Chapter 267. To amend section 5219 of the Revised Statutes of the United States
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CHAP. 267.— An Act To amend section 5219 of the Revised Statutes of the United States. March 4, 1923.[[H. R. 11039](/us/bill/67/hr/11039).][[Public, No. 518](/us/67/pl/518).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That section 5219 National banks. [R. S., sec. 5219, p. 1009, amended](/us/rs/s5219/p1009) .of the Revised Statutes of the United States be, and the same is hereby, amended so as to read as follows:
" “Sec. 5219.The legislature of each State may determine and Taxation by States.direct, subject to the provisions of this section, the manner and place of taxing all the shares of national banking associations located within its limits. The several States may tax said shares, or include Permitted on shares, dividends, or income.dividends derived therefrom in the taxable income of an owner or Conditions requisite.holder thereof, or tax the income of such associations, provided the following conditions are complied with:
“1.
(a)The imposition by said State of any one of the aboveOnly one form. three forms of taxation shall be in lieu of the others. “(b) In the case of a tax on said shares the tax imposed shall not On shares, not higher than on capital of other banks.be at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of such State coming into competition with the business of national banks: *Provided*, That bonds,*Proviso*.Personal investments not deemed banking capital. notes, or other evidences of indebtedness in the hands of individual citizens not employed or engaged in the banking or investment business and representing merely personal investments not made in com-1500petition with such business, shall not be deemed moneyed capital within the meaning of this section. “(c) On income, not higher than financial corporations nor than the highest mercantile, etc,, corporations. In case of a tax on the net income of an association, the rate shall not be higher than the rate assessed upon other financial corporations nor higher than the highest of the rates assessed by the taxing State upon the net income of mercantile, manufacturing, and business corporations doing business within its limits. “(d) On dividends, not greater than on net income from other moneyed capital. In case the dividends derived from the said shares are taxed, the tax shall not be at a greater rate than is assessed upon the net income from other moneyed capital. “2. Nonresidents taxed in district where association located. The shares or the net income as above provided of any national banking association owned by nonresidents of any State, or the dividends on such shares owned by such nonresidents, shall be taxed in the taxing district where the association is located and not elsewhere; Payment at sources.and such associations shall make return of such income and pay the tax thereon as agent of such nonresident shareholders. “3. No exemption of real property. Nothing herein shall be construed to exempt the real property of associations from taxation in any State or in any subdivision thereof, to the same extent, according to its value, as other real property is taxed. “4. Former provisions not to prevent confirming by States of tax heretofore paid, etc. The provisions of section 5219 of the Revised Statutes of the United States as heretofore in force shall not prevent the legalizing, ratifying, or confirming by the States of any tax heretofore paid, levied, or assessed upon the shares of national banks, or the collecting thereof, to the extent that such tax would be valid under said section.” " Approved, March 4, 1923.