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Show STATE EiffiS AGREEMENT ON BANK TAXATION Compromise Stands and Institutions In-stitutions Agree to Pay 35 Pet. on Capital Stock and Full Real Estate Tax The State Board of Equalization Equaliza-tion has reached a definite understanding under-standing with officials of the Utah Bankers Association, it was announced an-nounced Sunday. Banks will pay in Utah this year the same proportion pro-portion of taxes as they did last year. Under this arrangement the banks will pay full taxes on their real estate valuations, as fixed by the county assessors, and 35 per cent of what they paid on their capital stock previous to 1929. The Utah statute which fixes what shall be 100 per cent of the value of a bank share failed to hold water when the banks took the matter into the federal courts. Under compromises reached in ail but two counties in Utah, the banks paid taxes in 1929 on 35 per cent of the valuation as fixed by statute, the banks claiming they have previously been assessed out of reason, but at the same tune expressing a willingness to pay what was found, after a series of conferences ,to be a reasonable share of the "costs of government in the state. The two counties, Weber and Cache, contested the banks' position posi-tion in the courts and lost. They did .not appeal. When the appeal period expired, negotiations were entered into between the banks and the state, with the result that Chairman E. H. Snow has prepared pre-pared the following letter which has been mailed to the county assessors as-sessors : "For the sake of uniformity and in harmony with oral suggestions, we are writing you these instructions instruc-tions concerning the . taxation of banks for 1930 and until further notice. "Heretofore the real estate owned own-ed in Utah by the banks has been assessed direct to the bank at valuations val-uations comparable to other real estate in the vicinity. This assessed assess-ed valuation has been deducted from the aggregate sum of the capital, surplus and undivided profits as of January 1. The remainder re-mainder represented the value of the shares of stock. The notice of assessment of real estate was sent to the bank direct and the assessment assess-ment of the shares to the respective respec-tive stockholders, a list of which was furnished the assessor by the bank. "For this year and until advised otherwise, proceed as heretofore, except that in assessing the bank shares they should be assessed at 35 per cent of their value as determined de-termined by the above formula instead in-stead of 100 per cent as heretofore. hereto-fore. "The tax notice should be sent to the bank for payment as heretofore. here-tofore. "This is in accordance with the understanding we have had with the officials cf the Utah 3ar.kers' Association. In this connection let us suggest that where valuations of real estate belonging to banks were and are new comparable to other real estate in the vicinity, no attempt should be made to increase in-crease these valuations for tax purposes pur-poses unless such other real estate is also increased in value. "Any failure cr omission to assess as-sess by the assessor in accordance with these instructions should be corrected and .edjusted by the coui.ty comraissienc-rs wh"n sit-in ; ?.s a beard cf et;ua'.ii:at.cn in : June." |