Metzger, 081933 PAAGO, AGO 87

Case DateAugust 19, 1933
CourtPennsylvania
Honorable Leon D. Metzger,
AGO 87
Opinion no. 87
Pennsylvania Attorney General Opinions
Opinion of the Attorney General
August 19, 1933
         Taxation—Corporate Loans—Bank deposits.          Deposits in incorporated banks, upon which interest is paid, are subject to corporate loans tax under the provisions of Section 17 of the Act of June 17, 1913, P. L. 507 as amended.          Honorable Leon D. Metzger, Secretary of Revenue, Harrisburg, Pennsylvania.          Sir: You have asked to be advised whether i deposits in incorporated banks, upon which interest is paid, are subject to corporate loans tax under the provisions of Section 17 of the Act of June 17, 1913, P. L. 507, as amended.          The Act 'of July 15, 1919, P. L. 955 amended Section 17 of said Act of 1913 as indicated by the words in italics in the following passage therefrom:
"Section 17. That all scrip, bonds, certificates and evidences of indebtedness issued, and all scrip, bonds, certificates and evidences of indebtedness assumed, or on which interest shall be paid, by any and every private corporation, incorporated or created under the laws of this Commonwealth or the laws of any other State or of the United States, and doing business in this Commonwealth, and all scrip, bonds, certificates, and evidences of indebtedness issued, and all scrip, bonds, certificates, and evidences of indebtedness assumed, or on which interest shall be paid, by any county, city, borough, township, school district, or incorporated district of this Commonwealth are hereby made taxable in the year one thousand nine hundred and nineteen, and annually thereafter, for State purposes, at the rate of four mills on each dollar of the nominal value thereof: * * * ”
and by adding at the end thereof, the following paragraph:
"It is the intent of this act that all scrip, bonds, certificates, and evidences of indebtedness made taxable under) section one (1) of the act to which this is an amendment, and that only such scrip, bonds, certificates, and evidences of indebtedness which cannot be made taxable under this section are to be taxed under section one (1) of said act."
         In Commonwealth v. Jacob Reed's Sons, Inc., 25 Dauphin, 117 (1922), affirmed 275 Pa. 20, (1922) Judge Hargest reviewed at some length the history of our legislation taxing personal property, showing exactly how the distinction between the "personal property tax" and the "tax on loans" came to he made. As it gradually...

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