People v. Bradley

Citations

• 39 Ill. 130

Syllabus

<p>1. Taxation by the State—origin of the power. The power of taxation by the States was not derived from, nor does it depend upon the federal government, and may be exercised without limit upon all persons and property within the State, except so far as it is restricted by the federal Constitution.</p> <p>2. Same—how far restricted by the federal Constitution. The federal Constitution limits the power of taxation by a State in express terms as to imports and exports, and by implication, as to those instruments employed by the general government to carry out its authority, and the operation of such instruments ; but it in no wise prohibits the taxation of the property of those instruments.-</p> <p>3. Taxation of National bank stock by the State. The bonds of the federal government are instruments used in aid of its authority, and cannot be taxed; but when converted into bank stock, such stock becomes the property of those instruments, and represents the interest of the particular shareholder owning such stock, and is subject to taxation by the State.</p> <p>4. The shares of stock held by a person in the capital stock of a national bank, constitute his interest in the bank, and such interest is liable to assessment and taxation under the laws of the State. It is a subject over which the sovereign power of the State extends, and this power exists by virtue of authority inherent in the State itself, and cannot be directed or controlled in its exercise by the general government.</p> <p>* 6. Taxation—must be equal and imposed according to value. Under the Constitution and laws of this State, the rate of taxation as to every species of taxable property must be equal, and must be imposed according to value.</p> <p>6. Same—as between State and national banks. The shares of stock in our State banks are liable to taxation, without regard to the character of the bonds deposited with the auditor; and, as between these banks and national banks, the rate of taxation is the same,