxation, provided it is done in such manner as to secure the uniformity which the constitution requires ; but an attempt to impose double taxation will not be presumed.</p> <p>A tax upon the capital stock in the hands of a corporation, and a tax upon the owners of the parts or shares into which the capital stock is divided, upon their respective holdings, is double taxation, and will not be supported except by express enactment.</p> <p>Taxation of stocks — Classification—-Acts o/1889 and 1891.</p> <p>The acts of 1889 and 1891 furnish the following scheme for the taxation of stocks: (1) The capital stocks of all manufacturing companies and corporations is exempt from taxation whether in the hands of the corporation or the shareholder. (2) All corporations that can be reached directly by the state are taxed upon their capital stock upon a valuation graded according to the dividends made, or an appraisement of the value of the shares. The tax is adjusted by the auditor general and is payable to the state treasurer by the officers of the corporation. (8) Other stocks not falling under either of the above classes are reached in the only way that is possible, viz.: by requiring the holder to disclose the fact of his holding them and assessing him with the value of the shares he holds.</p> <p>Tax on capital stock — Tax on shares in the hands of owners — Railroads.</p> <p>Where a railroad company has paid a tax upon its capital stock under the acts of 1889 and 1891, its shares are not taxable in the hands of their holders, whether they are individuals or corporations.</p> <p>Com. v. Westing-house Mfg. Co., 151 Pa. 265, and Com. v. Westinghouse Air Brake Co., 151 Pa. 276, distinguished.</p>