States, or of the United States, or of any foreign government, and doing business in this Commonwealth, or having capital or property employed or used in this Commonwealth by or in the name of any corporation, company, joint-stock association, limited partnership, co-partnership, association or associations, person or persons, or in any other manner, except banks, savings institutions and foreign insurance companies, shall be subject to and pay into the treasury of the Commonwealth annually a tax to be computed as follows, namely: If the dividend or dividends made or declared by such corporation, joint-stock association, or limited partnership, as aforesaid, during any year ended with the first Monday of November, amount to six or more than six per centum upon the par value of its capital stock, then the tax to be at the rate of one-half mill upon the capital stock for each one per centum of dividend so made or declared; if no dividend be made or declared, or if the dividend or dividends made or declared do not amount to six per centum upon the par value of said capital stock, then the tax to be at the rate of three mills upon each dollar of a valuation of the said capital stock made in accordance with the provisions of the twentieth section of this act; and in case any such corporation, joint-stock association and limited partnership shall have more than one kind of capital stock, as for instance common and preferred stock, and upon one of said stocks a dividend or dividends amounting to six or more than six per centum upon the par value thereof has been made or declared, and upon the other no dividend has been made or declared, or the dividend or dividends made or declared thereon amount to less than six per centum upon the par value thereof, then the tax shall be at the rate of one-half mill for each one per centum of dividend made or declared upon the capital stock upon the par value of which the dividend or dividends made or declared amount to six or more than six per centum, and in addition thereto tax shall be charged at the rate of three mills upon each dollar of a valuation, made in accordance with the provisions of the twentieth section of this act, of the capital stock upon which no dividend was made or declared or upon the par value of which the dividend or dividends made or declared did not amount to six per centum; and it shall be the duty of the treasurer or other officers having charge of any such corporation, joint-stock association or limited partnership, upon which a tax is imposed by this section of this act, to transmit the amount of said tax to the treasury of the Commonwealth, within sixty days from the date of the settlement of the account by the auditor general and State treasurer. * (Amended. See p. 929.) * SEC. 23. That every pipe line company now or hereafter incorporated or organized by or under any law of this Commonwealth, or now or hereafter organized or incorporated by any other State or by the United States or any foreign government, and doing business in this Commonwealth, and owning, operating or leasing to or from another corporation, company, association joint-stock association or limited partnership, any * pipe line oil, * * * * * * * or other device for the transportation of shall pay to the State treasurer a tax of eight mills upon the dollar upon the gross receipts of said corporation, company or association, limited partnership, firm or copartnership, received from the transportation of oil done wholly within the State; the said tax shall be paid semi-annually upon the last days of January and July in each year; and for the purpose of ascertaining the amount of the same, it shall be the duty of the treasurer or other proper officer of the said company, firm, copartnership, limited partnership, joint-stock association or corporation, to transmit to the auditor general a statement, under oath or affirmation, of the amount of gross receipts of the said companies, copartnerships, corporations, joint-stock associations or limited partnerships derived from all sources, and of gross receipts from business done wholly within the State, during the preceding six months ending on the first days of January and July in each year; and if any such company, firm, copartnership, joint-stock association, association or limited partnership, or corporation, shall neglect or refuse for a period of thirty days after such tax becomes due, to make said returns or to pay the same, the amount thereof with an addition of ten per centum thereto, shall be collected for the use of the Commonwealth as other taxes are recoverable by law: Provided, That in any case where the works of one corporation, company, joint-stock association or limited partnership are leased to and operated by another corporation, company, association, or limited partnership, the taxes imposed by this section shall be apportioned between the said corporations, companies, associations or limited partnerships in accordance with the terms of their respective leases or agreements, but for the payment of the said taxes the Commonwealth shall first look to the corporation, company, association or limited partnership oper ating the works, and upon payment by the said company, corporation, associa tion, or limited partnership of a tax upon the receipts as herein provided derived from the operation thereof, the corporation, company, joint-stock associa tion, or limited partnership from which the said works are leased, shall not be held liable under this section for any tax upon the proportion of said receipts received by it as rental for the use of said works. * * ANNOTATIONS. TAXATION OF CAPITAL STOCK AND PIPE LINES. 1. CLASSIFICATION OF CAPITAL STOCK OF MINING COMPANIES. 2. CAPITAL STOCK-VALUATION. 3. CAPITAL STOCK-MANUFACTURING COMPANIES-EXEMPTION FROM TAX ATION. 4. TAX ON CAPITAL STOCK-EFFECT. 5. FOREIGN MINING CORPORATIONS-TAXATION. 1. CLASSIFICATION OF CAPITAL STOCK OF MINING COMPANIES. The capital stock of corporations may be classified for the purpose of taxation under the general revenue act of June 1, 1889 (P. L. 431), and that act is not unconstitutional on the ground that it permits the exemption of such part of the capital stock of a corporation as is used in manufacturing and imposes a tax on that part of the capital used in mining. Commonwealth v. Juaniata Coal Co., 157 Pa. St. 507, p. 512. 2. CAPITAL STOCK-VALUATION. The question of the actual cash value of the capital stock of a mining corpora tion must be determined by considering the value of its tangible property and assets, including its bonds, mortgages, and money, and its franchises and privileges; and the amount of the encumbrance on its property is also relevant, but this is not to be specifically deducted from the value so ascertained and determined. Commonwealth v. Manor Gas Coal Co., 8 Pa. Dist. Rep. 258, p. 259. 8. CAPITAL STOCK—MANUFACTURING COMPANIES-EXEMPTION FROM TAXATION. The shares of the capital stock of a coal mining company organized in this Commonwealth are not taxable in the hands of their holders where the State tax and the capital stock has been paid by the corporation. This act expressly exempts such stock from the liability to taxation in the hands of the holders. Commonwealth v. Fall Brook Coal Co., 156 Pa. St. 488, p. 499. Commonwealth v. Lehigh Coal & Navigation Co., 162 Pa. St. 603, p. 608. This act makes express exceptions in favor of two classes of corporations. One of these is manufacturing companies and the other is made up of corporations that are assessed with the capital stock tax by the auditor general and which is paid to the State treasurer by the corporation. Shares of stock in any corporation belonging to either of these classes are not subject to taxation in he hands of the holders. Commonwealth v. Lehigh Coal & Navigation Co., 162 Pa. St. 603, p. 609. A corporation organized for the manufacture of iron, steel and other metals and which with a part of its capital stock leased and operated an iron mine in New Jersey is not organized exclusively for manufacturing purposes and is not entitled to the benefit of the exemption from taxation contained in section 21 of this act. Commonwealth v. Coplay Iron Co., 11 Pa. County Ct. 295, p. 296; 1 Pa. Dist. Rep. 353. Under this act and the amendatory act of June 8, 1891, the capital stock of all manufacturing companies and corporations is exempt from taxation whether in the hands of the corporation or share holders. The scheme includes every share of stock in corporations which the State can not reach that may be held by any tax payer by requiring him to disclose his ownership and then assessing the shares held by him. Commonwealth v. Fall Brook Coal Co., 156 Pa. St. 488, p. 497. A quarrying company that takes rock and stone from its quarries, transports them to large crushers that crush the stones into smaller sizes, and this small stone is carried by a conductor to a large screen where it is assorted, the different sizes going into different bins, and part of it being returned to be recrushed, is not a manufacturing company within the meaning of the general revenue statute of June 1, 1889, and the amendatory acts of June 8, 1893 (P. L. 358), and June 7, 1911 (P. L. 678), and is not entitled to the exemption from taxation allowed by this statute. Commonwealth v. John T. Dyer Quarry Co., 250 Pa. St. 589, p. 591. 4. TAX ON CAPITAL STOCK-EFFECT. A tax on the capital stock of a corporation is a tax on its property and assets including its franchises. Commonwealth v. Manor Gas Coal Co., 8 Pa. Dist. Rep. 258, p. 259. 5. FOREIGN MINING CORPORATIONS-TAXATION, A foreign mining corporation with an office in this State for the convenience of stock transfers, employed two clerks only, and the accounts of the company were kept in another State, where all its supplies were ordered, all products sold, all bills paid and where the clerical force was kept and employed, was not doing business in this commonwealth within the meaning of this act or of the supplemental acts of June 8, 1891 (P. L. 229), and June 8, 1893 (P. L. 353). Commonwealth v. Tonopah Min. Co., 19 Pa. Dist. Rep. 260, p. 263. Neither the capital stock of a mining company nor a deposit balance in bank of a foreign mining corporation is taxable in this commonwealth where the corporation kept an office only with two clerks for the purpose of making transfers of sales of its capital stock, but where none of the mining property was kept in the State and where all the purchases were made and accounts kept and bills paid in a different State. Commonwealth v. Tonopah Min. Co., 19 Pa. Dist. Rep. 260, p. 263. PROPERTY OF CORPORATIONS-TAXATION-THIRD SUPPLE LAWS 1891, P. 229. MENT. JUNE 8, 1891. AN ACT to provide increased revenues for the purpose of relieving the burdens of local taxation, being supplementary to an act, entitled "An act to provide revenue by taxation," approved June 7, 1879, amending the first, fourteenth, sixteenth, twentieth, twenty-first, twenty-fifth and twenty-sixth sections of an act supplementary thereto, which became a law on the first day of June, A. D. 1889, entitled "A further supplement to an act, entitled 'An act to provide revenue by taxation,' approved June 7, A. D. 1879," and providing for greater uniformity of taxation by taxing all of the property of corporations, limited partnerships and joint-stock associations having capital stock at the rate of five mills on each dollar of its actual value. WHEREAS, There is a widespread demand for the enactment of such measures as will bring about the equalization of taxation and the relief of local taxation upon real estate: SEC. 1. Be it enacted, etc.: 66 That the first section of the said act which became a law on the first day of June, A. D. 1889, entitled A further supplement to an act entitled 'An act to provide revenue by taxation,' approved June 7, A. D. 1879," which reads as follows, to wit: (here follows sec. 1 of the act of June 1, 1889. see page 921, be and the same is hereby amended so as to read as follows: SEC. 1. Be it enacted, etc. : That from and after the passage of this act all personal property of the classes hereinafter enumerated, owned, held, or possessed by any person, persons, copartnership, or unincorporated association or company, resident, located or liable to taxation within this Commonwealth, or by any joint-stock company or association, limited partnership, bank or corporation whatsoever, formed, erected, or incorporated by, under or in pursuance of any law of this Commonwealth or of the United States, or of any other State or Government, and liable to taxation within this Commonwealth, whether such personal property be owned, held or possessed by such person or persons, copartnership, unitcorporated association, company, joint-stock company or association, limited partnership, bank or corporation, in his, her, their, or its own right, or as active trustee, agent, attorney-in-fact or in any other capacity, for the use, benefit. or advantage of any other person, persons, copartnership, unincorporated association, company, joint-stock company, or association, limited partnership, bank, or corporation, is hereby made taxable annually for State purposes it the rate of four mills on each dollar of the value thereof, and no failure to assess or return the same shall discharge such owner or holder thereof from liability therefor to the Commonwealth, that is to say: All mortgages, all moneys owing by solvent debtors, whether by promissory note, or penal or single bill, bond, or judgment; all articles of agreement and accounts bearing interest; all public loans whatsoever, except those issued by this Commonwealth or the United States; all loans issued by or shares of stock in any bank, corporation, association, company, or limited partnership, created or formed under the laws of this Commonwealth or of the United States, or of any other State or Government, including car-trust securities and loans secured by bonds or any other form of certificate or evidence or indebtedness, whether the interest be included in the principal of the obligation or payable by the terms thereof, except shares of stock in any corporation or limited partnership liable to the capital stock tax imposed by the twenty-first section of this act, or relieved from the payment of tax on capital stock by said section; all moneys loaned or invested in other States, Territories, the District of Columbia or foreign countries; all other moneyed capital in the hands of individual citizens of the State: Provided, That this section shall not apply to bank notes, or notes discounted or nego-* tiated by any bank or banking institution, savings institution, or trust company: And provided, That the provisions of this act shall not apply to building and loan associations: Provided also, That this section shall take effect on the first day of January, A. D. 1892. SEC. 2. That section 14 of said act which reads as follows, to wit: (here follows sec. 14, of the act of June 1, 1889), be and the same is hereby amended so as to read as follows: SEC. 14. That the county commissioners or board of revision of taxes of each and every county in this Commonwealth, are hereby authorized and required, annually hereafter, at the usual period of making county rates and levies, to assess.or cause to be assessed, for the use of the Commonwealth, upon all stages, omnibuses, hacks, cabs and other vehicles used for transporting passengers for hire, except steam and street passengers railway cars, owned, used or possessed within this Commonwealth, by any person or persons, or by any corporate body or bodies, and upon all annuities yielding annually over two hundred dollars, a tax of 4 mills upon each and every dollar of the value thereof; Provided also, That this section shall take effect on the first day of January, A. D. 1892. (Original section not taken.) SEC. 3. That section 16 of said act which reads as follows, to wit (here follows sec. 16 of the act of June 1, 1889), be and the same is hereby amended so as to read as follows: SEC. 16. That for the year 1892, and annually thereafter, three-fourths of the net amount of tax based on the return of property subject to taxation for State purposes required to be made to and accepted by the State board of revenue commissioners annually, by county commissioners and the board of revision of taxes in cities coextensive with counties, that is collected and paid into the State treasury by a county or city coextensive with a county, shall be returned by the State treasurer to such county or city coextensive with a county, for its own use in payment of the expenses incurred by it in the assessment and collection of said tax: Provided, That in consideration of the return to counties and cities coextensive with counties of the tax as aforesaid, no claim shall be made upon or allowed by the Commonwealth for abatements, tax collectors' commissions, extraordinary expenses, uncollectible taxes or for keeping a record of judgments and mortgages. (Original section not taken). |