Show STATE TAX MEN AND IN u months of negotiation lead to agreement on changes broadening method of state or local taxation of Mal lonal bans s araw YORK months ot conference and negotiation between an american bankers association special committee and the committee ot the association of states on bank taxation have resulted in an agreement on a form of amendment to the federal statute dealing with state or local taxation ot national banks that maintains the integrity of the protective ot the section and Is satisfactory to the commissioners committee bays the american bankers association journal thomas B paton the organizations general counsel in making the announcement no says that previously pro posed amendments to the statute which Is known as section have been opposed when it was felt their terms would enable any state to place banks in a tax class by themselves i the law as it stands today mr paton sas permits state or local taxation of national banks or their shareholders in one or the other of the four following forms abe share J holders upon their chares a prop erty tax the shareholders upon their dividends a personal income tax i the bank upon its net income the bank according to or measured by its net income only one form of tax can be imposed except that the dividend j tax may be combined with the third or i fourth form it other corporations and i shareholders aro likewise taxed the conditions permitted are the tax on shares must be at no greater i rate than on other competing moneyed i capital the income tax on ers must be at no greater rate than on net income from other moneyed I 1 capital the tax on bank net income must be at no higher rate than on i other financial corporations nor the highest rates on mercantile and manu j corporations doing business within the state the ax measured by ne bank income is subject to the same limitations as the tax on net income of tha bank but may include I 1 entire net income from all sources state seek broader law national banks and their share hold era are taxed in different elates tinder 1 a diversity he says the TT S supreme court has held that th low millage rate on intangible person hi property Is in violation ot the present law where it results in national bank shares ielne taxed at a rate greater than that assessed upon corn moneyed capital A number 0 states unwilling to use the income methods permitted had the alternative ot either repealing the intangible tax laws or limiting taxation of national bank shares at the intangible rate therefore they sought a broadening of the permissive provisions also mr paton points out a supreme court decision held a states excise tax on corporations invalid where it included income from federal and local government bonds in the excise measure this created doubt as to some state bank excise taxes conferences have been held to reach some agreement which would protect the banks satisfy the tax commissioners ners and avoid a contest in congress mr paton says from the standpoint of the tax authorities the main objectives have been an amendment which would permit certain states to retain their low rate tax intangibles and at the same time derive an adequate but not excessive revenue from national bank chares and an amendment which would permit certain states to tax corporations on their net income excluding income from tax exempts and at the came time derive the same revenue from the banks as heretofore from the standpoint of the banks it has been deemed imperative to maintain the protective principles of section the changes agreed on in the proposed amendment the existing provision permitting taxation of hank shares no higher than the rate upon competing moneyed capital haa been modified with respect to certain intangible tax states only by a provision under which instead ot the moneyed capital limitation the rate ahall not be greater thin the rate upon the shares ot other financial corpora lions nor upon the net assets of indi vl duals partnerships or associations employed in the banking loan or investment business nor higher than the rate assessed upon mercantile manufacturing and business corporations with head office in the state also an added flath alternative per missive method designated as a tax permits a state in place ot an ad valoree valorem tax on bank shadrea to add together total dividends paid the preceding year and the increase in capital surplus and undivided profeta less additions to capital or surplus paid in by stockholders and to divide this total by the ot charest the slate may tax the shares based upon this amount but not to exceed the rate on other corporations in pro portion to their net profits this method is designed tor states which have heretofore taxed national banks upon their entire net income from all sources at a proportionate rate to that assessed upon business corporations the amount which Is the basis ot the tax is the equivalent ot the entire set income from all sources but being assessed against the shareholder upon hla property in the shares and not a tax upon the batik tt Is not open to the objection as an indirect tax on exempt I 1 mrs J W shepard returned the J first of the week from a visit at salt lake city she was accompanied on her return by mrs J W walker and children visit the Sh epards r at moab mr and mrs J lt dougan were arrivals yesterday from salt laate city after an absence of about two months mr dougan who Is superintendent of the utah southern oil company has been in wyoming and texas during the summer inspecting operations of als company mr and mrs henry granun airs anna aured J T loveridge and calten ino to cac und where they visited for evral hours with mr daughter mrs annie pace and family mrs allred fell from her porch tuesday morning and suffered baly sprained or possibly fractured hap mrs was alone at her horne and lachere lay here she fell to bev eral hours arrived |