Commonwealth v. Lehigh & New England Railroad

Citations

• 268 Pa. 271
• 110 A. 725
• 1920 Pa. LEXIS 674

Syllabus

<p>Taxation — State—Corporate loans — Act of June 17,1913, section 17, P. L. 507, 516 — Railroad equipment trust certificates — Promissory notes — Duty to collect tax — Neglect—Liability.</p> <p>1. A corporation is not taxable for state purposes on equipment trust certificates, issued in connection with, a lease and agreement for the purchase of certain railroad equipment and rolling stock, under section 17 of the Act of Juno 17,1913, P. L. 507, 516, imposing a tax for state purposes upon corporate “scrip, bonds or certificates of indebtedness” inasmuch as such obligations are taxable under section 1 of the same act, which imposes a tax for county purposes on “car trust securities.” As they are specifically mentioned among the taxable subjects i f section 1 and made thereby taxable for county purposes, they cannot be construed to fall within the provision of section 17, which imposes a tax for state purposes.</p> <p>2. A corporation is not taxable Cor state purposes on indebtedness represented by promissory notes negotiated and discounted by private bankers under section 17 of Act of 1913, as such obligations are taxable under section 1 of the same act for county purposes.</p> <p>. 3. Section 17 of the Act of 1913 imposes no duty on a corporation to collect a tax on an indebtedness represented by equipment trust certificates or promissory notes negotiated by a bank, inasmuch as such obligations are taxable under section 1 of the same act for county purposes and the tax thereon is collectible by the local taxing authorities and not by the corporation.</p>