SEC. 32. And whereas, it is necessary that provision be made for the payment of the interest upon the State debt; therefore, be it further enacted, that from and after the passage of this act, all real estate, to wit: houses, lands, lots of ground and ground rents, mills, and manufactories of all kinds, furnaces, forges, bloomeries, distilleries, sugar houses, malt houses, breweries, tanyards, fisheries and ferries, wharves, and all other real estate not exempt by law from taxation; also all personal estate, to wit: horses, mares, geldings, mules, and neat cattle over the age of four years; also all mortgages, money owing by solvent debtors, whether by promissory note, penal or single bill, bond or judgment; also all articles of agreement and accounts bearing interest, owned or possessed by any person or persons whatsoever, except notes or bills for work and labor done, and bank notes; also all shares of stock in any bank, institution, or company, now or hereafter incorporated by or in pursuance of any law of this Commonwealth, or of any other State or government; and on all shares of stock or weekly deposits in any unincorporated saving-fund institution, and all public loans or stocks whatsoever, except those issued by this Commowealth, and all money loaned or invested on interest in any other State; also all household furniture, including gold and silver plate, owned by any person or persons, corporation or corporations, when the value thereof shall exceed the sum of three hundred dollars; also all pleasure carriages both of two and four wheels; salaries and emoluments of office, all offices, and posts of profit, professions, trades and occupations, except the occupation of farmers, together with all other things now taxable by the laws of this Commonwealth, shall be valued and assessed and subject to taxation for the purposes in this act mentioned, and for all State and county purposes whatsoever.

SEC. 33. That the amount of the tax chargeable on the capital stock of all banks, institutions and companies incorporated by or under any law of this Commonwealth, on which a dividend or profit of six per cent per annum or more shall be made and declared, shall be at the rate of one-half mill on each one per cent of such dividend or profit, and the same shall be assessed and paid as provided in the act of June 11, 1840; and in all cases where any such bank, institution, or company shall fail to make and declare any dividend or profit, or shall make or declare a dividend or profit of less than six per cent per annum, the cashier or treasurer, and a majority of the directors or managers thereof, after being duly sworn or affirmed, to do and perform the same with fidelity, according to the best of their knowledge or belief, shall, between the first and fifteenth day of November of the present year, and annually there after, estimate and appraise the capital stock of such bank, institution, or company, at its actual value, in cash, and when the same shall have been so estimated and appraised, they shall, forthwith, forward a certificate thereof

to the auditor general, accompanied by a copy of their said oath or affirmation, to be by them signed, and attested by the magistrate or other person qualified to adminster the same; and the said cashier or treasurer is hereby authorized and required, on or before the fifteenth day of January then next, to transmit to the treasury of the Commonwealth, out of the funds of said bank, institution, or company, a sum equal to three mills on every dollar of the value of the capital stock thereof so estimated and appraised. And if, in any case, the funds of such bank, institution, or company, in the possession or subject to the control of the cashier or treasurer at the period when the value of said capital stock shall be so estimated and appraised, shall be insufficient to satisfy and pay the tax aforesaid, it shall be the duty of said cashier or treasurer, forthwith to give notice to the stockholders of such bank, institution or company, of the amount required on each share of stock by them respectively held to enable the said cashier or treasurer, to pay the tax aforesaid; and if any such stockholders shall neglect or refuse to pay the amount so required, for the period of thirty days from the time of such notice, the said cashier or treasurer shall, after giving two weeks' public notice thereof in one or more newspapers published in or nearest to the county in which such bank, institution or company, or its principal place of business, is located proceed to sell, at public sale, and transfer to the purchaser, so many shares of the stock of such delinquent stockholder as may be necessary to pay his portion of the tax required to be paid as aforesaid. * (Repealed. See p. 889.)

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SEC. 42. That if any county shall pay into the State treasury its quota of tax levied on its said adjusted valuation, fifteen days prior to the first day of August, in any year, such county shall be entitled to an abatement of five per cent on the amount so paid; and any State tax remaining unpaid by any individual or corporation, after said tax is due and payable by said county to the Commonwealth, shall bear an interest of six per cent, and be a lien on the estate on which it is charged, till fully paid and satisfied. And that it shall be the duty of the treasurer of each county, incorporated city, district and borough of this Commonwealth, on the payment of any dividend or interest, to any holder or agent claiming the same, on any scrip, bond, or certificate of indebtedness issued by said incorporated city, district and borough aforesaid, to assess the tax herein made and provided for State purposes, upon the nominal value of each and every said evidence of debt; said tax to be deducted by the said treasurer, on the pay of any interest or dividend aforesaid, and the same shall be held by him, until paid over to the State treasurer; and the said treasurers shall be subject to the same penalties and liabilities now prescribed by existing laws in relation to taxes on bank dividends. (Repealed. See p. 891.)

ANNOTATIONS.

TAX ON DIVIDENDS.

1. FISCAL YEAR-COMPUTATION OF PROFITS.

2. TAX ON DIVIDENDS AND CAPITAL STOCK DISTINCT.

3. DIVIDENDS-COMPUTATION FOR TAXATION.

1. FISCAL YEAR-COMPUTATION OF PROFITS.

Under this act the first day of November is the commencement and conclusion of the fiscal year for corporations and is the date to and from which the profits are to be computed for the purpose of taxation under the act. Commonwealth v. Diamond Coal Co., 1 Pearson 320.

2. TAX ON DIVIDENDS AND CAPITAL STOCK DISTINCT.

Under this act as well as under the act of April 12, 1859, and of the act of April 30, 1864, the legislature has always treated a tax on the dividends of corporations and a tax on capital stock of corporations as distinct taxes. From time to time the legislature has imposed both taxes on some corporations and one only on others.

Commonwealth v. Columbia Oil Co., 1 Pearson 377, p. 378.

See Commonwealth v. Pittsburg Forge & Iron Co., 2 Pearson 374.

3. DIVIDENDS-COMPUTATION FOR TAXATION.

When no time is fixed as to what part of a dividend of a year was made by a corporation before November 1, and what part after that date; or where the corporate statement showed the earnings and dividend for a year, the taxing officers may compute the tax upon the entire amount as if it was all made after November 1.

Commonwealth v. Diamond Coal Co., 1 Pearson 320, p. 321.

A dividend made out of the profits of the year 1853 could not be taxed for the year 1854 if the corporation in its report had shown that it was made prior to November 1, 1853. But when the corporation made a report showing its earnings and the dividend declared for the year 1853, a court will presume that it was made after as well as before November 1. In the absence of a showing when the profits were made the State may properly look to the time when the dividend was declared as the basis for the taxation.

Commonwealth v. Diamond Coal Co., 1 Pearson 320.

SEC. 2. That all dividends of the profits of the Chartiers Coal Company exceeding ten per cent per annum, shall be subject to a tax for the use of the Commonwealth, at the rate of twenty-five per cent upon all such excess; and the proviso to the ninth section of the act incorporating said company be and the same is hereby repealed.

TAX FOR SCHOOL PURPOSES.

LAWS 1854, 617, P. 624.

MAY 8, 1854. AN ACT for the regulation and continuance of a system of education by common schools. SEC. 1. Be it enacted, etc.:

SEC. 30. That the board of directors or controllers shall, on or before the first Monday in June, annually, proceed to levy and apportion the said school tax, pursuant to this act, not exceeding the amount of State and county taxes authorized by law to be assessed on all objects, persons and property, made or to be made taxable for State or county purposes, and that all the taxes levied and assessed by the directors or controllers within each school year, shall be contained in the same duplicate: Provided, That any tax on trades, professions and occupations, or on single freemen, shall in no case be less than fifty cents.

ANNOTATIONS.

TAX FOR SCHOOL PURPOSES.

REDUCTION OF TAXES.

This act did not establish a fixed rate of taxation for school purposes; but the manifest intent of the act was to allow to be imposed each year for school purposes as much as the law allowed for both State and county purposes; and when subjects of taxation are reduced in number, or the tax may be less for State or county purposes, the amount of school tax undergoes a like reduction. Locust Mt. Coal & Iron Co. v. Currah, 2 Leg. Chron. 231, p. 233. See Northern Coal & Iron Co. v. Dumphey, 10 Luzerne Leg. Reg. 491.

TAXATION OF CORPORATIONS EQUALIZED.

LAWS 1859, P. 529.

APRIL 12, 1859.

AN ACT to equalize taxation upon corporations. (Repealed. See p. 898.)

SEC. 1. Be it enacted, etc.:

That from and after the passage of this act, the capital stock of all banks, savings institutions, and companies whatever, incorporated by or under any law of this commonwealth, or that may be hereafter incorporated, shall be subject to and pay a tax into the treasury of the Commonwealth annually, at the rate of one-half mill for each one per cent of dividend made or declared by such bank, savings institution or company; and in case of no dividend being made or declared by such bank, savings institution or company, then three mills upon a valuation of the capital stock of the same, agreeably to the thirty-third section of the act of April 29, 1844, entitled "An act to reduce the State debt and incorporate the Pennsylvania railroad company;" and so much of any existing law as is inconsistent with the foregoing provisions is hereby repealed: Provided, That any institution or company (except banks of issue), now liable for tax on capital stock, as also upon dividends, shall from henceforth be exempt from any tax upon dividends: And provided further, That hereafter all banks of deposit and discount, or savings banks, shall be subject to the same tax as banks of issue; nothing, however, herein contained shall be construed to make building associations, plank road or turnpike companies liable for any tax to the Commonwealth, when such companies make or declare no dividends: And provided further, That nothing contained herein shall be taken or construed to apply to, or in any manner affect the existing law relative to tonnage tax on the Pennsylvania railroad: Provided, also, That all unsettled accounts shall be adjusted in accordance with the provisions of this act.

ANNOTATIONS.

DIVIDENDS.

1. TAX ON DIVIDENDS ABOLISHED.

2. FOREIGN CORPORATIONS SUBJECT TO TAX.

1. TAX ON DIVIDENDS ABOLISHED.

This act abolished the tax on dividends of certain corporations but in lieu thereof imposed a tax on the capital stock alone to be measured by the amount of dividends when dividends were actually declared.

Commonwealth v. Columbia Oil Co., 1 Pearson 377, p. 378.

See Commonwealth v. Pittsburgh Forge & Iron Co., 2 Pearson 374, p. 375.

This act took the tax on dividends off of all corporations except banks, and a tax on the capital stock of such corporations, regulated in part by the amount of dividends, was alone imposed.

Commonwealth v. Baltimore Coal Co., 1 Pearson 375.

2. FOREIGN CORPORATIONS SUBJECT TO TAX.

A mining company incorporated under the laws of another State but doing business in this State by virtue of the act of April 23, 1841, was by this act absolved from a tax on dividends declared by it, but it nevertheless was subject to the act of April 30, 1864, imposing a tax upon the net profits of the company. Commonwealth v. Baltimore Coal Co., 1 Pearson 375, p. 376.

A mining company incorporated under the laws of another State by accepting the provisions of the act of April 23, 1841, for carrying on business and holding real estate within the State of Pennsylvania thereby agreed to pay a tax of eight per cent on all dividends made of six per cent per annum or upward, and the power was reserved by the legislature to alter and annul the privileges granted by the act. There is no intimation given that the franchise of a particular coal company shall not be subject to future taxation should any tax be imposed by law.

Commonwealth v. Baltimore Coal Co., 1 Pearson 375.

TAX ON PRODUCTS OF MINES AND INCOME. LAWS 1864, P. 218.

APRIL 30, 1864.

AN ACT imposing additional taxes for State purposes, and to abolish the revenue board. SEC. 1. Be it enacted, etc.:

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That in addition to the taxes now imposed by law, hereafter, every railroad, steamboat, canal, slack-water navigation, or other transportation company, doing business within this Commonwealth shall pay to the State treasurer, for the use of the Commonwealth, the following taxes, to wit: first, upon the products of mines, for each ton of two thousand (Repealed. See p. 898.)

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pounds, two cents. SEC. 2. That every mining and quarrying company, and all other companies and corporations doing business in this Commonwealth, except those specified in the first section of this act, not paying a tax to the State, upon dividends, under existing laws, shall annually, upon the first day of November, of each year, make report, to the auditor general, under oath or affirmation, setting forth the amount of net earnings, or income, received by said individuals, or corporation, from all sources, during the preceding year; and upon such net earnings, or income, the said individuals, or corporation, as the case may be, shall pay to the treasurer, for the use of the State, within sixty days thereafter, three per centum upon such annual net earnings, or income, in addition to the taxes now imposed by existing laws. * * (Repealed. See p. 898.)

SEC. 3. That every president, treasurer, cashier, or other officer of any company incorporated, or that may hereafter be incorporated, which pays interest to its depositors, bondholders, or other creditors, upon which, by the laws of the Commonwealth, a State tax is imposed, shall, before payment of the same, retain from said depositors, bondholders, or creditors, the amount of State tax, imposed by existing laws, and shall pay over the same to the State treasurer; and that all the laws regulating the mode of such payment, in regard to treasurers of counties, cities, and boroughs, be and the same are