Fidelity Etc. Co. v. Loughlin

Citations

• 139 Pa. 612
• 21 A. 163
• 1891 Pa. LEXIS 1029

Syllabus

<p>1. Section 21, act of June 1, 1889, P. L. 420, provides for a state tax of . one half mill upon the capital stock of “ every corporation.whatsoever,” for each one per cent of dividend declared, if such dividend amount to six per cent or more; if no dividend, or less than six per cent, be declared, the tax is then to be three mills upon each dollar of the value of the stock, as ascertained by the method directed in § 20.</p> <p>2. The object aimed at is a uniform tax on the actual value. The different methods of estimating such value, in regard to property which though of the same kind is thus differently situated, are within the province of the legislature to determine; and the uniformity of the tax, as laid by §§ 1 and 21, of the act, and its consequent validity, are settled by Fox’s App., 112 Pa. 337.</p> <p>3. But, clearly to prevent double taxation on mortgages, etc., which are taxed eo nomine in § 1 of said act and as part of the capital stock in § 21, the proviso to the latter section is added, that corporations, etc., “liable to tax on capital stock under this section,” shall not be taxable on mortgages, etc., constituting assets “ included within the appraised value of their capital stock.”</p> <p>4. Wherefore, the intent of the act was to tax all mortgages three mills on the dollar, but not to tax any of them twice. Upon mortgages included in the capital stock of corporations, three mills are levied, indirectly under §21, on their value as part of the stock as estimated by the profits earned; but upon mortgages not so included, directly under § 1, as upon mortgages in the hands of individuals.</p>