Home Savings Bank v. City of Des Moines

Citations

• 205 U.S. 503
• 27 S. Ct. 571
• 51 L. Ed. 901
• 1907 U.S. LEXIS 1374

Syllabus

<p>The Constitution has conferred upon the Government power to borrow ' money on the credit of the United States and that power cannot be burdened, impeded, or in any way affected, by the action of any State. Weston v. Charleston, 2 Pet. 449.</p> <p>The tax upon the property of a bank iii which United States securities are included is beyond the power of the State, and is also within the prohibition of § 3701, Rev. Stat., and other acts of Congress.</p> <p>While the, tax on an individual in respect to his shares in a corporation is not a tax on the corporation, and the yjdue of the shares may be assessed without regard to the fact that the assets of the corporation include government securities, if the tax is actually on the corporation although nominally on the shares such securities may not be included in assessing the value of the shares for taxation.</p> <p>If a State has not,the power to levy a tax it will not be sustained merely because another tax which it might lawfully impose would have the same ultimate incidence.</p> <p>The substantial effect of section 1332 of the Code of Iowa providing that shares of stock of state and savings banks and loan and trust companies shall be assessed to such banks and companies and not to the individual stockholders, and that in fixing the value of the shares capital, surplus and undivided earnings shall be taken into account, as the law has been construed,by the highest court of the State, is to tax the property of the bank and not the shares of stock, and an assessment which includes government bonds owned by the bank in fixing the valuation of its shares is illegal and beyond the power of the State. '</p>