(b) Entrance fees

Such corporation shall pay into the office of the Secretary of State, upon filing its articles of association or incorporation, for certificate of authority and appointment of agent, a fee of $25.50, and $1 for every $1,000 of its capital stock exceeding $25,000, employed or to be employed in this state, as shown by its sworn statements.

(c) Annual license taxes

None.

(d) Taxes against owner of stock in foreign corporations Shares of stock in foreign corporations whose property is taxed in South Dakota are not taxed in hands of holders, but shares in other foreign corporations are taxable to holders.

TENNESSEE

(Revised to March 17, 1922)

1. General features of tax system

Tennessee draws its principal revenue from the general property tax and from business taxes, licenses, and fees. The distinguishing feature of the system is a carefully worked-out system of privilege taxes upon the exercise of various occupations, which supplements the general property tax. There are special corporation taxes, similar in nature to the privilege taxes on individuals, and state poll and inheritance taxes, as well as specific taxes on land transfers and on litigation.

2. Where pamphlet copies of tax laws, etc., may be secured

Pamphlet copies of the Collateral and Direct Inheritance Tax Laws may be obtained by addressing the State Comptroiler, Nashville, Tennessee.

3. State taxing officials

State Tax Commissioner, Nashville, Tennessee.

4. Income tax

There is no income tax in Tennessee.

5. General property tax

(a) Base

All property, real, personal, and mixed, is subject to taxation for state, county, and municipal purposes, except such as is declared exempt.

SEARS MIN.TAXES-36

"Real property" includes all minerals and timber interests, and all other interests of whatever kind, whether for life or a term of years, in real estate, including the interest which the lessee may have in the improvements erected upon lands where the fee is exempt to the owner. Such interests are assessed to the owner thereof separately from other interests in such real

estate.

"Personal property" is described as including: Household goods, implements and vehicles; live stock; water craft; income from United States bonds and from other stocks and bonds not taxed ad valorem; all bonds, except United States bonds; all shares of stock, except when the corporate property or capital stock is assessed in lieu thereof; notes, duebills, choses in action, accounts, mortgages, or other evidences of indebtedness; money on hand or on deposit; and all other personalty.

(b) Exemptions

(1) Public property; property for religious, charitable, scientific, educational, cemetery, etc., purposes.

(2) Personal property of the value of $1,000 in the hands of each resident taxpayer, and all property exempt by charter or by statute.

(3) Direct products of the soil in the hands of the producer and vendee; manufactured articles in hands of manufacturer.

(c) Assessment

The assessment for state, county, and municipal purposes is made by the county assessors. Personal property, privileges, and polls are to be assessed annually, real estate every two years, and both at their "actual cash value," which is defined to mean the price at which the property would sell at a fair voluntary sale. The assessment refers to January 10.

The assessor is required to visit all realty, see personally each taxpayer, and take his statement of all property, real and personal, without regard to any exemption. The taxpayer must make oath to the amount of his property, but not to the value, which is computed by the assessor. The penalty for refusal to make the schedule or list or to take the oath is a fine of $10 to $50, upon conviction of the misdemeanor. Suits for collection cannot be brought on notes and choses in action not listed.

Changes to the extent of $200 in the value of real estate are to be noted annually by the assessor, as well as any improvements thereon.

The amount of income of United States bonds and of all other stocks and bonds not taxed ad valorem is to be assessed as personalty. All bonds, except United States bonds, and all shares of stock, except when the corporate property or capital stock is assessed in lieu thereof are to be listed. All personal property, which is a part of the capital invested in the business of a merchant, factor, or manufacturer, is not to be assessed separately as personalty, but as part of the capital.

Manufacturers are assessed on the raw materials in their hands purchased on the open market from others than the producer. Raw materials in the hands of a manufacturer, if they represent produce of the soil in the hands of the producer or the immediate vendee of the producer are exempt. Articles in process of manufacture and finished articles in the hands of the manufacturer are to be deducted in assessing property or capital stock. The United States Supreme Court in Darnell v. Memphis, 208 U. S. 113, 28 Sup. Ct. 247, 52 L. Ed. 413, held that the benefit of the exemption of manufactured articles cannot be confined to articles manufactured from the produce of the soil of Tennessee, but must likewise be extended to articles manufactured from the produce of other states, thus ren

dering nugatory provision in the state Constitution limiting the benefit of the exemption to articles manufactured from produce of the soil of Tennessee.

Merchants are assessed on the average capital invested in the business during the year, which is found by dividing the sum of the highest and the lowest amounts of stock by two.

Of stocks of merchandise sold at auction or on commission, one-third of the aggregate amount of the annual sales is to be returned for taxation.

Property held by executors and administrators shall be assessed in the county, district, or ward in which the decedent resided at time of death until such shall have been distributed; but, if deceased lived in another state, then the property shall be assessed where the personal representative resides.

Personal property held by trustees and guardians of minors, married women, and lunatics shall be assessed to each such. trustee or guardian in the county, ward, or district where such 'dependent resides, if a resident of the state; if a nonresident, then in the county, ward, or civil district in which the guardian or trustee resides. Guardian having control thereof must render an annual statement.

Corporations are assessed on their real estate and tangible personalty as individuals.

Foreign corporations are assessed only on the actual cash value of real estate and tangible personalty owned in Tennessee. The Supreme Court of Tennessee held in Southern Exp. Co. v. Patterson, 122 Tenn. 279, 123 S. W. 353, that a defect in the General Assessment Act renders impossible the assessment of intangible property of foreign corporations doing business in Tennessee.

Bank stock is assessed in the name of the shareholders at its cash value, less a proportionate share of the realty and tan