McMullin's Estate

Citations

• 272 Pa. 284
• 116 A. 232
• 1922 Pa. LEXIS 816

Syllabus

<p>Taxation — Personal property tax — Corporations — Foreign corporation — Tangible property — Registration—Doing business — Acts of June 17,1918, P. L. 507, and July 15,1919, P. L. 9Jf8 — Failure to make return.</p> <p>1. Shares of stock of a foreign corporation owned by a resident of Pennsylvania are subject to the personal property tax for county purposes under the Act of June 17, 1913, P. L. 507, where it appears that, although the corporation is registered to do business in the State, it has no tangible property in the State subject to the capital stock tax under the Act of July 15, 1919, P. L. 948.</p> <p>2. The auditor general’s assessment of a tax on the capital stock of such corporation is not conclusive upon the county authorities.</p> <p>3. Registration and authorization to do business are not sufficient to make a corporation liable to taxation on its capital stock.</p> <p>4. In determining whether a corporation is liable to a capital stock tax, patent rights or assignments thereof, cannot be considered. They are an intangible asset created through federal laws.</p> <p>5. Nor can the taxing authorities consider United States bonds, stock of domestic or foreign corporations, cash in bank, mortgages and other intangible assets that are referable to the domicile of the corporation where such assets have their situs or ownership.</p> <p>6. Where, on an appeal from a personal tax settlement, there is nothing on the record to show that a foreign railroad corporation has tangible property in this State, so as to render it liable to tax on its capital stock, the county authorities may levy the personal property tax on its stock in the hands of a resident taxpayer.</p> <p>1. If such company is doing business in Pennsylvania, it is liable to the State for a tax on its bonds, but if it is not doing business, the county is the proper body to receive the tax.</p> <p>8. Where a citizen acting in good faith fails to make a tax return, and takes an appeal from a personal