Show BANK TAX CASE IS SETTLED BY COUNTY A tax suit filed by the first national bank of moab against IL 8 rutledge county treasurer to enjoin his collection of taxes levied on an the stock of the bank was settled by ca compromise at a meeting of the board of county commissioners monday the compromise settlement was identical with that made by the commissioners of salt lake county wit with ti banks of that county and with settlements tle ments made in many other counties of the state since justice sutherland of the U S supreme court ruled early this near ear that the taxation of bank stock was void practically every bank in utah has brought suit to enjoin the collection of taxes on its stock the banks have not contended that their real estate or other tangible property should not be taxed or were taxed too high but hold that by the provisions of section of the revised statutes of the united states as amended any tax on the shares of stock ol 01 a bank Is null and void the complaint tiled filed against treasurer rutledge set forth that the bank had made its return of property for assessment and he would be compelled to collect the taxes assessed on its stock unless the he court should interfere it pointed out fur continued on page four BANK TAX CASE continued from first page ther the capital stock of bank is by U S statute specifically excluded from taxation and that the bank Is discriminated against by fact that there are in utah of capital in the hands of individuals invested in mortgages and securities sach as the bank owns which are not taxed at all that mortgage loan companies building and loan companies finance companies investment bankers real estate companies and individuals with investments of in securities similar to those owned by the bank are not taxed on their capital stock or on the securities which they hold that foreign building and loan companies had investments in utah of on jan 1 and that their business Is in competition with of banks and they do not pay taxes in excess of on this property that investment dealers who have of capital invested in utah business similar to that of banks pay taxes on only that bonds of the united states the state of utah and its municipalities are nontaxable non taxable in the individuals or corporations except when owned by a bank in which case the bank pays on the full value of the bonds which it holds C A robertson attorney for the national bank appeared before the commissioners and made an offer on behalf of the bank to settle the suit by paying the full amount of taxes assessed against its tangible property and 35 per cent of the amount assessed against the stock of the bank explaining that while attorneys generally did not believe that any tax could be collected on bank stock nevertheless the utah bankers association had recommended to its members that a reasonable settlement with the counties which had been fixed at 35 per cent in salt lake be made the commissioners passed a resolution authorizing that a stipulation be entered into between mr robertson on behalf of the bank and county attorney C S thomson on behalf of treasurer Rut ledgeS for a settlement on the offer made judgment will be entered on this stipulation it Is understood that the state board of equalization has advised sanpete county accept a similar compromise and has stated that Is the consensus of opinion among law years that the tax on bank stock could not be collected if carried to the courts the discrimination against banks Is oneff the matters that will be corrected by the state tax commission it Is reported |