State taxation of financial institutions
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The question of bank taxation has recently come to assume a position of first importance to banks, owners of other moneyed capital and to state legislatures. The national banking act (Section 5319) provides that the states may tax national banks but at no higher rate than that apÂ¬ plied to moneyed capital, in the hands of inaiviauals, which comes into competition with capital used by national banks. The conviction that they are subject to competition from moneyed capital that either escapes taxation or is taxed at a lower rate than bank capital has led the bankers in many states to bring suit claiming the existence of discriminÂ¬ ation prohibitea under Section 5219. Court decisions in these suits have upheld the contention of the bankers and the state tax laws have been set aside as unconstitutional.
- Business administration